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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Figure 83: Another company’s ARR rose more than the corporate market after switching to<br />
dynamic pricing<br />
Evolution of average room rate indexed to 2005 rate<br />
at 9 U.S. hotels within a chain<br />
Company AW switched<br />
to a dynamic pricing agreement<br />
All CWT clients, including<br />
those with flat-rate deals<br />
Company AW<br />
100 100 104 108<br />
Indexed rate increase<br />
2007-2008:<br />
- Company AW: +8%<br />
- All clients: +4%<br />
January - July 2007<br />
January - July 2008<br />
Source: CWT Travel Management Institute<br />
Based on transaction data<br />
Figure 84: For the same company, losses at three properties cancelled out savings achieved<br />
at five other hotels<br />
Average room rates indexed to 2007 (2007 = 100)<br />
(January – July 2007 vs. January – July 2008)<br />
All clients<br />
Company AW<br />
99 97 98 99<br />
125<br />
114 110 111<br />
103 105 107 101<br />
103 101<br />
105<br />
97 96<br />
125<br />
121<br />
105<br />
104 108<br />
Average rate<br />
Atlanta Airport<br />
Logan Airport<br />
Oakdale<br />
Long Beach<br />
New York<br />
Newark<br />
Ontario Airport<br />
Phoenix<br />
Salt Lake City<br />
Seattle Airport<br />
Average<br />
<strong>Hotel</strong> locations<br />
Source: CWT Travel Management Institute<br />
Based on transaction data