Room for Savings: Optimizing Hotel Spend - Carlson

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The survey also indicates that travelers who book non-preferred hotels are more priceconscious than other travelers and stay at lower-category hotels (Figure 106). Moreover, they are more likely to be domestic travelers, supporting the point made earlier (Page 71) that short-haul travelers are happy to stay in lowercategory hotels than long-haul travelers. Travel managers may wish to adjust their programs to include a greater number of lower-category hotels if necessary. When travelers book outside the preferred channels, they rarely use Web booking sites or hotels’ branded Websites, contrary to popular belief. Instead, they prefer to contact hotels directly by phone, email or fax (Figure 107). Figure 106: Travelers who book non-preferred hotels tend to stay at lower- category properties Source: CWT Travel Management Institute Based on a survey of travelers (3,682 responses) Figure 107: When travelers book outside preferred channels, they rarely use Web booking sites or hotels’ branded Websites Preferred booking channels Non-preferred booking channels Sources: CWT Travel Management Institute, CWT <strong>Hotel</strong> Solutions Group
Seven steps to optimize hotel spend > Improve traveler compliance Actions to improve compliance In addition to monitoring traveler behavior through relevant data, a number of actions can help improve compliance: Implement clear policy mandates. As seen on Pages 47-61, a clear policy is the cornerstone of effectively managed hotel spend. Travel managers must provide enough instructions so travelers know what to do in most booking situations, without burdening them with too much, potentially confusing in<strong>for</strong>mation. Whenever possible, mandates, rather than simple recommendations, can make a significant difference to how often travelers use preferred hotels and preferred booking channels. Figure 108: Travelers who have easy access to their company’s hotel directory tend to book preferred hotels more often Ensure the travel policy and preferred hotel directory are up-to-date and easily accessible to travelers and travel arrangers. Travelers who say they can easily access their company’s hotel directory select preferred hotels more often than those who say they do not have easy access. Yet awareness of the preferred hotels is low compared to the travel policy: only 52 percent of travelers say they know how to access an up-to-date hotel directory, compared to 74 percent who can easily access an up-to-date travel policy (Figures 108-109). Figure 109: Only 52% of travelers say they can easily access their company’s directory of preferred hotels, while 74% say they have easy access to their travel policy Don’t know Non-preferred hotel Preferred hotel Don’t know Company does not have a preferred hotel directory No Yes Source: CWT Travel Management Institute Based on a survey of travelers (5,016 responses) Source: CWT Travel Management Institute Based on a survey of travelers (5,016 responses) 115
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Room for Savings: Optimizing Hotel
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Contents Introduction Overview ....
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Research objectives This CWT resear
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Figure 1: Breakdown of surveyed com
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Key findings in brief The research
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changes. In addition to providing t
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A complex market The complexity of
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A lack of global standards to defin
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Complex pricing Hoteliers use diffe
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Figure 10: Rates remain fairly cons
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Figure 12: Most corporate hotel boo
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Data on hotel spend is however, not
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How to calculate your company’s t
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2. Twenty-one percent savings throu
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Many organizations have yet to opti
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GDS auditing It is important to ens
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1. Consolidate data Travel managers
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Figure 27: Combined TMC and credit
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Figure 28: Recommended data fields
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Hotel category: not the most import
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“No-frills” booking When it com
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In fact, travelers often draw on th
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A number of differences between the
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SUMMARY Understanding traveler need
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2. Ask travelers to use serviced ap
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Figure 41: Recommended rules for bo
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Figure 43: Rates are on average 18-
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Figure 46: In a rate benchmarking e
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5. Mandate booking at least two wee
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6. Address extra charges Travelers
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SUMMARY An optimal hotel policy cov
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4. Optimize the preferred hotel pro
Page 66 and 67: Identifying properties and location
Page 68 and 69: Considering local market conditions
Page 70 and 71: Figure 59: One company could save 6
Page 72 and 73: Figure 61(continued): The share of
Page 74 and 75: Figure 63: Hotel stays of at least
Page 76 and 77: Deciding between existing preferred
Page 78 and 79: Figure 69: Companies that retain at
Page 80 and 81: SUMMARY Key points for optimizing a
Page 82 and 83: 5. Negotiate effectively Negotiatio
Page 84 and 85: Chain-wide agreements, as the name
Page 86 and 87: Chain-wide deals tend to offer smal
Page 88 and 89: There is, however, a risk associate
Page 90 and 91: Despite this reticence, 40 percent
Page 92 and 93: Figure 83: Another company’s ARR
Page 94 and 95: Last-room availability A last-room
Page 96 and 97: LRA is common in corporate contract
Page 98 and 99: Benchmark rates. Companies commonly
Page 100 and 101: Companies can consolidate volumes i
Page 102 and 103: Leverage city caps. Experience sugg
Page 104 and 105: Consider renegotiating flat rates d
Page 106 and 107: Buyers should use the full range of
Page 108 and 109: Hoteliers’ performance. A hotelie
Page 110 and 111: Ensure your travel management team
Page 112 and 113: 6. Improve traveler compliance The
Page 114 and 115: Understanding why travelers book ou
Page 118 and 119: Explain the stakes. Price-conscious
Page 120 and 121: Figure 112 shows how an OBT can be
Page 122 and 123: Require travelers to book their hot
Page 124 and 125: Investigate the reasons for noncomp
Page 126 and 127: To ensure that the agreed condition
Page 128 and 129: GDS rate squatting. Regular GDS aud
Page 130 and 131: Rate audits pay A rate audit conduc
Page 132 and 133: Tracking traveler compliance Compan
Page 134 and 135: SUMMARY Tracking performance: Compa
Page 136 and 137: Appendices Glossary The following i
Page 138: For more information about how CWT
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