Part 1: Evaluating your corporate hotel program - how to determine the value

Creating a hotel program seems simple, right? Well, what if we told you, according to STR, there are approximately 800 hotel chains representing more than 1,300 hotel brands worldwide?

So, with so many hotels to choose from and more in the pipeline, it has never been more important to use the expertise of a travel management company to navigate this rapidly evolving sector to get the biggest bang for your buck and meet the diverse needs of your travelers.

Accommodation is a key part of travel spending, and Corporate Travel Management (CTM) has the technology and expertise to help you accurately identify savings opportunities. At CTM, we invest heavily in developing tools and services that maximize savings, including access to pre-paid last-minute hotel inventory and tactical supplier negotiations. Our account management teams work closely with you to understand what service offerings you consider valuable to your business and employees as this can vary greatly.

What do you deem valuable?

Organizations need to understand what they deem valuable from a hotel service offering. This does not always solely come down to achieving the lowest possible rate available at the risk of the standard of facilities, level of service, location, amenities or value-adds. Considering the wellbeing of travelers may also be valuable to ensure they are well-rested, enabling them to carry out the intended purpose of travel most effectively and productively, often delivering greater returns.

So many brands, so much choice

With so much choice, deciding what ‘type’ of accommodation solutions are required to service your travelers’ needs is critical. Full-service, self-catering, chain and independent boutique hotels all offer different guest experiences, each valuable but not necessarily suitable for every business or traveler.

The CTM Global Hotel Program allows customers to take advantage of CTM’s global buying power, with more than 48,000 properties in over 200 countries participating, offering discounts, benefits and flexibility. CTM is witnessing a trend of more customers designing their accommodation program around the offering, especially for locations that have infrequent travel volumes and don’t necessitate a negotiated rate. By leveraging the CTM Global Hotel Program, customers often achieve lower average daily rates.

Partnerships and employee feedback

Value may also be found in preferred hotels that are selected based on a long-term like-minded partnership where they are working towards achieving common goals, such as sustainability, or based on reciprocal business benefits.

As an example, CTM supported an FMCG customer by creating a bespoke identifier in Lightning, CTM’s proprietary online booking tool, to identify hotels that stocked their products. This allowed the organization’s travelers to make informed buying choices based on reciprocal business with the customer. This improved their partner hotel attachment rate and demonstrated value back to their business to help their future commercial discussions.

Value can also be found through listening to what travelers deem important. Employee feedback forms, surveys and verbal feedback are a great way to understand the performance of your current suppliers’ value and suitability for their intended purpose.

Consolidating hotel spending

Whether it be corporate, groups, projects, long-stay or bleisure travel, consolidating all types of business travel under a common hotel program and policy will help increase buying power. Some organizations are using this buying power not only to achieve cost savings but also to increase the quality of hotel selection for a better traveler experience. Corporates are focused on taking the friction out of business travel to make it an enjoyable, aspirational experience and a positive component of the employee value proposition, which is critical to the retention of employees.

Location, location, location

The consideration of location is also important. This can be the proximity of hotels to regional offices, project sites, customers’ offices, or conference and event venues. The ability for business travelers to walk or take public transport eliminates incidental expenditure of ride-share, taxis or private transfers, providing cost savings back to the business and reducing their carbon footprint.

Length of stay

Length of stay can also be considered when measuring value. For an extended stay, utilizing apartment-style accommodation with home comforts, such as a kitchen, washing facilities and more space to work, may be a better solution than traditional hotel accommodation.

Duty of care

Where the duty of care is paramount, consideration of hotel security features, including 24-hour reception and dedicated floor swipe access, may be incorporated as a mandatory requirement. In addition, confirmation of security cameras on each hotel floor and car park may also be a consideration to support safety and security in hotel public areas.

Finding value beyond savings

As many organizations look to review their preferred hotel suppliers and the effectiveness of their hotel program, remember to look beyond cost savings. While maximizing your travel budget is important, doing so at the risk of traveler comfort, safety, security and productivity may have larger implications for your organization. Work with your travel management company to reap the rewards of their relationships, influence and expertise. Their knowledge of hotel products and their understanding of your business will deliver you a hotel program that not only increases hotel attachment and reduces out-of-policy bookings, but also where you will find the true meaning of ‘value’.