Vendor Updates


2009 Spring
Portsmouth, NH

Amadeus and the EIU Explore the Effect of Corporate Cutbacks on Hotels
Are you tired of reading about the end of the world as we know it? Rich-world economies are sliding into recession; business travel budgets are being cut, RevPAR and occupancy are down. So far, so depressing.

The question technology partner Amadeus is interested in is, what can the industry do about it? And how can Amadeus help? That’s why Amadeus commissioned the Economist Intelligence Unit (EIU) to ask business travellers globally how their travel choices will change in 2009.

With less to spend, what hotel services are indispensable to business guests? What don’t they care for? As business travellers of all budgets shift down a gear, what are the hallmarks of good service? What type of hotel will benefit from this new austere atmosphere?

The report, titled “The Austere Traveller – The effect of corporate cutbacks on hotels,” finds that executives will make fewer, shorter and cheaper business trips in 2009 and switch from luxury extras in favor of basic efficiency and good service. Nearly half (47 percent) of executives surveyed will be taking fewer trips in the next 12 months, and over a quarter (28 percent) expect to downgrade from four and five-star hotels.

With the eyes of their organizations upon them, executives are anxious to make business trips as productive as possible.  Forget luxury gyms, spas and restaurants; instead concentrate on efficient checkin and checkout – cited by 68 percent as one of the best indicators of good service.

Business travellers surveyed were impressively devoted to productivity on the road: Internet connectivity is indispensable to 76 percent of respondents as well as a quiet room (56 percent) or good transport links (54 percent). Good Wi-Fi connectivity is now rated above any other luxury extra.

There is also a flight to trusted brands and the expectation of a common level of good service no matter where you are in the world. A trusted brand with uniform levels of service across locations was cited by 61 percent of executives as a decisive factor when choosing a hotel in 2009.

Amadeus Technology: Helping Hoteliers Adapt Faster to New Market Conditions
So how should hotels react? With higher price sensitivity and lower demand for luxury extras, hotels must focus on getting the basics right. Your Internet service is one of your biggest selling points. Make sure it works and make sure the market knows about them by promoting them through all distribution channels. To this end Amadeus distribution solutions help ensure optimum exposure for hotels on key corporate shopping spaces globally.

Efficient checkin and checkout are a one of the best indicators of good service for today’s business travellers. The Amadeus property management system facilitates just this.

With such focus on the basics, the ability for a hotel to calculate the highest rate the market can take without damaging fragile demand becomes paramount.  Hoteliers using the Amadeus revenue management system can benefit now more than ever from its efficient and accurate use.

Finally, it is not all doom and gloom. An overwhelming majority – 70 percent – are frustrated by restrictions on travel because they see it as an essential part of doing business.

To find out more download the full Ecomonist Intelligence Report at

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