Introduction

I’m excited to share a recent podcast I recorded with Brian Macaluso, Vice President of Global Sales for Sonesta International Hotels.  Brian is the first guest I've hosted on the podcast that isn’t a buyer or a consultant.  As the number of subscribers to this newsletter continues to grow, and the complexity of managed corporate hospitality continues to evolve, I think it’s vital to get the hotelier’s point of view.

Throughout our discussion (see links below to the episodes), we discuss the dynamics of corporate travel, trends in hotel procurement, the impact of technology, the importance of loyalty programs, and the growing emphasis on sustainability in the hospitality industry.

I didn’t realize the history of the brand until its founder A.M. (Sonny) Sonnabend, was inducted into the BTN Group's 2025 Business Travel Hall of Fame this past December along with the CEO of HRS Group, Tobias Ragge.  Sonesta was founded in 1937 and will turn 90 next year.  In our conversation, Brian shared that Sonesta comes from combining the names “Sonny” and his wife, “Esther.”  If you say Esther with a Boston accent, you basically land on Sonesta.

Brian joined the company in 2021, right as the company was coming off a period of rapid expansion.  Through our discussion, he shared insights on how Sonesta and other suppliers are adapting to the changing landscape of corporate travel and what corporate buyers should be doing differently as procurement evolves.

Brian’s view is that the buyer/supplier relationship is becoming more direct, more data driven, and more demanding in the best way. Buyers are more informed than they have been in the past. They are looking closely at whether a negotiated program actually performs in market, not just whether it looks good in an RFP response.

He pointed to a core issue that has created friction across the hotel landscape: availability and pricing consistency. Corporate buyers want to know that a negotiated rate is actually available when travelers book, and that it is truly competitive compared to what can be found elsewhere. The challenge, as Brian described it, is that the marketplace has more pricing variation than ever, with OTAs and other channels introducing different structures that can make apples-to-apples comparisons difficult.

That is one reason dynamic pricing continues to show up in corporate discussions. Brian described how some buyers have leaned into dynamic pricing because it gives flexibility in markets where volume may not justify a traditional fixed rate. At the same time, it can introduce confusion, especially when travelers see changing prices and question whether the corporate program is delivering value.

Through our conversation, we discussed how corporate policy and compliance expectations are still shifting. A few years ago, many programs were heavily focused on getting travelers back into compliance. More recently, Brian is hearing that some companies are putting more responsibility on travelers to manage their own budgets, which can reduce the role of strict compliance.

Three recommendations for corporate buyers

Based on Brian’s advice, here are three practical moves buyers can make to strengthen negotiations and improve program outcomes.

1. Push for transparency early, not after the negotiation starts Brian repeatedly emphasized transparency as the foundation for a better partnership. Buyers who clearly define what they need, where they need it, and what success looks like reduce the back and forth that turns sourcing into a constant renegotiation. We have seen this at HRS where we look at previous spending patterns.  The clearer the requirements, the more accountable both sides become. Bringing your most relevant data - across all segments – at the start of the negotiation also helps with this objective.
2. Make “preferred” mean something again Brian agreed with me that the term “preferred” is often overused. His recommendation was to treat preferred status as something earned and targeted, not broad or automatic. In practice, that means building preferred agreements around the locations where volume is highest and where travelers need the most support. A chainwide discount can help fill gaps, but a preferred partnership should be tied to specific markets, measurable outcomes and deeper relationships.
3. Use technology to speed decisions, but keep the relationship human Brian sees AI and technology as real forces in the industry, both for buyers and suppliers. He is hearing buyers use AI to do ROI analysis on trips and to speed up booking workflows. On the supplier side, technology can help surface demand signals like new office openings or new facilities that will change travel patterns. But his caution was to not let technology replace the personal connection. Hospitality is still a relationship business, and the best outcomes come when tech improves communication rather than removing it.

What Brian believes sets Sonesta apart

Brian positioned Sonesta around flexibility and partnership alignment.  He also highlighted the importance of loyalty. In his view, loyalty programs matter because the first stay is hard to win, and loyalty is how you earn repeat business. For corporate programs, loyalty becomes a practical lever because it influences traveler satisfaction and helps reinforce preferred behaviors when travelers have choices…as well as when emergency scenarios arise and rooms need to be secured.

Finally, sustainability continues to rise in importance. Brian shared that ESG requirements are now frequently included in corporate RFPs. Buyers are asking about carbon footprint, ESG processes, and whether suppliers work with ESG providers. While he has not yet seen many cases where the absence of ESG policies automatically disqualifies a supplier, he views the direction as clear: ESG expectations are becoming part of standard evaluation and will not go away. Sonesta has leaned into this by publicly sharing its ESG initiatives and related policies.  HRS and our Green Stay initiatives is aligned with this approach.

In Summary

Brian’s experience in hospitality was apparent.  To summarize our conversation:

Buyers want partners who can deliver what they promise, consistently, in the markets that matter most.Technology can help everyone see the truth faster.Transparency and follow-throughs are what turn visibility into trust.

I encourage you to subscribe to Spotify or Apple Music to listen and watch the full episode.

Watch on Spotify: https://okt.to/UYJhKb

Listen on Apple Music: https://okt.to/N64nVF

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