• The Business & Corporate Travel Management Platform | Roomex

Roomex Hotel Forward Pricing Report | Q2 2024

To access the PDF version of this report with the H1 event calendar and negotiated hotel rates click here.   Author’s Note As we delve into the latest insights regarding forthcoming hotel prices, it’s imperative to navigate through the intricate landscape shaped by a myriad of economic factors and market dynamics. This author’s note aims to contextualise our findings, offering a nuanced perspective on the anticipated trends and their implications for stakeholders in the hospitality sector. 1. Significant Price Fluctutations: Our analysis of forward pricing data unveils a striking possibility of a 37% surge in hotel prices between weeks 15-25 of the current year. This substantial uptick underscores the volatility inherent in the hospitality market, urging stakeholders to adopt proactive strategies to mitigate potential impacts on budgetary considerations and consumer demand. 2. Impact of Economic News on Q1 Prices: Despite the anticipated price escalation, the first quarter of the year witnessed a softening of hotel prices attributed to unfavourable economic news. Understanding the interplay between economic indicators and pricing dynamics is crucial for informed decision-making in resource allocation and financial planning. 3. Moderated Year-on-Year Increases: In contrast to previous years, the year-on-year hikes exhibit a notable moderation, owing to mitigated inflationary environment. This deceleration in price growth signals a shift in market conditions, necessitating a recalibration of strategic approaches towards revenue management and pricing optimisation. In summary, while early 2024 shows promising prospects for hotel price increases, nuances in regional dynamics and the delayed surge in London warrant careful attention. Understanding these trends and their implications can empower stakeholders to make informed decisions and optimise strategies in response to evolving market conditions. Keith Watson – Chief Operating Officer at Roomex Q2 2024 Hotel Forward Pricing Forecasting Average Daily Rate (ADR) consumes a lot of time at hotel companies. Data scientists and revenue managers pour over historic trends, business on the books and pace trends. Revenue management software crunches through huge volumes of data, no doubt using the latest machine learning algorithms to find an appropriate price to sell their rooms at under various conditions such as lead time, length of stay, segment, room type etc. But then, of course, there is the emotional component. How does the revenue management function feel about the weeks and months ahead. Q1 2024 has been bumpy. Occupancy hasn’t always been easy to forecast and with the head winds of sticky inflation and recessionary pressures growing, pricing hotel rooms hasn’t been easy. Introduction It’s interesting to compare Q1 2024 to Q1 2023. Last year, price increases through the early weeks were strong and sustained. The first 4 weeks were increasingly less negative as the holiday period dropped out of the rolling 4 week average and then, from week 4 to 15,  there was a continuous increase. 2024 has been different. The early weeks took time to shed the lows of the end of Dec/early Jan, but this has been followed by very sharp rises followed by a softening. In summary, much more volatility in pricing interestingly more volatile than is shown in total UK demand. Report Outside of school half term week, total UK hotel room demand has been robust and continuously upward during Q1. In the first 10 weeks of the year market data shows 26.8m room nights checked in compared to 24.3m in 2023. So why the volatility in price? Essentially forward visibility seems to have been clouded by bleak economic news. The UK reported falling into recession in H2 2023. Whilst it may turn out to be mild and short, it’s unwelcome news. This, combined with interest rates continuing to bite,  has increased the pressure on sectors such as building materials, and construction. In such circumstances, it is business travel costs that are called into question. The below chart shows the rolling 4 week price movement over the full year 2023 and into 2024:   The monthly view in the second graph smooths out these bumps, but the comparison to previous years is telling. ADR saw substantial rises between 2022 and 2023, although a stronger decline in Q4 2023, which ties in with a harsher economic climate. The 2024 price increases are comparatively much lower and as mentioned, less confident. Turning to the forward price data, ADR in the 12 weeks ahead will rise. It also might suggest that some of the nervousness of Q1 eases and hotels apply more confidently apply consistent rises. The 12 week forward figures as always are a better insight into the minds and sentiment of revenue managers rather than an accurate price forecast. What we see is greater confidence in secondary cities than gateway cities (In this case London and Edinburgh). The largest cities show little change between 8 and 12 weeks. Secondary cities see substantial gains or put another way  are willing to wait a bit to start taking occupancy.   Taking the UK as a whole the 3 star market is currently suggesting a further 37% price increase between weeks 15 and 25. 15.7% of this is in by 21 and the rest beyond this point making it subject to change.  “…Taking the UK as a whole the 3 star market is currently suggesting a further 37% price increase between weeks 15 and 25…” Summary In the Q1 report we commented on strong forward ADR growth. Much of it didn’t materialise despite robust demand. For a range of reasons, hotels started the year strongly but lost confidence. The data is also support anecdotally. Certain sectors of the business travel market have changed their spend patterns. Building materials companies have reined in costs aggressively at the end of 2023 and are not releasing spend yet. That said, total market Room Nights checked in the UK has been robust. Having got to grips with changes in the market it’s likely we will see a more consistent upward price movement in the months ahead, perhaps with less froth in large cities. Roomex offers guidance to all its clients to navigate these trends and ensure their travellers..

Top Travel Management Software Compared in 2024

Welcome to our comprehensive guide to the top travel management software solutions available in 2024. With a staggering 445 million business trips undertaken every year by workforce travellers and business travel anticipated to rebound to pre-pandemic levels by 2027, the demand for efficient travel management solutions is increasing. Business travel plans aren’t straightforward. 78% of millennials intentionally carve out personal time during business trips, creating a need for easy expense management and travel booking systems that keep work and play organised and separate. In this blog, we’ll compare the leading travel management software options including Roomex, TravelPerk, Navan, and more equipping businesses with the tools to streamline their corporate travel processes and stay efficient.     Corporate travel management: What is it and why do you need it? Corporate travel management refers to the process of overseeing and coordinating business-related travel arrangements for employees within an organisation. This includes everything from booking flights and accommodations to managing expenses and ensuring compliance with company travel policies. Efficient corporate travel management is crucial for businesses of all sizes. Here’s why: It saves money: By centralising travel bookings and making use of negotiated rates with suppliers, businesses can achieve significant cost savings on travel expenses. It streamlines booking and expenses processes: A business travel management system streamlines the entire travel process, from booking to expense reimbursement, reducing the administrative burden and saving time for both travellers and travel managers. It upholds your corporate duty of care: Ensuring the safety and well-being of employees during business travel is paramount. Travel management software provides tools for tracking employee itineraries and communicating critical information during emergencies.     What is a travel management platform? A travel management platform is a comprehensive software solution designed to streamline and optimise various aspects of corporate travel. It serves as a centralised hub for managing all travel-related tasks, including booking, expenses, and analytics. This platform simplifies the entire travel process by consolidating multiple functions into a single interface. It enables users to: Book travel: Business travel software provides tools for booking flights, accommodations, and transportation seamlessly. Users can access negotiated rates and preferred suppliers that are in line with company travel policies. Manage expenses: An otherwise tedious task, travel management platforms automate expense reporting, allowing users to capture receipts, track spending, and submit reimbursement requests effortlessly. Share analytics: Monitor travel spending, identify trends, and make informed decisions. Travel management platforms offer robust reporting and analytics capabilities, providing valuable insights.   The top travel management software in 2024 compared   Roomex: Who should use it? Roomex is a business travel management company for businesses with highly mobile workforces requiring domestic travel accommodations. It caters to companies operating in Ireland, the United Kingdom, and the United States. How does it work? Roomex is a global hotel booking platform specifically designed for business travel, offering a centralised platform that connects to every hotel worldwide. By presenting the best accommodation options at competitive rates and consolidating payments into a single invoice, Roomex eliminates the hassle of manual administration and ensures cost savings for businesses. Best features: Roomex provides access to over 2 million properties from leading providers, offering exclusively negotiated rates not found elsewhere. Custom workforce filters allow users to narrow searches based on specific requirements, such as secured parking or free cancellation. Roomex’s industry-leading analytics software provides real-time data insights into workforce travel spend, policy compliance, and spend distribution. Roomex offers RoomexPay, a business expense management solution that eliminates out-of-pocket spending for travellers. Don’t take our word for it! Roomex provides a simple platform where we can keep an eye on everyone’s spending on hotels. Previously we would have to go through the expenses to check on trends. Capterra reviewer.   To learn more about Roomex, speak to a Roomex Travel Expert now.   Navan: Who is it for? Navan (formerly TripActions) is suitable for businesses seeking to simplify accounting, manage spend effectively, and save money across expenses and travel. How does it work? Navan is an all-in-one travel, corporate card, and expense management solution. A corporate travel planner can use it to book flights, hotels, trains, or rental cars. It provides businesses with real-time data insights to keep workforce travellers safe, reduce spending, and drive productivity. Navan leverages volume discounts from third-party sources like Priceline, Booking.com, and Expedia. Best features: Proactive notifications and support in case of flight delays or cancellations. A user-friendly interface for starting bookings directly, whether it’s flights, hotels, trains, or rental cars. Users can use the business’s own travel payment cards or link existing Visa and Mastercard accounts to track spending, control purchases, and earn rewards points. Here’s what customers say: Whenever a flight gets delayed or cancelled, or something is going on, they always let me know before the airline even does. Plus, it’s great to get Amazon credit for booking within the company asks. Capterra reviewer       TravelPerk: Who should use it? TravelPerk offers corporate travel software suitable for businesses of all sizes seeking to manage and book all their travel needs in one place. One of the leading names in corporate travel management, its also one of the more costly. TravelPerk boasts big-name customers like Uber, FarFetch, and Wise. How does it work? TravelPerk simplifies the process of booking flights, hotels, and rental cars for corporate trips. It offers a comprehensive suite of features, including real-time reporting, policy configurations, and expense management, making it a one-stop solution for businesses. Best features: TravelPerk offers access to the world’s largest inventory of flights, hotels, rental cars, and accommodation. Quick and efficient customer support with an average response time of just 15 seconds. Real-time travel tracking, policy configurations, and expense management, ensuring compliance and control over travel spending. Don’t take our word for it It’s a pretty comprehensive business travel solution for organisations with employees that often need to travel domestically or internationally and allows operations people to set cost limits so cost-effective booking is easy for staff. G2 reviewer.     Booking.com for Business..

What To Consider When Booking Hotels for Business Travel in 2024

Finding the right accommodation to fit your employee’s needs is crucial when planning business travel. Unlike leisure trips, priorities for business travel hotels shift towards practicality, comfort, and productivity. Things like late checkout and negotiated rates become more important; value for your employee’s time and your business money gets top billing. With 40% of hotel guests being business travellers, the range of suitable accommodations is limited. Choices for travel managers and bookers can be confusing. Travel habits and preferences among employees are changing too. 78% of Millennials now integrate leisure into business trips, with hotel requirements reflecting the dual purpose of their trip. So, what should you look for in business travel accommodation? Let’s explore essential factors for a productive stay. Location, location, location: Getting your business hotel location spot on will make any business trip more efficient. Choose somewhere with good access to transportation hubs and close to business venues, offices, or meetings to reduce time wasted travelling. Remember, though, a safe and secure neighbourhood is non-negotiable. Additionally, easy access to local attractions facilitates downtime and networking opportunities for your staff.   Cost: For most companies, cost is going to be a deciding factor when booking accommodation for business travel. A US study by Amadeus showed that for employees who don’t follow company travel policy (50% of business travellers), convenience and cost are the main reasons for looking elsewhere. For the best rates, look for hotels that offer: Transparent pricing structures: This helps you avoid hidden fees or surprises, allowing for better budget planning and financial management. Opportunities for negotiated rates or corporate discounts: These allow you to access better value rooms without compromising quality or service. If you or your staff travel regularly, then consider joining hotel loyalty programmes, too. Value-added services: Complimentary breakfast, Wi-Fi, and other services included in the cost will maximise the overall value of your stay. Clear cancellation policies: Prioritise hotels with clear cancellation policies to mitigate the risk of unexpected costs in case of itinerary changes or unforeseen circumstances.   Can you ask hotels for a cheaper rate? In short, yes. Hotel business rates are always more negotiable than you think. One effective strategy is to leverage the negotiating power of travel management platforms like Roomex, which can negotiate rates on behalf of multiple businesses. This significantly increases negotiating power and leads to more favourable rates and enhanced benefits. You can also ask about bulk booking discounts for extended stays or explore off-peak periods for potential cost savings.   Great business hotel amenities: Business travellers require essential amenities to ensure a productive stay. Look for hotels that prioritise: High-speed Wi-Fi and dedicated workspaces: This should be reliable and readily accessible throughout the hotel to keep you connected. On-site dining options: Quick and easy access to meals between meetings or during downtime helps keep staff happy and healthy. Or, use hotel restaurants to wine and dine clients, double down on sales pitches, or network. Access to printing, copying, and other business services: Think of the business hotel as your office away from home. Can the front desk provide you with the administrative services you need to do your job seamlessly when you travel? Hotel meeting room rental options: Keeping everything on-site is cost-effective and efficient. If travel will include business meetings and events, consider hotels that offer well-equipped meeting spaces, flexible booking options for varying group sizes, tech-savvy facilities for presentations and video conferences, and catering services for seamless event planning.   Note: With 80% of travellers wanting to book hotels online, you must look for business travel accommodations that make it easy to view, filter, and evaluate amenities before arrival.   Wellness facilities: In 2024, wellness has become a pivotal consideration in business travel programmes, with 48% of workplace travellers making decisions influenced by their physical health. Business travel managers booking corporate accommodations across all price points need to factor in a demand for physical and mental wellness offerings. Facilities to look out for include on-site gyms with modern exercise equipment, spa services, healthy dining options, and outdoor space for walking, jogging, meditation, or connecting with nature. Flexibility: Business travel booking is inherently unpredictable. Schedules change, projects overrun, and staff priorities shift, creating knock-on financial implications for business travel plans. And it’s not just employers who want to cover costs. Employees don’t want to be tied into rigid plans either. In 2018, research showed 37% of workplace travellers wanted more autonomy and flexibility when they travel. A business travel accommodation offering flexible booking options is a must. Here’s what to look out for: The ability to modify reservations without penalties: To allow for changes in travel plans including name, date, or duration changes without financial repercussions. Accommodation of special requests or preferences: Seek hotels that can accommodate requests for room upgrades or specific amenities, enhancing overall comfort and helping you enjoy your stay more fully. This is particularly important if you or your employees have specific accessibility needs. Tailored solutions for unexpected changes: Opt for hotels with dedicated staff to provide assistance and support when plans change to ensure a smooth and hassle-free experience, even in challenging circumstances.   Is it Possible to Ask for Late Check-Out? If you’ve got morning meetings and you don’t want to carry your bags with you, it’s worth noting that many hotels are open to accommodating such requests, particularly for workplace travellers. Business travellers often have tight schedules, and a late check-out can provide valuable extra time to wrap up meetings or prepare for departure without feeling rushed. However, it’s essential to communicate your needs with the hotel staff in advance, as availability may vary depending on factors such as hotel occupancy and housekeeping schedules. Booking via the Roomex platform can enhance your chances of securing a late check-out, as we have established relationships with hotels, increasing the likelihood of a favourable answer, and can grant you access to perks and privileges unavailable to independent guests.   What about late night check in hotels? These exist,..

Expense Excellence: Navigating the Challenges of Waste and Fraud

This is a summary of our latest webinar. You can watch the full webinar and check out our latest eBook “The Hidden Health Impact of Traditional Expense Management” here!   Roomex hosted our inaugural webinar of the year, titled Expense Excellence: Navigating the Challenges of Waste and Fraud, on Thursday, February 29th. The event featured panellists Charlie Healy (Director of Payments), Sam Costello (Director of Marketing), and James Redman (Corporate Card Sales Manager – Allstar), who delved into the current state of expenses in the business landscape, the challenges inherent in the traditional expense management process, and proposed practical solutions beneficial for finance teams and travellers alike.   Understanding Expenses in Today’s Market While expenses remain fundamental to business travel, attitudes towards them and the methods of expensing continue to evolve. Towards the end of 2023, Roomex conducted a survey of over 1,230 Finance and HR Managers to explore how companies approach expenses. Key findings highlighted the priority elements in expense management and how travelling employees navigate expenses. An overwhelming 79% of organisations prioritise cost efficiency in booking travel and managing expenses, a trend unsurprising amidst recent inflationary pressures. Delving deeper, data analysis reveals that convenience, prioritised by 53% of organisations, emerges as a crucial factor. However, while many organisations opt for short-term convenience in their chosen expense management methods, these methods may not always align with long-term business optimisation in terms of convenience provided.   Challenges with Traditional Expense Management These solutions may not be optimal for organisations in the long-term, but for travelling employees this short-term convenience may present an inadvertent burden, leading to adverse effect over time. Particularly for low to mid-level employees, the strain of out-of-pocket expenses is amplified amidst the rising cost-of-living. Such financial stress often forces travellers to make compromises in dietary choices and sleep patterns, both of which have an impact on employee well-being and productivity. The stresses of paying out-of-pocket often lead to travelling employees having to choose the unhealthy option, as they mightn’t be able to afford the more expensive, but healthier, alternative. Even when companies provide employees with a meal per diem, we have found that many employees treat such per diems as an addition to their salary, rather than a specific fund allocated towards incurred travel expenses. Stresses around paying out-of-pocket and collecting receipts also lead to travelling employees sleeping less per night than they should be. In an effort to save more money, some employees are electing to stay in accommodations which are situated far away from their worksite or are even choosing to forego sleep and simply drive home after a long day of work. Neither of these choices provide the employee with enough time to rest effectively and remain productive. Additionally, the traditional expense process contributes to productivity loss and susceptibility to fraud within organisations. Financial stress costs the UK economy £28 billion annually, with 25% of employees experiencing cognitive impairment due to such stress. Moreover, administrative efforts in expense reconciliation and reimbursement, couple with the pervasive issue of expense fraud, underscore the need for reform in expense management practices. As pervasive as expense fraud is, many people do not recognise the true extent of it across UK business. Each year, globally, expense fraud costs businesses 5% of their revenue and, in the UK specifically, £140 billion is lost to it annually. While these figures are pretty daunting, there are solutions to expense fraud, which also help to improve the lives of your travelling employees.   Practical Solutions for Improvement Numerous solutions exist to enhance expense management efficiency. However, there are some foundational steps which should precede the adoption of any solution. Companies must first implement or review and update their travel policies. It is important to remember that travel policies are a living, breathing document which should be updated regularly to accommodate any changes that are made internally. They are not something to be forgotten and left to become outdated. Companies with a tight and updated travel policy can save up to 23 per cent, per traveller, off the bat. Furthermore, comprehensive employee training should be undertaken to ensure adherence to policies and mitigate out-of-policy expenses. This step is often overlooked and can lead to employees travelling out-of-policy without even realising it. These are two steps which every company should have enacted before thinking about partnering with an expensing solution or find a solution which will help you enact these two steps. Roomex’s engagement with customers revealed specific requirements within workforce companies that weren’t being catered to by existing expense solution companies:   Real time monitoring With most workforce companies having multiple teams on the road at a time travel managers and finance teams need to know where they are and what they’re spending, particularly in terms of tracking the projects budget. Eliminate paperwork This is a need of the workforce sector and most likely the majority of business sectors. Everyone aims to reduce paperwork and the administration involved in handling it. Custom spend limits Workforce companies often have different tiers of employees, who have different needs and as such, require different levels of spend. This can be due to type of project or project location, either way it is an important factor for workforce companies.   Responding to these needs, Roomex developed the Allowances product, alleviating out-of-pocket expenses through remote receipt uploads and offering real-time expense monitoring for finance teams. Allowances empower employees, reduce administrative burdens, and enhance visibility and control for businesses. You can watch the full webinar and check out our latest eBook “The Hidden Health Impact of Traditional Expense Management” here!  

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