Global TMC Egencia has launched a new hotel policy
configuration feature that uses an AI-powered algorithm to automatically and
dynamically adjust hotel price caps according to the local market median and
can be personalised to a company’s travel policy groups and its booking
behaviour.
The company says the new tool automates a process that is
usually done manually by aggregating real-time hotel prices in a specific
location to identify a market median and using it to configure the appropriate price-per-night
cap for any traveller booking a room in that town or city. The feature constantly
adjusts for market fluctuations while driving down spend.
Travel managers can also personalise rate caps for different
policy groups within their organisation, such as increasing allowances for
specific employee types including frequent travellers and senior executives.
They can also customise the strictness of rate caps by specifying that only
hotels with a minimum star rating are used in the median calculation, as well
as mix and match between dynamic and static hotel rate caps for certain travel
groups, cities, or countries.
The rate cap feature integrates with Egencia Analytics
Studio to allow travel managers to receive detailed reporting and visual
dashboards that clearly demonstrate the median rate, booked rate and savings
realised. Corporates will receive this data insight going back to January 2021 regardless
of whether they activate Dynamic Rate Caps.
Based on a pilot, Egencia says the feature can deliver
average savings of $20 per hotel booking.
Egencia will be on stand BTSD120 at Business Travel Show Europe at ExCeL London from 30 September to 1 October.