GBTA Foundation Survey of Travel Mangers Finds General Satisfaction, Cost-Savings When using Dynamic Pricing Model
ALEXANDRIA, VA, 2014-10-2 — /Travel PR News/ — Dynamic pricing in hotels for corporate traveler managers continues to be a well-received cost-saving measure, according to a new study by the GBTA Foundation, the education and research arm of the Global Business Travel Association (GBTA). The study, Dynamic Hotel Pricing – Has Its Time Come?, sponsored by Hilton Worldwide, surveyed nearly 200 travel managers to understand why current adopters use the dynamic pricing model for lodging and why it has been slow to catch on with others.
Nearly one-quarter (22 percent) of the respondents have “adopted” the dynamic pricing model and are currently using it with at least one hotel company. All current adopters noted they were likely to continue using dynamic pricing agreements and are generally satisfied with the service. In fact, two-thirds of the respondents indicated they are likely to enter into a new dynamic pricing agreement with at least one additional hotel in 2015. The majority of adopters reported it is the only discount available at hotels for travel managers who book a lower volume of rooms.
“Dynamic pricing can allow corporate travelers to obtain a discount on rooms, particularly in a market where companies do not have sufficient volume to negotiate a set rate,” said Joseph Bates, GBTA Foundation Vice President of Research. “Our research finds, however, more education is needed to counter confusion and misconceptions about the dynamic pricing model.”
The benefits of dynamic pricing, as described by travel managers using the pricing structure, include:
– Cost savings (indicated by 47 percent of adopters)
– Access to more types of rooms (33 percent)
– Transparency of rates (25 percent)
The study found there is room for education, particularly among travel managers from companies with a hotel spend of less than $5 million annually and low volume need. Travel managers with these companies represent an untapped market, as they stand to benefit the most from the dynamic pricing structure, yet are the least likely to have heard of dynamic pricing. For companies that typically would not qualify for a corporate discount, dynamic pricing is an effective cost-saving tool.
According to the report, the majority of non-adopters who have been offered dynamic pricing said that concerns about confusion, price fluctuation and uncertainty prevented them from adopting dynamic pricing. The research indicates that effective communication would provide managers with increased clarity about dynamic pricing that could be converted into higher adoption rates.
In the U.S. a total of 193 corporate travel managers completed the online survey between April 29, 2014 and May 13, 2014. The online survey was sent to 2,888 corporate travel managers, including member and non-members of GBTA, for a response rate of 7 percent.
The survey, Dynamic Hotel Pricing – Has Its Time Come, is available exclusively to GBTA members by clicking here. Non-members may purchase the report through the GBTA Foundation by emailing firstname.lastname@example.org To view an abstract of this research, please click here.
The GBTA Foundation will also hold a webinar, Dynamic Hotel Pricing – Has Its Time Come?, on October 2 at 2 p.m. ET. The webinar is sponsored by Hilton Worldwide. Registration for the webinar, which will feature Joe Bates, Vice President of Research, GBTA Foundation and Maria Chevalier, Principal/Consultant, End-to-End Travel Consultants is open now at http://www.gbta.org/Education/Pages/14dl1002.aspx.
About the GBTA Foundation
The GBTA Foundation is the education and research foundation of the Global Business Travel Association (GBTA), the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. Collectively, GBTA’s 7,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA provides its growing network of more than 28,000 travel professionals and 125,000 active contacts with world-class education, events, research, advocacy and media. The Foundation was established in 1997 to support GBTA’s members and the industry as a whole. As the leading education and research foundation in the business travel industry, the GBTA Foundation seeks to fund initiatives to advance the business travel profession. The GBTA Foundation is a 501(c)(3) nonprofit organization. The GBTA Foundation is a 501(c)(3) nonprofit organization. For more information, see gbta.org and gbta.org/foundation.
About the Global Business Travel Association
The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings organization headquartered in Washington, D.C. area with operations on six continents. GBTA’s 7,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives business growth, visit gbta.org