Corporate buyers are opposed to the push away from contracted rates to dynamic pricing by hotels wanting to maximise revenue in the strong Australian hotel market. “Everything is pre-authorised – we need certainty, we need contracted rates,” Group Procurement Manager at Boral, Brian Jeffreys, told the Association of Corporate Travel Executives conference in Sydney yesterday.
His comments were greeted with clapping but the days of corporate customers being able to secure a last-minute room at their contracted rate appear doomed. Accor is rolling out a new hybrid model where the fixed rate cuts out and shifts to dynamic two weeks before travel while Hilton has already moved many of its smaller account to dynamic.
Meanwhile, the panel of experts said rates were certain to rise around the country over the next year with Sydney leading the way with growth of between 5% and 7%.