Room for Savings: Optimizing Hotel Spend - Carlson
Room for Savings: Optimizing Hotel Spend - Carlson
Room for Savings: Optimizing Hotel Spend - Carlson
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Seven steps to optimize hotel spend > Negotiate effectively<br />
Figure 94: One company obtained an additional 6% discount after three rounds of<br />
negotiations<br />
Difference between initial offer and final rate negotiated<br />
by Company C at a preferred property in Paris<br />
22<br />
15<br />
-8%<br />
-6%<br />
US$<br />
257<br />
220<br />
6% further<br />
discount gained<br />
in third-round<br />
negotiations<br />
<strong>Room</strong> rate<br />
without negotiations<br />
Initial offer<br />
(RFP response)<br />
Second-round<br />
negotiations<br />
Third-round<br />
negotiations<br />
Negotiated rate<br />
Source: CWT Travel Management Institute<br />
Figure 95: <strong>Hotel</strong>iers may cut rates significantly after several rounds of negotiations<br />
Difference between initial offer and final negotiated rate<br />
%<br />
0<br />
Company M<br />
Company H<br />
-1<br />
-2<br />
-3<br />
-3.8<br />
-3.3 -3.6<br />
-1.6<br />
-4.6<br />
-2.9<br />
-4<br />
-5<br />
-6<br />
-7<br />
<strong>Hotel</strong>s in program in 2007 <strong>Hotel</strong>s new to program in 2008 All hotels<br />
Source: CWT Travel Management Institute<br />
101