By Susan Avery
Now that the new year is underway, travel procurement managers are working to ensure that the time they spend negotiating room rates with hotels is paying off: Their organizations do not realize lower cost and other benefits if travelers are not paying the rates they agreed upon.
There are a couple of reasons why travelers don’t pay the negotiated rates. One is that the rates don’t show up in the online booking tool they use to reserve hotel rooms. Another is that the rates show up, but travelers choose other rates unaware that the negotiated rate may include such amenities as Internet access, parking or breakfast.
To help its clients--travel procurement managers--evaluate their hotel programs and identify opportunity for savings, Travelocity Business recently enhanced its Hotel Rate Assure suite of services, collaborating with online booking tool, GetThere, and a client, national insurer Wellpoint.
Hotel Rate Assure consists of the Hotel Shopping Rate Audit, an online audit based on the rates the traveler sees when shopping for a hotel. Hotel Shopping Rate Audit looks at GDS (Global Distribution System) results for all the hotels offered and if the corporate preferred rate is not available, a data point is created containing rate information for each property offered. A managed travel program can yield thousands of such data points a month.
To help its clients manage the information, Travelocity Business created a tool that parses and analyzes the results provided from the data points and formulates a comprehensive audit report. Its consulting team can then use the audit results and provide analysis based on the company’s preferred hotel program.
In an interview with My Purchasing Center, Blake Goodwin, Vice President of Marketing and Product Development at Travelocity Business in Southlake, Texas, explained:
“If you think about it, travel procurement managers go through the RFP process, establish a hotel program for the year, and agree with the hotel chains on rates on properties,” he says. “Travel procurement managers then have to ensure that the booking tools are going to display those rates.” RFP stands for Request for Proposal.
Travelocity Business analyzes the rate information generated by the data points it receives from the booking tool and provides clients reports that show opportunity for savings because the traveler didn’t see or didn’t pick the right rate. “With this information, we can have a meaningful conversation with the traveler or with the property,” Goodwin says.
In addition to the Hotel Shopping Rate Audit, Hotel Rate Assure also includes these features:
Susan Avery is Editor-in-Chief at My Purchasing Center. She writes articles, blogs and white papers and manages and creates other content for the online procurement and supply management publication. She produces and moderates roundtable discussions, podcasts, webcasts and video interviews. Susan has 30 years experience covering procurement and supply management for Purchasing magazine and Purchasing.com.
As managing supply chain risk continues to be on the minds of CEOs in 2017, procurement leaders may want to ensure their teams have a good understanding of the legal aspects of their relationships with suppliers and good rapport with the company’s at… Read More
Concerned about data protection? How can IT procurement ensure data security and reduce cyber risk for your organisation? Read More
Many organizations have implemented strategic procurement which coupled with the recent volatility of markets requires procurement to evolve the function. Part of this is increasing the strategy and analysis to a wider scope of the supply chain to pr… Read More
Staples Advantage is the one supplier that offers all the business solutions you need, all with the expertise of a specialty vendor. Read More
It started in 1972 with an idea, a new concept in distribution. Today, Digi-Key Corporation is one of the fastest-growing electronic component distributors in the World. The stimulus for this growth is Digi-Key's customer-centered business philosophy… Read More
Procurement and supply management leaders have a seat at the table, and management’s expectations are high. But what do CEOs really want, and is purchasing delivering on these expectations? This webcast looks at how procurement and supply management … Read More
At world-class companies, purchasing’s influence touches just about every area of spending. But, how exactly do procurement teams get to the point where other departments approach them for help with sourcing such indirect categories as human resource… Read More