Hotel Rate Roulette

Making sure your lodging program is getting everything you’ve negotiated is arduous work
Travel buyers frequently compare negotiating hotel rates to visiting the dentist. Sometimes the time spent in the chair is worth it. But often you end up going back for a root canal.

That may be an exaggeration, but despite the best efforts by travel managers, negotiated rates are not booked consistently – some reports put compliance as low as about 60 percent. Such results can be both frustrating and costly.

Even getting a true handle on compliance rates can pose challenges. In fact the 60 percent figure can actually be a bit misleading depending on how you define compliance, says Eric Jongeling, director, CWT Solutions Group.

When including chain-wide deals in the calculation, Jongeling reports that his company often sees 80 to 85 percent compliance. By comparison hotel coverage (meaning that a traveler had an option to book a preferred hotel in a given city) falls between 90 and 95 percent.

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Categories: Special ReportLodgingManaging Travel Programs

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