Getting your programme right is essential, which is why Sam Welch from Capita Travel and Events provides her seven top tips for an effective hotel rate programme:
1. Relevant M.I
Make sure your Management Information (M.I.) data is recent and relevant: It’s essential to ensure you are equipped with up to date statistics on a city by city basis.
2. Future demand
Accurately predict your future market volumes/ booking levels where possible by working collaboratively with your business stakeholders. So, if you expect a significant change in bookings based on changes within your business, it could help your agency in negotiating on your behalf.
Likewise, the sooner you discuss any potential drop in predicted volumes, the more likely it is that your agency can help your company and your preferred suppliers in agreeing a plan of action.
3. Influence your bookings
Compliance is important and driving volumes to your preferred suppliers is vital. This proves to suppliers that you have the ability to influence travellers and give the suppliers the business you predicted. This should be supported by policy controls within your booking tool.
4. Key performance indicators
Are your average room rates (ARRs) performing as expected? i.e. are your bookers able to book your agreed rates and are they doing so? You must make sure you work with your agency to regularly review your rate programme alongside new supplier opportunities. This will help you to drive better value for money in each of your key locations.
5. Aggregating spend
Ensure you are closely monitoring your meetings and events spend and include those volumes in your discussions with suppliers. This is another critical revenue stream for suppliers and your organisation can benefit from leveraging the combined volumes.
6. Don't forget the incidental costs
Aligning your travel and expenses policy with your hotel programme and business objectives remains equally important to driving strong compliance and strong cost management. It’s not just about your room rate so don’t forget room related expenses such as meals and parking - make sure you’re tracking these trends too.
7. Keep auditing
There’s no point in negotiating competitive rates for employee accommodation, if the rates are often unavailable to book when you need them. So, having a robust ongoing rate audit process is vital.