In this special series, members of GBTA’s Board of Directors share their insights on topics that are shaping the future of the business travel industry. Today, we hear from Elizabeth (Liz) Oliveira, Global Travel Manager at OMERS and a valued GBTA Board member.
Are you knee-deep in the Hotel RFP season like I am? This time of year can be intense for travel managers, but it also offers a chance to identify key trends and strategies to secure competitive rates and favorable terms. Here are some observations and tips I’ve gathered, particularly as sustainability and technology continue to reshape our industry:
Dynamic Pricing and Rising Demand
With demand surging, dynamic pricing models are gaining traction. However, these models bring challenges, especially for corporations trying to predict actual room costs. I anticipate that in 2025, more companies will experiment with dynamic pricing in secondary markets where room night volumes are less critical. Interestingly, dynamic pricing might also become a key to securing Last Room Availability (LRA). This year, I reevaluated the number of hotels in our program and strategically reduced them in certain areas, which strengthened partnerships and improved rate negotiations, sometimes even ensuring LRA.
Shifts in Cancellation Policies
Hotels are increasingly extending cancellation policies beyond 24 hours. Buyers need to identify these shifts and challenge them where feasible. Whether it’s transitioning from fixed to dynamic rates, negotiating for LRA, or navigating extended cancellation windows, buyers must prepare for tougher negotiations in 2025, including addressing new destination or city fees.
Sustainability Takes Center Stage
Sustainability is no longer optional—it’s integral to modern corporate travel policies. Travel managers are aligning with eco-conscious initiatives by partnering with hotels that demonstrate strong environmental practices. Many are embedding detailed sustainability questions into their RFPs to gather critical data, establish baselines, and drive progress toward net-zero goals.
Advancements in Technology and AI
Technology, especially AI, is revolutionizing travel management. While still evolving, AI has been invaluable in my program. By collaborating with our innovation team and TMC, we’ve used AI-driven data to understand traveler behavior—such as why they prefer certain hotels—and to refine our strategic partnerships. These insights are helping us optimize our hotel program like never before.
Looking ahead to 2025, I believe the hotel RFP process will demand more strategic planning, adaptability, and robust negotiation. With a focus on trends like sustainability, technological innovation, and shifting pricing models, travel managers can position themselves for success in an evolving landscape.
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