Hotel chains are increasingly adopting dynamic pricing and focusing on loyalty programmes to boost corporate sales and enhance customer engagement.
This comes amid sustained leisure and business travel demand, which has resulted in over 8 per cent year-on-year growth in average room rates in the premium category.
While dynamic pricing is a norm for retail bookings, there has been a greater push in the past few months to convert corporate contracts under the model. This is helping hotel chains optimise their revenue and making it easier for multinationals to manage large procurement contracts.
Hilton’s ability to capitalise on business stems from a holistic commercial strategy,” said Manish Tolani, Hilton’s vice president & commercial director, South Asia. This means balancing brand expansion, dynamic pricing and deep customer engagement, he said.
Corporate and meetings, incentive, conference and exhibition (MICE) segments were the growth drivers for Hilton which saw 15-17 per cent growth in revenue per available room (RevPar) in FY 2024, Tolani added.
“For corporate clients, dynamic pricing offers the flexibility to secure accommodations that align with their travel budgets and schedules. Marriott’s Bonvoy loyalty program complements this by providing additional benefits, such as enhanced reward points for eligible bookings, further incentivising corporate partnerships,” said Monisha Dewan, Marriott International’s vice president (sales & distribution), South Asia.
Traditionally, corporate contracts would come with fixed or static rates. In a high-demand scenario with properties going full, hotels would have to offer rooms at an agreed rate, and this meant yield dilution. Similarly, in an off-season, corporates too could end up paying more on fall in room rates. Under the new model, corporates are offered 15-20 per cent discount over prevailing room rates instead of a fixed rate, it is learnt.
Another trend in corporate contracting is its stress on sustainability. “There is a focus on eco-friendly weddings and event practices including sustainable catering, waste management practices and use of local products,” Dewan said.
Corporate travel market in India is projected to grow at 10.1 per cent and double to $ 20.8 billion by FY 2030, Deloitte said in its report last September.
“In 2024, Hyatt recorded a 16 per cent growth in total revenue from the corporate, MICE and wedding segment S across India and South West Asia. We continue to carve a distinct niche by offering premium business-focused properties, highly personalised event planning, and strategic expansion into high growth markets,” said Kadambini Mittal, Regional Vice President, Commercial, India and South West Asia, Hyatt.
