CORPORATE SOURCING FUTURE OUTLOOK - HOW DATA & DIGITAL PLATFORMS WILL CHANGE THE BUSINESS TRAVEL WORLD
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CORPORATE SOURCING FUTURE OUTLOOK
HOW DATA & DIGITAL PLATFORMS WILL CHANGE THE BUSINESS TRAVEL WORLD
Björn Nilse
15 April 2021
SOURCING RECAP 2020
2020 renegotiations addressed the new challenges and created added value
Duty of care Cost Planning
pressure reliability
HYGIENE CERTIFIED SAVINGS CONSOLIDATION
REDUCTION IN NUMBER OF HOTELS IN HOTEL PROGRAM
81%
~5% -40%
BREAKFAST INCLUDED
99%
NLRA SHARE PROCESS TIME
CANCELLATION >48H
34% ~ 4 WEEKS
8%
HRS | |
Although Corona crisis is hitting the hotel industry heavily,
different market price behavior clearly visible
SAMPLE DATA WAVE 2 DEEP DIVE
NEGOTIATIONS IN SEPTEMBER 2020
54 11M 40k
RFPs RNs Hotels
- 5%
GLOBAL
- 5% - 3% - 7%
APAC EMEA AMERICAS
Countries Destinations
Top 3 1. Ireland - 12% Mountain View - 18%
Rate
2. › Global Chains: Chain with Hotels around the world
Decrease USA - 7% Dublin - 14%
YOY
3. › Regional Chains: Chain with regional foot print e.g. more then 2 countries
India - 7% New York - 14% › Local Chains: Chain with local foot print e.g. Hotels only in Germany
1. › Individual: Individual Hotel which does not belong to one of the above
Top 3 Turkey + 8% Karlsruhe + 7%
Rate
2. stated Hotel chains
Increase Germany 0% Munich + 2%
YOY
3. Austria - 1% Istanbul + 1%
HRS | |
RE-START 2021 TRENDS & PROJECTION
A lengthy recovery is expected which will go over three years
Market recovery vs 2019 Recovery by type vs 2019
Pandemic New Transient Large M&G Small M&G
0 recovery normal 0%
-20% -20%
-40% -40%
-60% -60%
-80%
-80%
2020 2021 2022 2023+ 2021 2022 2023+
Overall
Restrictions slowing recovery of M&G
Source: McKinsey
Upper hotel classes are hit the most, while also facing the highest
number of new developments which further increase pressure on
the market
Through SEP 2020 In % vs 2020
Development vs occupancy distribution Recovery per hotel class
120%
100%
80%
89% 60%
83%
75%
65% 40%
51%
45%
31% 29% 20%
14%
6% 8% 9%
3% 0%
Luxury Upper Upscale Upper Midscale Economy Unknown 2020 2021 2022 2023
Upscale Midscale
Development distribution Occupancy SEP 2020 vs. 2019 Luxury Upper Scale Midscale Economy
Source: STR Source: STR
The continuously low occupancy sets hotel industry under
pressure and drives market consolidation, while also driving
new business models
Increased M&A activity and New Work as a new
brand consolidation business model for hotels
Forbes | 27 Jan 2021
How The Pandemic Created A New Hotel
Giant In Less Than A Year
BTN | 25 November 2020
Accor to Take Full Ownership of SBE
Hospitality Group
BTN | 25 Aug 2020
Sonesta to Gain 103 Properties
After IHG Default
Skift | 26 Jan 2021
Accor Partners With Miami-Based Faena to
Fuel Its Lifestyle Hotel Strategy
Three macro trends are pushing travel managers to seek best-
of-breed solutions for their spend categories
Sustainability
Total return on Traveler safety
invest of trip & satisfaction
DIGITAL PROCUREMENT
THE WAY FORWARD
HRS | |IN THE END IT’S ABOUT DATA
Digital Procurement is part of our open Lodging-as-a-Service
platform will drive customer value and process efficiency
The HRS Lodging-as-a-Service Automated audience experience optimization through
Platform our AI-based data flows
Data flow
Procurement Booking Payment
Digital Tailored audience Ex-post controlling of
Negotiations management procurement strategyHRS has desigend products to deliver the needs of the
hotel industry
Secure & Grow New Managed New long-tail Revenue Management
Existing Business Business Business & Pricing Strategies
Marketplace SMART Marketplace PRIME Corporate Club Rate Data Insights Package*
*in developmentHRS has purchased the industry-leading specialist in business lodging
payment solutions as further building block in HRS’ technological advance
HRS is the only player who has
a fully integrated payment HRS Payment & Itelya
solution
>100 FTE
>40 Developer
14Thank YOU
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