With the first quarter of 2025 in the rear-view mirror, corporate travel managers are already grappling with new, emerging trends in hotel sourcing. While rising rates were forecasted, newer developments will also need to be factored into their plans for the year.

Staying ahead of the latest trends will be critical to achieving success in today’s increasingly uncertain business landscape and in ensuring organisations are able to negotiate the best options for their customers.

From an analysis of over 82,000 requests for proposal (RFPs) from global buyers, Amex GBT has identified three key developments that will impact how companies manage their hotel programmes this year.

India supply issues

Demand surging, supply struggling India has become a key market of focus for 2025. The country’s continued economic growth trajectory has driven double-digit room rate increases in major cities such as Chennai (+19%), Hyderabad (+13%), and New Delhi (+11%).

However, challenges remain as there is a growing imbalance between this demand and limited supply, which could impact prices as the latter gets constrained. The number of hotel rooms under development in India remains below pre-2009 levels, exacerbating the strain on inventory. This creates a highly competitive environment where securing preferred rates and availability is becoming increasingly difficult, but it’s a barrier those whose customers travel frequently to India will need to reckon with.

Rise in dynamic rates

The shift towards dynamic and non-last room availability (NLRA) rates accelerates.

The hotel industry has continued to hold firm in shifting rate types away from last room availability (LRA) and towards non-last room availability or dynamic offerings.

Hotels are increasingly restricting access to negotiated rates, as evidenced by an increase in dynamic bids which jumped from 11% to 17% year-on-year, and LRA rates now making up just 49% of offerings, an annualised decrease of 2%.

For corporate travel managers, this means securing guaranteed availability during peak times is becoming more challenging and costly.

The rise in NLRA and dynamic rates reflects the broader trend of hotels adapting to changing market conditions by promoting greater price competition during busy periods, which in turn requires a more targeted approach from travel managers.

They need to consolidate with key properties where LRA rates are a must for the destinations they prioritise, while also maintaining a blended programme with a range of lodging content.

Consolidation in search of greater value

Already, global hotel rates have risen +2.6% – in North America it’s even higher at +4.6% – and travel managers are adjusting their hotel sourcing strategies accordingly by consolidating their programmes.

This aims to achieve deeper discounts through a more carefully-curated selection of properties rather than casting the net far and wide. This has been reflected by a 12% drop in overall bids presented, highlighting demand for smaller programmes that are more tailored to specific needs.

This consolidation increases the chances of securing LRA rates, but these will need to be supplemented by additional coverage to ensure a balanced, comprehensive offering. Adopting a blended strategy in this way helps to ensure ample availability and content for travellers.

Looking ahead

As we dive into the rest of 2025, corporate travel managers must remain acutely aware of these shifting dynamics within the hotel sourcing landscape.

Be it rising demand in new locales or the changing preferences of hotels and groups, maintaining competitiveness in a rapidly changing landscape requires being agile enough to adapt to trends as they emerge. This ensures they can provide a range of high-quality options for their travellers while maintaining cost efficiency.

Meeting customer expectations is always critical to any business, and that means having an understanding of how to meet their demands in a hotel sourcing environment that never stays still.

Cameron Spence is Global Practice Line Lead (Hotels) at American Express GBT