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Corporate travel ain’t what it used to be—and frankly, that might be a good thing.

Once the domain of faxes, fixed rates and well-thumbed directories, the world of managed hotel programs is getting a significant facelift. Travel managers today are trading in the three-ring binders for tech-driven tools and strategy sessions that sound more like boardroom warfare than room-service requests. And it’s about time.

According to a fresh research paper from the Global Business Travel Association (GBTA)—yes, that venerable institution still punching above its weight—and the ever-expanding Radisson Hotel Group, there’s a revolution unfolding in the realm of hotel procurement. And no, it doesn’t involve throwing pillows.

The report, snappily titled The Evolution of Managed Hotel Programs, reveals a bold new direction for those managing accommodation in a corporate world increasingly driven by algorithms, employee expectations, and the ever-present spectre of rising costs.

The End of the Annual RFP?

The humble Request for Proposal, or RFP if you’re acronymically inclined, is slowly being escorted out the back door like a guest who’s overstayed their welcome at a five-star buffet.

“Annual procedures are increasingly being viewed as outdated, expensive and inefficient,” says the GBTA’s no-nonsense CEO, Suzanne Neufang, who isn’t afraid to call time on the old ways.

Indeed, more travel buyers are skipping the yearly rate haggle and instead eyeing dynamic pricing, evergreen contracts and hybrid structures that offer flexibility without throwing budgets into a tailspin. Over 60% are embracing multi-year fixed agreements, while half are experimenting with share-based or spend-based targets. It’s enough to make a procurement officer spill their espresso.

Dynamic, But Not Unhinged

Now, before you think travel managers have gone completely rogue, there’s still a method to the mayhem. Fixed rates remain a firm favourite—but with a twist.

“Think of it like your favourite hotel breakfast,” explains Johanna Wessman Fresnel of Radisson Hotel Group. “You want variety, sure, but you also want to know there’ll be eggs. Same goes for pricing—some fixed, some dynamic, all dependable.”

Wessman Fresnel, who knows a thing or two about keeping 1,500+ hotels humming across more than 100 countries, says travel managers are under increasing pressure to juggle cost control with traveller satisfaction. And with Gen Z already booking their own trips using apps they coded themselves, the old rules no longer apply.

The report reveals that 60% of travel managers now prefer a hybrid pricing model, which combines the structure of fixed rates with the flexibility of dynamic pricing. It’s the mullet of hotel procurement: business at the front, party at the back.

Decisions, Decisions: Location, Location—and Wi-Fi?

So what tips the scales when travel buyers choose their preferred hotels?

Price is still king, of course. A whopping 83% prioritise company-negotiated rates and fixed pricing. But it’s not all about the dollars. Proximity to office locations (82%) and client sites (44%) remain vital, and increasingly, traveller preferences are nudging their way to the table.

It turns out today’s road warriors aren’t just looking for a bed and a breakfast buffet. They want seamless booking tools, tech-friendly rooms, and an experience that doesn’t feel like a trip back to 2007. Over half of hotel stays are now at company-preferred properties, indicating that employees are getting savvy about value, too.

Looking to the future, younger generations—yes, even Gen Alpha, who currently have more Peppa Pig experience than passport stamps—are expected to shake things up even further. Booking ease (79%) and tech-forward hotels (61%) are set to become key battlegrounds.

Gaps, Glitches and Green Goals

For all the progress, there are still gaps—and not just the ones in your sock drawer after a long-haul flight.

Travel managers report that coverage gaps remain in top-tier cities like London, Paris, Berlin and Amsterdam—locations where hotel rooms can be as elusive as a quiet corner in the office kitchen.

Sustainability is also proving to be a slippery concept. While over half of buyers see the value in environmental benchmarks, nearly 30% remain uncertain, and 18% are unconvinced altogether. A bit of work to do there, it seems.

Add to that concerns around spending standards and carbon tracking, and it’s clear that the journey toward greener, leaner hotel programs still has a few speed bumps.

Beyond the GDS: Hunting Deals Elsewhere

The Global Distribution System (GDS), once the beating heart of travel booking, is facing some competition.

A growing number of travel managers are venturing off the beaten path, with 62% saying non-GDS channels offer better rates and broader choices. Benefits include improved rate accuracy, better shopping experiences, and flexibility that fits the modern mould.

But before you throw your TMC under the bus, keep in mind that 93% of travel managers say their Travel Management Company (TMC) has its own preferred rates. The catch? Only 39% conduct regular audits on them. It’s like trusting your teenager to stay home alone without checking if they threw a house party. Brave—or just naive?

Spending Spree on the Horizon?

In a twist that will make budget hawks reach for the Panadol, 77% of corporate travel managers expect their business travel spend to remain the same or increase in 2025. Why?

Three reasons: rising prices (naturally), company expansion (which sounds promising), and more staff hitting the road (or the skies). So, more flights, more hotels, and more spreadsheets.

Final Boarding Call

If one thing’s clear from GBTA’s report, it’s that travel managers are no longer glorified booking agents. They’re strategy specialists, policy protectors and traveller whisperers—often all in one day.

The traditional hotel program hasn’t just had a refresh. It’s had a full renovation, complete with sustainable foundations, a tech-savvy rooftop bar, and rates that might hold up until check-out.

So next time you wander through a lobby in London or log into a booking tool in Berlin, spare a thought for the corporate travel manager behind it all. Chances are, they’ve rewritten the playbook—and added a few unexpected plot twists along the way.