Room for Savings: Optimizing Hotel Spend - Carlson

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Figure 112 shows how an OBT can be configured so the company’s primary preferred hotels appear at the top of the list when travelers make a search. If those hotels do not suit their needs, travelers can click on “more hotels” to view secondary preferred hotels or chains and the best available rates at other hotels in the TMC database (including properties that are not available via GDSs). The OBT can also provide information on any cancellation penalties and complementary amenities, as well as remind travelers of rate caps, authorized categories and other policy points. When customizing the OBT set-up, it is important to strike the right balance so that travelers are encouraged to comply with the preferred hotel program while enabling them to book at other hotels if necessary. Figure 112: Companies can make hotel booking easier for travelers by providing maps of preferred hotels near frequently visited sites Source: CWT Travel Management Institute
Seven steps to optimize hotel spend > Improve traveler compliance Empower TMC counselors to enforce compliance at the time of booking. Depending on the level of involvement defined by the client company, travel counselors at the point of sale can recommend compliant options, engage in a pre-trip approval process, take a noncompliant booking and file a non-compliance report, or refuse to make a non-compliant booking. They can also ask travelers to make their booking online if the company’s policy requires it. Today, many companies could benefit from granting more authority to traveler counselors. Fifty-seven percent ask the TMC simply to provide a policy reminder, compared to only 22 percent who require them to notify management of noncompliant requests or ask for authorization, and 5 percent who allow them to refuse non-compliant bookings (Figure 113). Figure 113: 84% of travel managers empower the TMC to promote compliance during the booking process Source: CWT Travel Management Institute Based on a survey of travel managers (93 responses) 119
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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
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Identifying properties and location
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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 116 and 117: The survey also indicates that trav
Page 118 and 119: Explain the stakes. Price-conscious
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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Room for Savings: Optimizing Hotel Spend - Carlson

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