18.09.2017

Why Negotiated Rate Checks Always Pay Out

Clear room and rate type descriptions are extremely important for the booking process. For Travel Management Companies (TMCs) and corporate travelers, it is even more important to find the negotiated rates that the company has agreed on during the RFP (Request for Proposal) process. Also distinct services information such as breakfast inclusions and Wi-Fi have a positive impact on driving conversion rates during the shopping process. 

A recent GTBA study found that 17% of negotiated rates are not displayed correctly. Advito, BCD’s sister company, even found that 26% of these rates are not correct or completely missing at the beginning of the year. These findings are underlined by h2c’s own research (based on our clients’ data), where 20-30% of all rates are subject to various kinds of errors.

Errors are nearly unavoidable because the rate loading process is usually managed by multiple parties. And hotels are hardly ever aware of this situation, because they often do not have access to the actual rates loaded in the GDS. The hotel’s first notice of this situation is often triggered by corporate client complaints who are not receiving the right room rates. 

To avoid this situation, h2c conducts negotiated rate checks on behalf of hotel chains on a regular basis. We found that the main reasons for incorrect data are:

  • Quality assurance processes are not established as hotel chains rely on TMCs to conduct these checks. However, not all TMCs conduct checks on a regular basis; and spot-checks carried out by CRS companies are often not sufficient. 
  • The RFP process is lengthy, normally involving several companies and departments. This can result in negotiated rates not being loaded. Clear standards for effectively managing internal processes at hotel chain level can help to speed up rate loadings, ensuring that technical challenges do not hold up the whole rate loading process.
  • Negotiated rates are often extended prior to the expiration date (ensuring they are still available despite a possible rate value change for the new contracting period). Make sure extended rates are updated as soon as the bid/new agreement is accepted. 
  • Technical challenges with PMS, CRS and GDS connectivity (or other systems that are involved in the whole process) due to interface issues and other reasons.

H2c’s proven rate check process uncovers all of these potential errors. We make sure your negotiated rates are fully bookable for your corporate traveler clients. 

For further information on negotiated rate checks, please contact us.

 

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