HRS introduces new Consortia Rate for meetings

HRS Launches New Meetings Consortia Rate to Help Spur European Corporate Group Volume   

As Procurement Activities Ramp Up, New Rate Program Facilitates Increased Access to Group Volume Opportunities while Automating the RFP Process via Self-Service Technology  

Cologne, Germany – 26 October, 2022 – HRS, the leading global corporate travel and payment technology platform, today introduced a new Meetings Consortia Program to support the recovering corporate meetings and group segment in Europe. The Meetings Consortia Program, with its unique Meetings Consortia Rate (MCR), provides access to preferred rates covering the main needs for lodging and event packages in an intuitive and efficient solution that benefits corporations and their preferred hotels. It also facilitates reduced processing time and enhanced bidding opportunities for hotels competing for accelerating corporate meeting volume in 2023. 

HRS works with 35 percent of global Fortune 500 on some element of their lodging/meeting programs. With the MCR rate, HRS now offers corporations an unmatched array of corporate rates, covering transient, longstay and now group & meeting segments. Considering rate increases impacting corporate programs globally, this timely addition opens new avenues for spend consolidation and savings. 

Many companies still struggle to gain a thorough understanding of their meetings-related expenditures, which can account for 30 percent or more of overall travel spend. Research published by GBTA, MPI and HRS found that when companies sourced simple meetings via unmanaged scenarios, more than three-quarters – 77 percent! – admitted to booking through consumer channels. Moreover, over the course of 2022, most corporate meetings are smaller gatherings. HRS meeting data through the third quarter of this year found that 85 percent of booked meetings were for 50 or less participants. 

Multiple Headwinds – Especially Rate Increases – Face Companies as They Plan for 2023 

At a time when recent research from GBTA illustrates that 40 percent of companies have reduced their office space and hybrid working scenarios abound, the meetings segment is recovering in an uneven fashion. In Europe, inflation, recession and energy challenges make 2023 forecasting more difficult.  

What’s more, average rate increases in key destinations are stunning. HRS data on public group rates from this past July show year-over-year increases as high as 19 percent in Hamburg and 16 percent in Berlin. While figures are not that steep in France, the increases are still tough for corporates to absorb. 

Facts & Savings Examples RE the New HRS Meetings Consortia Rate 

HRS is responding to this unique procurement moment. Working with clients and their preferred hotels, HRS has already driven notable savings via negotiation of new MCR rates. For example, full-day meeting package increases in Hamburg were held to six percent, versus 27 percent via public rates. As companies increase meeting frequency in 2023, the cumulative savings project to be substantial. 

Driven by data, the MCR rate promises to trigger new dialogue that ultimately spurs meeting and group bookings. More than a percentage discount, the MCR rate leverages the negotiating weight of HRS’ broad client base to arrive at specific meetings rate packages suited to the evolving requirements of corporate lodging programs. This approach to negotiated rates is keeping rate increases below 10 percent for HRS clients in many destinations.  “Our focus on the needs of lodging and meetings programs drives this innovation. The MCR rate and the process by which corporate event planners can access it for bids is a timely addition as companies progress with 2023 plans,” said Tobias Ragge, CEO of HRS. “In consultation with clients, we believe the MCR rate will cover 90 percent of the typically requested items for small meetings. For suppliers, no other hotel platform provider is delivering this combination of pioneering technology and financially beneficial models to hotels as we all work together to help our industry recover from the pandemic.” 

MCR Rates Drive Wider Reach, Process Automation & Sales Scenarios for the Hotel Community 

Hotels in many locations, typically with smaller sales teams, stand to gain from this invitation-only program. Beyond savings from automation tied to this initiative, HRS is supporting the recovering hotel community via a reduced commission (down from 13 to 10 percent) in all European markets.  

HRS’ initial rollout of the Meetings Consortia Program will take place in France and Germany, with plans to further deploy the offering to more European locations and North America in 2023. Corporations and hoteliers are encouraged to engage with their HRS contact to learn more about how the MCR Rate can benefit them for 2023 lodging/meeting negotiations. They can also learn more details about the specifics of MCR rates via this link on HRS’ website.

about HRS

HRS is reinventing the way businesses and governments work, stay and pay in today’s dynamic global marketplace. HRS’ advanced platform technology is extending its reach beyond hospitality to meetings, office space management, payment efficiency and crisis recovery. Beyond cost savings in the global post-pandemic economy, HRS clients gain from an unrivaled focus on essential aspects including safety, security and satisfaction. HRS is also recognized for its award-winning Green Stay Initiative, technology that helps corporate hotel programs achieve their NetZero targets, and its groundbreaking Crew & Passengers Solution, which leverages automation to elevate experiences for air and rail operations. Founded in 1972, HRS works with 35 percent of the global Fortune 500, as well as the world’s leading hotel chains, regional hospitality groups and payment providers. More information at www.hrs.com/enterprise