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Hoteliers strain to maintain, and gain, Corp. biz in '02. (Special Report: Top U.S. Hotel Chain Survey).

Article Excerpt
For the second consecutive year, the U.S. lodging industry in 2002 faced a much more precarious environment than either hoteliers or travel managers could have imagined in the halcyon days of 1999 and 2000. While both occupancy rates and room revenues in 2001 suffered as a result of the sluggish economy and widespread cutbacks in business travel, occupancy rates in many gateway cities rose in 2002. Room revenues, however, remained depressed, the result of rampant price cutting intended to drive demand. In hindsight, though, many hotel executives believe the cuts were overly drastic.

Seen through this prism, the Business Travel News Top U.S. Hotel Chain Survey is especially informative this year for the insider perspective it provides into how buyers view the hotel brands they deal with across the price point spectrum. During the past two bidding seasons, buyers have grown accustomed to having greater leverage in negotiations with hotels over rate and amenities. The survey shows buyers to be highly demanding and most critical when it came to assessing the quality of the hotels they selected for their travelers. Of equal importance, however, was whether buyers felt they were dealt with professionally throughout the negotiating process.

Still, as 2002 progressed, buyers came to understand that their newfound leverage in many cases was illusory, if they...