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Companies overspend on LRA rates

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Many companies losing over hotel bookings: research
There is a 5% gap between perceived and actual values of Last Room Availability hotel rates, according to new research by CWT Solutions Group, the consulting division of business travel management company Carlson Wagonlit.
For a company that spends US$20 million with their preferred hotels, CWT points out, this could amount to a loss of US$1 million.
“Last Room Availability rates have been the gold standard for hotel agreements since the 1980s, and no one has ever really questioned that. But we have now looked into this in great detail and it seems like the gold has lost some of its shine,” says Eric Jongeling, hotel solutions director.
“Our research shows between 5% and 11% differences in some markets, so travel managers should bear this in mind when negotiating global rates.”
The research analysed 7,300 hotel bookings in 2016 across 97 countries. More details can be found here.
TTG Nordic

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