August 21, 2013

UK: Negotiated hotel contracts declining

While nearly all U.K. companies now have developed a travel policy, the number of firms who have negotiated preferred hotel contracts is declining, according to a survey of 100 companies in the United Kingdom conducted in late 2012 by AirPlus International.

About 69 percent of respondents indicated their companies had a preferred hotel down from with 82 percent who indicated such deals, the last time the survey was conducted in 2011. According to the AirPlus report, the declining percentage is in part due to the growing popularity of budget hotel brands in Europe and the tendency of some European hotels preferred by employees not to be available for booking on global distribution systems, situations that have led some companies to allow employees greater booking flexibility.

Respondent companies with corporate airline discounts slightly increased to 46 percent from 44 percent. The report partially attributed the modest increase to the United Kingdom being "exceptionally well-served by low-cost carriers on short-haul routes."

Ninety-four of the 100 companies surveyed have developed a travel policy, according to the report.

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