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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How to calculate your company’s<br />
transient hotel spend:<br />
three methods using TMC data<br />
1. <strong>Hotel</strong> spend = 76% of air spend<br />
This calculation is based on the “top-down”<br />
global market analysis described earlier ( i.e.,<br />
39% ÷ 51% as seen in Figure 14, Page 22). It<br />
provides a rough estimate only.<br />
2. <strong>Hotel</strong> spend = total room nights generated<br />
by transportation x average room rate<br />
This method starts with transaction data on air<br />
trips involving overnight stays to calculate the<br />
total of room nights, which are multiplied by the<br />
average room rate paid by the company<br />
worldwide.<br />
A further 10-40 percent can be added to this<br />
total to include trips made by rail and car,<br />
depending on the company’s travel patterns.<br />
3. <strong>Hotel</strong> spend = total captured through TMC<br />
bookings matched with corporate credit card<br />
data<br />
This calculation is provided by consolidated data,<br />
through such solutions as CWT Agency+Card<br />
Reporting. This method is the most accurate, as<br />
described in detail on Pages 33-34.