How to win the corporate business with hotel business intelligence

Three business travel trends have a mostly short-term negative impact on hotels.

Regardless of the type of knowledge job, position in the company, age, and any other variable, everyone was educated and trained during the pandemic on becoming more digitalized. Any knowledge work, including meetings, can be done digitally. The accelerated digitalization of work has improved productivity and everyday life for many knowledge workers. Many prominent corporate leaders demanded that people return to the office. Still, they later had to change their policies when key people started to look for more modern thinking and flexible employers. The digitalization of short meetings will decrease the need for travel and hotel stays. Hotels have seen a return of the business traveler, but this is only temporary after years of isolation. When things normalize, the downward trend of less business travel will continue. The number of company meetings will continue to grow, but most will be digital. When people travel for business, the traveler will likely have many digital meetings while on the road. Hotels that want to win business travelers must invest in solid technology and digital meeting environments. Hotels need higher internet speed and capacity to accommodate more people having digital meetings simultaneously. Hotels also need to provide a good workspace, in the hotel room or a coworking setting, with good lighting, backgrounds, and comfort.

Companies saw a significant drop in travel costs during the pandemic without the same reduction in business volume. Many companies would like to keep travel expenses at the new lower level and will implement new travel policies. A few companies have already announced that all meetings should be digital, with a few exceptions that need the approval of higher levels in the corporate hierarchy. In addition, travel managers will try to negotiate higher discounts for their hotel programs for 2023.

There is pressure on large corporations to comply with reporting on carbon footprint and other climate-related measurements. Consumers have bought the message from environmentalists that travel uses lots of fossil fuels and is terrible for the climate. It does not matter that the climate impact from travel is much lower than from many other industries. Travel symbolizes something seen as an unnecessary luxury. Corporations will pay attention to how and how often they travel.

The business travel volumes will still be significant, so hotels should user hotel business intelligence to prepare thoroughly to renegotiate the corporate contracts for 2023. Hotels need to understand how the needs and requirements have changed. The bed is still essential, but if the internet connection is slow and there is nowhere to work, business travelers will stay at other hotels or maybe at an Airbnb.

 

If volumes decrease and inflation means increased general prices, travel managers understand that the hotel rates for 2023 will be higher. Therefore, there is no point in hotels offering lower rates because this will not stimulate the demand since demand is not kept low due to a high rate.

 

When traveling to a destination, the stay will likely be longer to minimize the number of trips to minimize the carbon footprint. Therefore, hotels should promote longer stays by including some perks or having a special rate for several nights' stays.