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Beyond the Bed — Four Ways to Unlock Value in Hotel Contracts

Corporate hotel contracts have traditionally focused on one thing: the rate per night. While securing the best price on the room remains essential, it’s no longer enough. In a world where travel programs are measured on more than just savings — including sustainability, employee experience, and flexibility — procurement leaders are realizing that true value lies far beyond the bed.

The most effective travel programs today are those that negotiate holistically — factoring in amenities, services, sustainability data, cancellation terms, and technology integration. This isn’t about adding complexity. It’s about building contracts that are smarter, more flexible, and aligned with the needs of both the business and its travelers.

With platforms like HRS Connect, companies are now equipped to structure hotel contracts that deliver cost-efficiency and strategic impact — while setting the stage for better supplier relationships in a changing travel landscape.

1. Prioritize Flexibility Over Static Discounts

In today’s unpredictable environment, static, inflexible rate agreements are a liability. Traveler plans change. Meetings shift. Remote work adds volatility.

Progressive travel managers now look for:
• Flexible cancellation policies without penalties
• Last-room availability guarantees
• Dynamic pricing tiers that adapt to demand, while staying within budgeted thresholds

With HRS Copilot, buyers can benchmark rates across markets in real time — allowing them to build contracts that incorporate flexibility without sacrificing control. Flexibility no longer needs to mean unpredictability.

2. Include Amenities That Drive Satisfaction and Compliance

One of the most overlooked areas of hotel contracting is amenities. Perks like breakfast, Wi-Fi, early check-in, or fitness center access can drastically improve the traveler experience — and reduce out-of-pocket costs.

Procurement teams using persona-based insights via HRS Connect can identify which amenities matter most to specific traveler types and build them into contracts. This not only increases satisfaction but boosts in-channel compliance.

If the approved hotel includes everything a traveler needs, there’s far less incentive to go off-policy.

3. Embed Sustainability and ESG Clauses

Sustainability is no longer an optional value-add — it’s a formal reporting requirement for many global companies. Yet many contracts still fail to include ESG performance criteria.

Forward-thinking procurement leaders are now including:
• Mandatory participation in programs like HRS Green Stay
• Carbon emissions disclosures (CO₂ per room night)
• Energy efficiency or waste reduction targets
• Annual sustainability scorecard reviews

These clauses do more than satisfy internal reporting. They build alignment between corporate goals and supplier behavior — and ensure hotels that underperform can be replaced based on more than price alone.

4. Strengthen Data and Technology Provisions

Hotel contracts often ignore a critical question: how will the supplier share data?

For AI and automation tools like Copilot to deliver real value, buyers need accurate, timely data from hotel partners — including rate audits, availability monitoring, and ESG metrics.

Contracts should include provisions that:
• Require hotels to submit Level 3 data
• Commit to maintaining up-to-date availability in corporate booking channels
• Support virtual card and direct settlement models
• Participate in real-time audit and feedback loops

The better the data flow, the more powerful the insights — and the easier it is to optimize programs throughout the year.

HRS Perspective: Unlocking Strategic Value in Every Agreement

At HRS, we help companies move beyond rate-focused contracting toward smarter, data-enabled agreements that drive real impact.

With Connect and Copilot, procurement leaders can:
• Compare hotel partners across price, experience, and sustainability
• Track compliance and traveler satisfaction post-contract
• Rebalance portfolios in real time based on actual performance
• Hold suppliers accountable across multiple KPIs — not just room rates

Every line in a hotel contract is an opportunity to deliver value. By broadening what gets negotiated, companies future-proof their programs — creating partnerships that are resilient, measurable, and aligned with modern travel goals.

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