Background: We conducted an extensive hotel tender program for our client, a global organisation. Following the tender and the implementation of the new hotel program, we undertook analysis to determine the percentage availability of rooms at contracted rates. We discovered that contracted rates were in some instances only being delivered 50% of the time due to lack of 'contracted room rate availability'.
Action: A full rate and availability review was undertaken with each property identified. Corrective action was taken to ensure the availability of the client’s rate and/or new properties were negotiated where hotels were unable to commit to providing higher levels of contracted room rate availability.
Results: An average 30% improvement in the availability of contracted room rates. Ongoing Quarterly Reviews of contracted rate availability has ensured increases in average rates at preferred properties are identified and remedial action is undertaken quickly.