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September 2022, Virtual
September 29 2022, Virtual
Businesses are at risk of paying more than their negotiated hotel rates due to errors in rate loading and failure to properly audit.
A joint global study from the GBTA and HRS found that 86 per cent of travel managers audit their negotiated hotel contract information, including rates, amenities and other negotiated features, once it is loaded into the system to verify its accuracy. However, only a minority check on their rates frequently, with 6 per cent auditing monthly and three per cent on a weekly basis.
Among those who do not perform hotel rate audits, 42 per cent say it is because they have no internal resources to do so and 16 per cent say they have no budget to outsource the task.
Additionally, 35 per cent rely on their Travel Management Company (TMC) to check the rate, 32 per cent trust the hotel to do this for them and 18 per cent believe performing such audits does not have a “significant impact on the rate, so it’s not part of their priorities”.
Click here to view infographics highlighting statistics by region: APAC, EMEA, LATAM, Nordics and North America
The GBTA and HRS said given that one in six audits reveals a discrepancy between what was negotiated and what appears in the system, there is “missed revenue-saving” opportunities for travel programmes who do not perform rate audits.
They claim by not performing regular audits and depending on unreliable sources of data, companies are paying far more in hotel costs than they should due to errors in rate loading.
“The research results show that a closer look at the rates is necessary,” explains HRS CEO Tobias Ragge. “Travel managers work hard to negotiate cost-effective hotel rates and desired amenities for their travelers as an important component to a successful corporate travel program, but this all becomes undone when a significant share comes with errors and their travelers don’t get what was negotiated.”
Download the whitepaper: Hotel Rate Audits –Don’t Leave Money on the Table. This global study, conducted by the GBTA Foundation, was fielded in three phases during January 24-April 3, 2017, yielding a total of 418 responses (United States – 41 percent, EMEA – 28 percent, LATAM – 16 percent, and APAC – 15 percent).