Whitepaper disproves myth that you can buy hotels cheaper on the internetHotel solutions provider HRS unveiled its latest whitepaper at this year’s Business Travel Show at Olympia in London which focuses on disproving the myth that you can buy hotels cheaper on the internet, and demonstrates that it’s the lowest ‘right’ rate adapted to corporates that really matters.
‘Lowering the BAR’ explains the essential elements of any robust corporate hotel programme, examining spot market rates and negotiated rates, and looking at the best way to find the lowest hotel rates. HRS’ whitepaper also includes 13 helpful pointers about what to consider when leveraging best value. .
The whitepaper has been developed to provide readers with a whole raft of helpful insights, and explains the thinking behind hotels’ dynamic and fixed rate strategies, whilst also looking at why the internet can be a misleading place to search for the best deals on hotels for business.
Importantly, the whitepaper also illustrates that finding the right channels for a travel manager increases the productivity of employees. The whitepaper describes that even if the company maverick can find a lower rate five times in every hundred bookings, that saving will be decimated by the productivity lost as a result, and the rate secured will probably not be cancellable, thereby risking further charges. With HRS estimating that one in six corporate bookings are cancelled or changed, these charges can soon add up.
Talking about the whitepaper, Jon West, Managing Director for HRS in the UK and Ireland, commented: “We are delighted to be launching our third whitepaper at this year’s Business Travel Show, and hope that buyers and procurement managers really feel the benefit.
“In 2014, HRS Business Intelligence helped us prove the savings that can be achieved with our controlled BAR, Corporate Club rate and Corporate discounts – something that we have been talking about for ages. With this latest whitepaper we are keen to reiterate to this audience that the challenge is not to find the lowest hotel rate, but to find the best hotel at the lowest acceptable price taking into account all the key criteria within any corporate travel policy. With procurement having a wide choice of solutions to choose from, this whitepaper is intended to demonstrate that it is possible to have the best of both dynamic and negotiated rate models.
“‘Lowering the BAR’ will help corporate buyers and procurement managers to turn knowledge into savings as the whitepaper clearly demonstrates that they no longer need to choose between dynamic and fixed price models – or have to invest time in creating a hybrid model.”
The whitepaper delves into how hotel rate programmes are constructed, considers the best way to ensure the lowest available rate every time, and also debates what really constitutes the ‘lowest available hotel rate’.
Jon concludes: “Increased transparency of public rates through the OTAs and price comparison websites has driven corporate misunderstanding of rate types, and we hope that our whitepaper illustrates why it is important that business travellers aren’t allowed to waste their own or the company’s time looking around for the cheapest hotel. Finding the cheaper rate on a one off simply does not help to consolidate the volumes and gain negotiation power.
“Corporates require the best of both worlds – a choice of hotels to meet travellers’ needs at the lowest price, bearing in mind booking conditions. Also, the lowest rate may not be the most cost-effective rate as negotiated rates often include airport or local transportation, breakfast, Internet, parking and other amenities.”
The whitepaper was distributed from HRS’ stand B755 on 25 and 26 February and is available to download for free at HRS’ corporate website.