Integrated hotel sourcing for savings, choice and benefits

White Papers 28 Sep 2017

With a shift in the way hotel rates are being marketed to business travellers, companies are now faced with a myriad of hotel options from multiple booking platforms. Benchmarking shows FCM Travel Solutions offer the best option for business travellers wanting the optimum mix of price, choice and value-adding benefits.

Latest developments in pricing andproduct choice

Online Travel Agencies (OTAs)

While many OTAs continue to promote themselves as offering the best rates available, it is important to note that Travel Management Companies (TMCs) also have access to these rates through the Global Distribution System (GDS) and are able to book these for their customers.  And while these restricted rates may be useful in some travelling circumstances, travellers and companies should be aware that hotels are increasingly stripping these conditional rates of any additional traveller benefits, status recognition and service.

Hotels

In response to the rise of OTAs and the cost of sale associated with this booking channel, larger hotel chains are now seeking ways to claw back revenue. Hoteliers have become particularly aggressive in their consumer marketing to their member database, providing many benefits and discounts to those who book a loyalty rate.

 

The value of a TMC

FCM offers an extensive range of accommodation options worldwide, from fully flexible to restricted last-minute rates, discounted/consortia rates, exclusive member offers, and value-adding benefits. FCM's key differentiator is that its corporate travel managers understand each client’s travel patterns, traveller requirements, budgets, savings expectations and long-term goals, and consider these factors when choosing the best rate to match their needs.

Access to over 20 million room rates every night!

The following table provides examples of how FCM's corporate travel managers, have full access to the (GDS), hotel member rates and all discounted OTA rates, providing not only an extensive choice for travellers but also a perfect balance for any client hotel program.

Hotel Rates Comparison

Based on 1 night (14 August 2017, as at 21 July)

Location GDS Member rates OTA
Sydney ($ AUD)
Hilton Sydney $485 $474 $485
Intercontinental Double Bay $348 $341 $348
London (£ GBP)
DoubleTree by Hilton Westminster £225 £210 £225
Hotel Indigo Paddington £244 £237 £244
New York ($ USD)
DoubleTree by Hilton Metropolitan $428 $418 $428
Crown Plaza Times Square $468 $458 $468

 

Value-adding benefits

Through preferred partnerships with hotels worldwide, FCM complements its competitive pricing with hotel benefits that cannot be sourced through OTA bookings. These are summarised in the table below.

Additional benefits

Further to the advantages of accessing our hotel options, customers receive the following benefits by booking accommodation through FCM:

  • Policy compliance – ensuring all bookings fall within a company’s travel policy to maximise travel program savings and reduce leakage
  • Duty of care – ensuring customers uphold their duty of care by booking hotels within policy, capturing all booking data and providing 24/7 emergency assistance
  • Reporting – comprehensive and regular reporting on bookings to help identify any leakage and opportunities for further improvement and savings in the travel program 
  • Simplified payment and flexible billing – a single billing solution with the added benefit of enhanced data. Pre and post stay billing options are available in addition to the management of per diems.
  • Unparalleled travel resources and guidance – on everything from the local destination to accommodation products and services
  • Fully accountable and personalised service – which simply cannot be matched by an online booking as there is no one to speak to, and no one to share travel stories with when booking
  • Leverage – FCM's corporate travel managers draw on their long-term relationships with travel industry partners to secure better outcomes when required.
     

Flexible rate inclusions not available from OTAs

Corporate Rate Inclusions Company Benefits Traveller Benefits Available from an OTA rate?
Discounted member loyalty rates Savings to bottom line Travelling within budget No
Recognition towards company spend Cost savings Travelling within policy No
Value adds (including free Wifi or breakfast) Increased traveller business efficiency Reduced expense payments No
Access to Club benefits Increased traveller business efficiency   Enhanced traveller experience No
Earning and redeeming loyalty and status points Potential use for future business related trips Reward for future holiday or bleisure No
Recognition of status Increased traveller business efficiency, assists with policy compliance Upgrades, access to lounges, free WiFi, breakfasts, bonus base points, free nights, late check-out etc No
Corporate allocated rooms Access to more services Better located rooms within the hotel No