Hotels Might Not Like Where Corporate Rate Discussions Are Heading

Hotel corporate program strategies aren't straightforward at the best of times. A new "dual rate" pricing model could make lives easier for travel managers, but a lot more complex for the properties their employees will be checking in to.

So far, coronavirus has mostly united rather than divided the travel industry.

That could soon change as corporations and hotels figure out room rates for the rest of the year and beyond following a series of trends that will influence pricing.

First, cleaning. Prices may rise due to the extra hygiene measures and protocols hotels are putting in place, in particular for those looking at 24-hour gaps or longer between guests.

On the other side, there will be weaker demand ahead, with a depleted army of road warriors after widespread furloughing and layoffs, ongoing anxiety concerns, and an expected shift to virtual meetings.

But with duty of care front of mind, more companies will want employees to book within the travel program, checking into designated hotels that meet stringent safety standards.

As a result, travel managers will be issuing request for proposals to build their hotel program to strict COVID-19 specifications.