Chainwide “Discounts”: Are “savings” costing your company?

by Nathan Brooks

Chainwide “Discounts”: Are “savings” costing your company?

February 2016

Preferred hotels are the star players of your travel program. Your booking tool shows them first to score maximum savings and satisfaction for travelers. But can these preferred hotels really deliver a winning hotel program?

You should evaluate whether a chainwide discount is driving travelers to spend more to get a discount. When determining this, three critical questions need to be answered:

  1. Does my spend pattern justify having a small blanket discount with a hotel chain? If not, can I negotiate individually with key properties in high volume cities to drive the best savings?
  2. Does my TMC provide a discount program for non-negotiated properties? Does that allow for coverage and savings that float based on the daily rate and not tied to a static list of properties?
  3. Will this discount cost me more because travelers are going to book higher rates?

By answering these three questions, you can evaluate the pros and cons of a chainwide discount program and determine the best way forward.

Are chainwide discounts costing your company? Click here for the full position paper.

Authored by:

Nathan Brooks, Director of Client Services for Egencia

E-Mail: nabrooks@egencia.com

  • Egencia
  • Business Travel
  • Hotel
  • Business Traveler

Nathan Brooks brings more than 15 years of travel expertise to his role as Director of Client Services for Egencia. Nathan has been with Expedia, Inc. since 2010, with roles within Expedia’s Lodging Partnership Group and Egencia’s air and hotel supply, as well as consulting teams. Previously, Nathan held positions at United Airlines and American Airlines, as well as various sales and operations roles at hotels in the Phoenix area. Nathan earned an MBA from Indiana University in Bloomington, IN and a Bachelor of Science in Management from Arizona State University in Tempe, AZ.