Room for Savings: Optimizing Hotel Spend - Carlson

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Figure 61(continued): The share of hotel categories used varies between sectors and companies in the same sectors Total room nights by hotel category (2008) Banking & finance 30% 22% 15% 57% 55% 47% 74% 40% 58% 65% 71% 47% 41% 43% 52% 26% 27% 2% 2% 6% 5% 7% 8% U S G M W X Y Average Company 7% Petroleum, energy & mining 45% 16% 29% 25% 25% 48% 62% 68% 70% 65% 7% 9% 6% 14% 9% 0% 0% 1% 0% 1% Z AA J AB Average Company Economy Standard First Deluxe Source: CWT Travel Management Institute Based on transaction data (383,172 transactions)
Seven steps to optimize hotel spend > Optimize the preferred hotel program Consider a multi-tier program. Buyers can include a range of hotel categories at key locations to adapt their programs to travelers with different expectations. For example, it may be appropriate <strong>for</strong> employees traveling in their own country to stay at lower-category hotels than long-haul travelers who may not be as familiar with the destination and typically stay longer. In fact, the majority of surveyed travelers agree with this principle (Figure 62). Similarly, higher-category hotels might be provided at destinations that typically involve longer stays, bearing in mind that nearly a quarter of all stays, or 69 percent of room nights, involve at least three nights (Figures 63-64). Companies may also consider serviced apartments <strong>for</strong> stays of five nights or more. Figure 62: Both domestic and international travelers believe long-haul travelers should stay at higher quality hotels Strongly disagree Disagree Agree Strongly agree Source: CWT Travel Management Institute Based on a survey of travelers (5,016 responses) 71
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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
Page 22 and 23: Figure 12: Most corporate hotel boo
Page 24 and 25: Data on hotel spend is however, not
Page 26 and 27: How to calculate your company’s t
Page 28 and 29: 2. Twenty-one percent savings throu
Page 30 and 31: Many organizations have yet to opti
Page 32 and 33: GDS auditing It is important to ens
Page 34 and 35: 1. Consolidate data Travel managers
Page 36 and 37: Figure 27: Combined TMC and credit
Page 38 and 39: Figure 28: Recommended data fields
Page 40 and 41: Hotel category: not the most import
Page 42 and 43: “No-frills” booking When it com
Page 44 and 45: In fact, travelers often draw on th
Page 46 and 47: A number of differences between the
Page 48 and 49: SUMMARY Understanding traveler need
Page 50 and 51: 2. Ask travelers to use serviced ap
Page 52 and 53: Figure 41: Recommended rules for bo
Page 54 and 55: Figure 43: Rates are on average 18-
Page 56 and 57: Figure 46: In a rate benchmarking e
Page 58 and 59: 5. Mandate booking at least two wee
Page 60 and 61: 6. Address extra charges Travelers
Page 62 and 63: SUMMARY An optimal hotel policy cov
Page 64 and 65: 4. Optimize the preferred hotel pro
Page 66 and 67: Identifying properties and location
Page 68 and 69: Considering local market conditions
Page 70 and 71: Figure 59: One company could save 6
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
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Require travelers to book their hot
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Investigate the reasons for noncomp
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To ensure that the agreed condition
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GDS rate squatting. Regular GDS aud
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Rate audits pay A rate audit conduc
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Tracking traveler compliance Compan
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SUMMARY Tracking performance: Compa
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Appendices Glossary The following i
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For more information about how CWT
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Room for Savings: Optimizing Hotel Spend - Carlson

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