July 26, 2023

Corporate Procurement Leaders Cite Challenging Travel Market Dynamics, Growing Need to Leverage Segments As 2024 Supplier Negotiations Begin

With flights to key corporate destinations mostly full and hotel rates stubbornly high, corporate travel and procurement leaders are faced with a uniquely challenging environment as negotiations with suppliers for 2024 business travel volume start this quarter.

A new research report released today from GBTA and HRS titled “The Power of One: How Breaking up Silos Can Drive Value in Converged Hotel Program Management,” offers new findings on the opportunities for corporate programs to enhance transparency, leverage the totality of their lodging segments via convergence, and take ownership of new operational trends impacting travel expenditures.

Among the report’s key findings:

  • Less than a quarter (23%) of buyers report that over the past year it was easy to obtain favorable hotel rates, while only 18% say it was easy to secure favorable air discounts.
  • When asked to pick two categories that would be most challenging for securing favorable terms in the next two years, most respondents picked air (69%) and hotel (56%).
  • Despite this outlook, 84% of travel managers say their company will conduct hotel RFPs within the next year.
  • Most travel managers (54%) think their company would achieve greater efficiencies via use of convergence, while only one in 10 say they would not.
  • Top benefits travel managers cite from a more converged approach include consolidated data (70%), greater discounts (66%), process efficiencies (57%), and time saved on RFPs (57%).

“There is no question that suppliers have leverage today, and corporations remain challenged to keep travel costs in line even as business opportunities grow,” said HRS CEO Tobias Ragge. “In this environment, the ability to cumulatively bring transient, meeting and extended stay volume together – the core elements of convergence – is a necessary launching point for 2024 supplier negotiations.”

Read the full announcement here. GBTA members can access the full report in the GBTA Hub.


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Industry Spotlight

Trends & Insights on the Travel Manager Role

Curious how the role of a travel manager has changed over the last few years? Wondering how it may evolve in the future? Find the answers to these questions and more in a new report from GBTA and Cvent. From compensation, to team structure, this report provides an in-depth look at this critical role, and offers insights you can use to find career success in this dynamic industry.

Read the Report Today


July GBTA Volunteer of the Month

Maren Hanschke
President FCTG Mexico & LATAM Network
Flight Centre Travel Group

De nacionalidad alemana y radicada en México con más de 20 años en la Industria del Viaje. Su experiencia en la industria de viajes incluye Operaciones, Account Mangement, Implementaciones, Relaciones con clientes, Ventas, Ofertas de productos y Negociaciones con proveedores clave de la industria. Ha aprovechado este conocimiento a nivel regional como Director consolidando la red de FCM Travel Solutions en los mercados de América Latina y el Caribe con presencia en más de 18 Países. A partir del 1ero de Marzo 2020 es nombrada presidente para e Grupo de FCTG Mexico y Latam Network. Miembro del LATAM Advisory Board de GBTA y reconocida como top “50 Influential Women in the Travel Industry” por WINiT.

Of German nationality and settled in Mexico with more than 20 years experience in the Travel Industry. Her experience in the travel industry includes Operations, Account Management, Implementations, Customer Relationships, Sales, Product Offers and Negotiations with key industry suppliers. She has taken advantage of this regional knowledge as Director by consolidating the FCM Travel Solutions Network in the Latin American and Caribbean markets in 18 Countries. Since 1st March 2020 she has been appointed President for FCTG Mexico and LATAM Network. Member of the LATAM Advisory Board of GBTA and recognized as one of the "50 Influential Women in the Travel Industry” by WINiT."

Learn More


GBTA WINiT Awards Nomination
Time Is Running Out to Submit Nominations for GBTA WINiT Awards

Nominations Close on August 25

The GBTA WINiT Awards celebrate individuals and companies driving positive change for the career mobility of women in travel-related industries. Nominate individuals or companies for the GBTA WINiT Awards to acknowledge their remarkable work in helping women advance in their careers. You honor their accomplishments and contributions to the workplace and our industry.

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Crisis24 Intelligence Brief

Asia - Typhoon Doksuri tracking west-northwestward northeast of the Philippines early July 26, following landfall over northeastern Fuga Island.

Belgium - Ryanair pilots based at Brussels Charleroi Airport, Belgium, to strike July 29-30. Flight disruptions likely. Reconfirm flights.

Greece - Emergency crews working to extinguish wildfires across Greek island of Rhodes as of July 25. Evacuations, flight cancellations ongoing.

India - Rallies over ongoing tensions in Manipur likely across India into at least mid-August following recent protest activity.

Portugal - Unionized ground handling staff plan to strike across Portugal July 30-31 and Aug. 5-6. Air travel delays likely.

United Kingdom - Ground staff at London Luton Airport, UK, plan to strike July 28-Aug. 2; processing delays and flight disruptions are possible.

More Information

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