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Room for Savings: Optimizing Hotel Spend - Carlson

Room for Savings: Optimizing Hotel Spend - Carlson

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Seven steps to optimize hotel spend > Negotiate effectively<br />

Figure 77: One company spends up to 35% of room nights at preferred chains, based on an<br />

analysis of spend in six cities<br />

Breakdown of nights spent at preferred properties/chains and other hotels<br />

by a company’s travelers in 6 cities<br />

(Company B)<br />

100<br />

20<br />

16<br />

80<br />

41<br />

40<br />

43<br />

<strong>Room</strong><br />

nights<br />

(%)<br />

60<br />

40<br />

20<br />

49<br />

24<br />

31<br />

35 31 29<br />

64<br />

22<br />

76<br />

57<br />

Other<br />

Preferred properties<br />

Preferred chains<br />

(excluding preferred<br />

properties within the chain)<br />

0<br />

Chicago Paris New York London Princeton Madrid<br />

Source: CWT Travel Management Institute<br />

Based on credit card data <strong>for</strong> one company’s hotel spend in 6 cities in April 2008<br />

14<br />

Figure 78: The ARR paid by the same company at its preferred chain in three cities was<br />

on average 6 percent higher than at preferred properties<br />

8<br />

Source: CWT Travel Management Institute<br />

Based on credit card data <strong>for</strong> one company’s hotel spend in 3 cities in April 2008<br />

85

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