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 > Track per<strong>for</strong>mance<br />
Figure 122: Audits showed that one company paid more than its negotiated rate <strong>for</strong> 34% of<br />
its room nights at a preferred property<br />
Results of LRA audit<br />
(Company N at a hotel in Paris)<br />
<strong>Hotel</strong>s that provide LRA<br />
<strong>Room</strong> nights booked under<br />
the company’s code<br />
<strong>Room</strong> nights booked under<br />
another code<br />
Paid rate<br />
> negotiated rate<br />
Paid rate<br />
< negotiated rate<br />
Paid rate<br />
> negotiated rate<br />
Paid rate<br />
< negotiated rate<br />
24%<br />
of room nights<br />
55%<br />
of room nights<br />
10%<br />
of room nights<br />
11%<br />
of room nights<br />
34%<br />
of room nights<br />
Breakdown of incorrect rates<br />
Reason<br />
Recommendation<br />
<strong>Room</strong> nights<br />
booked<br />
using correct<br />
GDS code<br />
but more<br />
expensive<br />
than the<br />
negotiated<br />
rate<br />
(24% of<br />
room nights)<br />
Standard<br />
rooms<br />
(37% of room<br />
nights)<br />
Deluxe rooms<br />
(63% of room<br />
nights)<br />
Rate or tax incorrectly<br />
loaded into GDS<br />
Traveler asked <strong>for</strong> a<br />
upgrade<br />
<strong>Hotel</strong> closed its standard rate<br />
Unavailability of<br />
standard rooms<br />
Other reasons<br />
(breaching the LRA contract)<br />
Discuss with the<br />
hotelier<br />
Continue LRA audits<br />
En<strong>for</strong>ce the travel<br />
policy and discuss<br />
results with the hotelier<br />
Extend the program<br />
to ensure maximum<br />
availability<br />
Continue LRA audits<br />
Sources: CWT <strong>Hotel</strong> Solutions Group, CWT Travel Management Institute<br />
Based on 14,962 room nights<br />
129