15/05/2013 Statistics and MICE researches

Business travel: a Cisalpina survey outlines new scenarios related to corporate purchases of overnight stays at hotels

Dynamic hotel rates, new pricing policies and how they influence the purchase rationale of Italian companies, modifying their attitude to spend for overnight stays in hotels: these are the underlying themes of the new survey conducted by Cisalpina Research, the study centre of Italian Travel Management Company Cisalpina Tours.

The survey, conducted via web, involved a sample of more than 5,000 medium and large-sized companies and was developed in collaboration with Procurement Channel, a publishing company specializing in procurement.

The aim of the survey “understanding how companies are reacting towards new scenarios related to purchases for overnight stays in hotels and if – and how – their attitudes have changed regarding spend by virtue of new hotel management methods, increasingly focused on evolving rates and on the web channel”, in short, so-called dynamic pricing.

First and foremost, the survey reveals Italian companies’ habit of concentrating booking volumes on specific facilities, through centralized negotiation,  using Hotel Program which is not, however, always a determining factor when making purchase choices.

Secondly, it show companies’ lack of familiarity with new hotel pricing policies: in fact, only 21% of the respondents said that they were updated about the new logic used to define hotel rates, 43% “had never heard mention of this” and the remaining 35.7% had never fully investigated its advantages.

In spite of this, the idea that web rates are more cost-effective, emerged: 47% maintain that using web rates definitely has economic advantages and almost the same percentage admits using the web channel, either directly or through an agency, to look for cheaper rate solutions, even though this often involves wasting time and more penalizing conditions that outweigh the final savings.

Furthermore, the survey shows how, by multiplying booking channels and diversifying the facilities booked, the fear that companies will not be able to recover VAT or conduct audits or reporting increases due to the fact that it is more difficult to maintain total control of hotel spend which represents one of the most significant cost items of corporate mobility.
For this reason, today Travel Management Company’s task is to “integrate the trend towards the multiplication of channels using centralized, simplified management methods in order stay in line with corporate parameters without, however, foregoing the benefits offered by the new dynamic rates available on the web”.

Tag: Cisalpina Tours, business travel, studies and research
Statistics and MICE researches
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