Hotel buyers want lower costs, greater flexibility and more traveler-friendly amenities. But can they have all three? BCD’s Travel Buyer Insights research highlights the challenge facing hotel program managers: 86% prioritize cost control, yet 97% want more flexible cancellation policies and 96% are seeking enhanced amenities and services. As hotel sourcing for 2027 approaches, the priority isn’t simply negotiating more benefits—it’s making sure the benefits you’re paying for are the ones travelers actually use.
5 ways to make sure you’re paying for benefits your travelers actually use
1. Measure utilization, not just negotiated benefits.
Many hotel programs celebrate amenities that appear free on paper. Complimentary breakfast, Wi-Fi, parking and late cancellation policies often show up in RFP reporting as program enhancements. But those benefits only create value when travelers actually use them. Before renewing existing agreements, review available data to understand which amenities drive traveler satisfaction and which go largely unused.
Ask yourself: Are we measuring negotiated value or consumed value?
2. Challenge assumptions about breakfast inclusion.
Breakfast is one of the most commonly negotiated hotel benefits. But including it in every rate may not always generate savings. A 2026 Advito analysis of RFP data found that breakfast-exclusive negotiated rates were frequently lower than comparable breakfast-inclusive rates. That means organizations should evaluate whether traveler demand justifies paying higher rates for breakfast inclusion. Consider:
- Traveler adoption rates
- Market-specific traveler preferences
- The cost difference between inclusive and exclusive rates
- Whether breakfast influences hotel selection
- Potentially paying for meals twice when breakfast or other meals are already included in hotel rates
A targeted strategy may produce better results than a blanket approach.
3. Align cancellation policies with actual traveler behavior.
Flexible cancellation remains a top priority for buyers. Yet traveler behavior often doesn’t align with the most generous cancellation terms available. When Advito analyzed more than 500,000 BCD transactions, they found that only a small percentage of cancellations occurred on the day of arrival, while most cancellations happened several days before check-in. That doesn’t mean same-day cancellation has no value. It means buyers should understand where flexibility matters most and negotiate accordingly.
The key question: Are you paying a premium for flexibility travelers rarely use?
4. Look beyond rate discounts when benchmarking performance.
A negotiated rate isn’t automatically a good rate. Market conditions change throughout the year. A rate that looked attractive during sourcing may become less competitive if market prices soften. Regular benchmarking can help identify opportunities to:
- Re-negotiate rates
- Shift volume to stronger-performing properties
- Adjust preferred hotel lists
- Improve program compliance
When benchmarking your program, it’s key to consider whether amenity inclusions are convoluting the perceived value of rate against market conditions.
5. Use data to define what value means for your program.
There is no universal definition of hotel program value. For some organizations, success means lower room rates. For others, it means traveler satisfaction, flexibility, sustainability goals or program compliance. The most effective programs connect sourcing decisions to clear business outcomes and continually validate whether negotiated inclusions are delivering the intended impact. As the hotel market evolves, the organizations that succeed will focus less on perceived value and more on proven results.
Don’t just negotiate value. Prove it.
Ahead of the 2027 hotel sourcing season, take a fresh look at the benefits built into your hotel program. Is it clear where they deliver measurable results? We can help evaluate the true value of your hotel program.
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