Room for Savings: Optimizing Hotel Spend - Carlson

A complex market
The complexity of the hotel market can make managing hotel spend seem particularly
challenging. A vast number of suppliers, a diverse offering, different pricing strategies and
multiple distribution channels are key features that travel managers need to understand
when designing their hotel sourcing strategy and travel policy.
A vast number of suppliers
Business travelers stay at an estimated 250,000
hotels around the world. These include both
independent hotels, which dominate the market
in all regions except North America, and chain
properties, as shown in Figures 4-5. In any given
city, corporate buyers and travelers may have a
wide choice of suitable options. The largest
companies can have hotel spend at hundreds or
even thousands of properties every year, making
effective sourcing particularly challenging. Working
with chains can reduce this complexity, although
the best deals still tend to be negotiated at a
property level, even when properties belong to a
chain.
Figure 4: Number of hotels used by business travelers per region and percentage of all
hotels worldwide
Region
Number of
corporate hotels
Percentage of
all hotels
Europe, Middle East & Africa 105,000 42%
North America 72,500 29%
Asia Pacific 50,000 20%
Latin America 22,500 9%
Total 250,000 100%
Source: CWT Travel Management Institute