Room for Savings: Optimizing Hotel Spend - Carlson

Seven steps to optimize hotel spend > Negotiate effectively
How to make the final selection?
When making a final selection among hoteliers’
proposals, travel managers need to consider a
number of factors:
Total cost of stay. For a fair comparison, the
total cost per room night should be
considered, including room rate, amenities
(some of which may be included in the
negotiated rate), and the typical cost of
transport between the hotel and the main
business destinations. Hotels that are more
conveniently located not only suit travelers
better but may cost less when taxi charges
are taken into account, as shown in Figure
99. In addition, buyers should factor in the
benefit of last-room availability agreements.
Figure 99: The cost of transport can be significant and impact the choice of hotel
Cost of stay including taxi fares – 2008
(Traveler from Company H visiting the company’s office in Paris)
Hotel C
Company H
US$
300
250
200
53
The most
expensive hotel is cheapest when
taxi fares are taken into account
56
Hotel A
150
100
177
199
221
50
Hotel B
0
Hotel A Hotel B Hotel C
Room rate + breakfast
Taxi fare
Source: CWT Travel Management Institute
105