Marriott-Starwood deal will change corporate travel: CWT

Marriott’s acquisition of Starwood is set to change the hotel industry and corporate travel buyers need to start considering how the deal will change their travel programs, suggests new research published by Carlson Wagonlit Travel (CWT).

“Consolidation in the hotel industry isn’t new but the Marriott/Starwood tie-up is likely to change the way corporate travel is bought and sold. Everyone has to think very carefully about what this means for negotiating corporate travel deals,” Scott Brennan, CWT EVP and head of global supplier management, stated in a release.

In 14 of the world’s top 20 cities, the new hotel group will have nearly a third of all the available rooms, rising to half in some places. Also, CWT’s analysis suggests Marriot, more than any other chain, has chosen not to take part in corporate travel RFP processes.

“The implications are potentially huge. We think the new Marriott/Starwood group is going to have a lot of say in the market, which could alter the way corporate rooms are bought and sold. We don’t yet know the full impact and because the new group won’t be finalized in time for the negotiations this year, we won’t know until the 2017 negotiating season, in September next year,” Brennan stated.

CWT suggests corporate travel buyers take the following steps to start building their negotiating position:

1. Assess key markets: look at share by top chain within key cities or areas within a city, assess alternative hotels and potential savings.
2. Prepare to have a more flexible approach for 2017, incorporating alternative suppliers as required.
3. Adapt your travel policy to ensure compliance.
4. Communicate to travelers, engage them in corporate objectives, and create shared ownership in the results.

For more on CWT, visit carlsonwagonlit.com.