High ina�on – currently above 6.29%
— and market nuances complicate hotel
sourcing here. Chains represent only 20%
of the hotel database, primarily in major
ci�es — so access to non-GDS content,
primarily independent hotels, is key.
Outside major markets, rela�onships are
vital as hoteliers are “more comfortable
signing agreements” with representa�ves
► MPD shows rates in Brazil are up slightly
at 0.67% compared to last year. Rates
for HRS sourcing clients declined by an
average of 4.4% compared to last year.
► Hotels in Brazil that have a direct rela�onship with HRS offered rates that are
down an average of 5.9%.
HRS’ nego�ated rates were down 3% in
Sao Paulo, and 9% in Rio.
HRS solicited rates from 30,000+ hotels in
China for the 2017 RFP season. Booking tools
and open booking / duty of care are emerging
as local travel manager concerns. In smaller
manufacturing centers, chains represent just
20% of inventory, but are usually in highest
demand. Chinese business travelers o�en
place a higher value on the pres�ge of a
property, with travel managers taking that into
account when sourcing. Rela�onships are vital.
► MPD shows rates in China up 4.47% over
last year. Rates for HRS sourcing declined
by an average of 2.4% compared to 2016.
► Hotels in China that have a direct rela�onship with HRS offered rates that are
down an average of 3%.
Local rela�onships and market exper�se
delivered savings in two key ci�es. In
Shanghai, MPD rates show a 2017 increase of
5.35%. HRS’ nego�ated rates for 2017 were
essen�ally at at -0.75%. Beijing’s MPD rates
were up 6.11%, while HRS’s nego�ated rates
increased a meager 0.7%.
The hotel market in India is more mature
than prior years and was essen�ally at for
2017. Again, on-the-ground rela�onships
in this market tend to unlock more savings.
HRS sees more requests for corporate
housing in India, as well as unique elements like requests for drivers.
► MPD rates in India are essen�ally at at
an increase of 0.33% in 2017. HRS sourcing clients saw a similar outcome, with
the average increase limited to .08%.
► Hotels in India that have a direct rela�onship with HRS offered rates that are
down an average of 1.75% as compared
to a year ago.
Brazil, China, India
Sourcing 750,000+ nego�ated rates and 12M room nights for
2017 for clients worldwide, HRS has unique local knowledge
about supply, demand, procurement prac�ces and market
nuances that deliver the best rates.
Each quarter, HRS develops a baseline “marketplace development” rate for each major city. HRS measures this MPD
rate against rates offered by hotels and savings registered by
clients. Factors include booked rates, listed public rates and
nego�ated rates for the next 12 months. Tac�cs and trends
for fast-growing regions of Brazil, China and India follow.
Data indicates that clients who used HRS sourcing
saved more than typical industry results, with
no�ceably more savings opportuni�es in China
and Brazil. Hotels that have a direct rela�onship
with HRS offered lower corporate rates to HRS
clients, genera�ng higher year-over-year savings
Learn more at
FOUR STEPS TRAVEL MANAGERS CAN TAKE TO DRIVE SUCCESS
➊ Meet with internal stakeholders at these des;na;ons, and leverage their
on-the-ground knowledge, travel projec;ons and data to determine if
you’ve got enough volume to nego;ate.
➋ Invest in hotel rela;onships locally, via corporate colleagues and respected
outsourced en;;es like HRS, as it can be a key driver in obtaining discounts.
➌ Narrow targeted hotels for the RFP, mixing chains and business-grade
independent proper;es as appropriate.
➍ Track and measure past and ongoing performance, and share the metrics
with hotel partners to ensure goals are met and adjustments are allocated
for when necessary.