corporate hotel rate negotiations
Corporate Hotel Rate Negotiations for 2018 Forecast – Both Buyers and Sellers Have Positions of Strength
Bjorn Hanson, PhD | October 6, 2017
October 5, 2017 By Bjorn Hanson, PhD, Clinical Professor NYU School of Professional Studies Jonathan M. Tisch Center for Hospitality and Tourism As the corporate and contract rate negotiation season is about to begin, the outlook for corporate rates is for sides to negotiate with positions of strength. The sellers' position of strength is based on the highest occupancy percent for the US since 1984 - 65.5 percent for 2017 (about the same as it was for 2016). The buyers' position of strength is based on slowing US hotel room rate growth (approximate 3.0 percent in 2016 and between 2.0 and 2.5 percent in 2017) and increased use of alterna...
Corporate Hotel Rate Negotiations 2017 Forecast – A Change in the Balance of Power from Sellers to Buyers
Bjorn Hanson, PhD | October 4, 2016
By Bjorn Hanson, PhD., Clinical Professor at NYU School of Professional Studies Jonathan M. Tisch Center for Hospitality and Tourism As the corporate and contract rate negotiation season is about to begin, the 2017 outlook is for a change in the balance of power from sellers to buyers. Corporate and contract rate negotiations generally begin during September and continue into December. Corporate and contract rates represent almost 20 percent of occupied U.S. room nights and almost 30 percent of U.S. lodging industry revenue. Following among the largest percent and dollar increases in corporate contract rates in decades of typically betw...
