Room for Savings: Optimizing Hotel Spend - Carlson

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Figure 1: Breakdown of surveyed companies by sector and travel spend Sector Consumer goods/retail 12% Heavy industry/ manufacturing 12% Banking/insurance/ financial services 10% IT/technology/ telecommunications 12% Government/ not-<strong>for</strong>-profit 10% Pharmaceuticals 9% Transportation/logistics 2% Other 4% Aerospace/defense 6% Professional services 6% Energy/chemicals 8% Food/beverages 9% Total travel spend (US$) <strong>Hotel</strong> spend (US$) $50-100M 8% > $100M $15-30 12% $30-50M 7% > $50M 2% 7% < $2M $20-50M 20% < $5M 30% $5-15M 27% 32% $5-20M 35% $2-5M 20% Source: CWT Travel Management Institute Based on a survey of travel managers (101 responses)
Figure 2: Breakdown of surveyed travel managers by scope of responsibility and region Scope of responsibility Region National 43% Global 46% Asia Pacific 7% Latin America 2% Regional 11% North America 37% Europe, Middle East & Africa 54% Source: CWT Travel Management Institute Based on a survey of travel managers (101 responses) Figure 3: Breakdown of surveyed travelers by region Europe, Middle East & Africa 76% North America 18% Asia Pacific 6% Source: CWT Travel Management Institute Based on a survey of travelers (5,016 responses) 7
Page 1: Room for Savings: Optimizing Hotel
Page 4 and 5: Contents Introduction Overview ....
Page 6 and 7: Research objectives This CWT resear
Page 10 and 11: Key findings in brief The research
Page 12 and 13: changes. In addition to providing t
Page 14 and 15: A complex market The complexity of
Page 16 and 17: A lack of global standards to defin
Page 18 and 19: Complex pricing Hoteliers use diffe
Page 20 and 21: 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
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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
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Figure 61(continued): The share of
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Figure 63: Hotel stays of at least
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Deciding between existing preferred
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Figure 69: Companies that retain at
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SUMMARY Key points for optimizing a
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5. Negotiate effectively Negotiatio
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Chain-wide agreements, as the name
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Chain-wide deals tend to offer smal
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There is, however, a risk associate
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Despite this reticence, 40 percent
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Figure 83: Another company’s ARR
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Last-room availability A last-room
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LRA is common in corporate contract
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Benchmark rates. Companies commonly
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Companies can consolidate volumes i
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Leverage city caps. Experience sugg
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Consider renegotiating flat rates d
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Buyers should use the full range of
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Hoteliers’ performance. A hotelie
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Ensure your travel management team
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6. Improve traveler compliance The
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Understanding why travelers book ou
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The survey also indicates that trav
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Explain the stakes. Price-conscious
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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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