Room for Savings: Optimizing Hotel Spend - Carlson

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Require travelers to book their hotel at the same time as transportation whenever possible. Most air travel (which is used <strong>for</strong> 70 percent of trips) is booked through an online booking tool or TMC counselor. Requiring travelers to book rooms at the same time can there<strong>for</strong>e be an effective way to increase the use of preferred booking channels, which in turn tends to increase the use of preferred hotels. Ensure follow-up with non-compliant travelers. Only a minority of travelers say they have to justify non-compliance: 12 percent of those booking outside the preferred channels and 48 percent of those booking a non-preferred hotel (Figure 114). Yet a large majority of travelers say companies are right to ask them to stay at preferred hotels and use preferred booking channels (84 percent and 89 percent respectively, as shown in Figure 115). Most travel managers say non-compliance generates a response (e.g., an email reminder to travelers) and some invoke tough measures such as withholding reimbursement of expenses or invoking disciplinary action (Figure 116). Figure 114: Most travelers say they do not have to justify non-compliance No Unlikely Probably Yes Source: CWT Travel Management Institute Based on a survey of travelers (1,884 responses / 580 responses)
Seven steps to optimize hotel spend > Improve traveler compliance Figure 115: Travelers acknowledge companies are right to ask them to use preferred hotels and preferred booking channels Source: CWT Travel Management Institute Based on a survey of travelers (5,016 responses) Figure 116: 69% of travel managers follow up on non-compliance Most likely measures taken when a traveler breaches policy without reasonable justification No measures are taken 31 No measures Traveler is flagged in an exception report and asked to respect policy by the travel management team 22 Traveler is flagged in an exception report and asked to respect policy by his/her manager Traveler is flagged in an exception report without further action 19 18 Mild measures Travel expenses are not reimbursed Disciplinary measures are taken 3 7 Harsh measures 0 10 20 30 40 Travel managers (%) Source: CWT Travel Management Institute Based on a survey of travel managers (97 responses) 121
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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
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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 120 and 121: Figure 112 shows how an OBT can be
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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