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Wrong rates quoted in 1 in 6 hotel contracts

GBTA and HRS Global Solutions urge travel bookers to audit contracts after findings reveal discrepancies
06/06/2017

Pictured: HRS CEO Tobias Ragge

Corporate travel organisers risk paying more than they bargained for when it comes to hotel rates, with one in six audits (17 per cent) revealing discrepancies between negotiated rates and the final amount.


The findings come as part of new research from the Global Business Travel Association (GBTA), which also found that one in 10 travel managers (14 per cent) didn't even carry out audits of their negotiated hotel contract information to verify its accuracy, meaning potential discrepancies would not even be picked up.


When rate discrepancies were found, European, Middle East and African (EMEA) respondents said it was inflated by an average of 11 per cent. The worst region was Latin America, where rates were on average 18 per cent more.


GBTA Foundation carried out the research with HRS Global Hotel Solutions. HRS CEO Tobias Ragge said: "The research results show that a closer look at the rates is necessary. Travel managers work hard to negotiate cost-effective hotel rates and desired amenities for their travellers as an important component to a successful corporate travel program, but this all becomes undone when a significant share comes with errors and their travellers don’t get what was negotiated."


Negotiated hotel contract information includes rates, amenities and other negotiated features.


Only a minority (6 per cent) say they audit monthly and just 3 per cent audit on a weekly basis.


Of those who didn't perform hotel audits, 42 per cent said it was due to lack of internal resources and 16 per cent said there was no budget to outsource the task. Additionally, 35 per cent rely on their Travel Management Company (TMC) to check the rate, 32 per cent trusted the hotel to do this for them and 18 per cent believed performing such audits did not have a significant impact on the rate, and there wasn't part of their priorities.


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