Hotel Procurement NOVEMBER 2015 Why is procuring hotels in the corporate market so difficult? Founded by corporate travel technology experts in Dallas Currently focused on B2B with B2C potential Recently expanded into Europe Reason #1 2 10% - 20% Reason #2 3 50% Reason #3 4 50% Reason #4 5 LRA Reason #5 6 Bad Data Reason #6 7 Squatters Reasons Summarized 8 1.Hotel rates will continue to increase by 10% (avg) 2.Attachment at 50% and decreasing 3.Negotiated hotels only cover 50% of spend 4.LRA is big issue, you just cant prove it 5.Hotel data is poor quality 6.Squatters Reasons Summarized 9 $65 per booking or 20% 50% Attachment - $32 or 10% 50% usage of preferred hotels - $16 or 5% 80% LRA - $13, 4% RFP Costs $10 or 3% Savings Per Booking Solutions (Discussion Topics) 10 1.Will my relationship matter? 2.Will my ability to shift share drive savings? 3.How important is my corporate policy? 4.Where can I get reliable hotel data? 5.Are hotel commissions important? 6.Will daily shopping save money? 7.How to minimize RFP time and costs? 8.Should I use % off BAR discounts or flat rate discounts? 9.How do I resolve LRA issues? Steve Reynolds