24 Feb The Total Cost of Lodging (with White Paper Download)
Corporate travel management costs money. How much, you ask? Well, more than you think. Think of it this way: Most travelers spend about $1,000 per trip for corporate travel. Recent statistics also showed that the corporations spend a total of $150.2 billion per year in travel. So it’s safe to assume travel takes up a huge chunk of your corporate budget. What’s the total cost of lodging for YOUR company?
What are some ways your company might be overspending? Researching, negotiating, and invoicing travel expenses have proven to be the three most costly, but not for the reasons you’re probably thinking.
Did you know that the average book-to-search lag time is 4 days? That travelers look at 38 travel sites in the 45-day period before booking? That’s a lot of time employees are spending on the internet, searching endlessly for the best rates and nearest locations while they’re at work. Their time is a valuable labor cost that your company could be spending elsewhere, like investing in the industry in which your business has worked so hard to gain expertise.
Like research, negotiating hotel room rates with hotel representatives consumes a company’s finances and time. Negotiating proves to be a necessary evil in the recent business year. Blame low supply and high demand for this phenomenon. Mark Woodworth, a PFK Hospitality Analyst posits, “Hoteliers are experiencing success as the US climbs out of a recession and has money to spend again.” In fact, hotels are charging the highest hotel rates the industry has seen in years, with an estimated market increase of 9.8 in hotel rates alone, not to mention the even higher rates of more in-demand locations.
If your company is not negotiating, they’re stuck paying these inflated rates. Unfortunately, without the help of a outsourced lodging specialist, hotel staff often disregard direct negotiation tactics. Hotel representatives respect the voice of a seasoned travel manager, since they more likely view the bargaining conversation as an industry chat based on a double-edged benefit. Find out more about negotiation experts at CLS here!
The third heinous travel cost is invoicing. In fact, the average cost for a company that processes 450 invoices per month totals over $45,500 per year. Although electronic invoicing cuts accounting expenses by 50%, sending multiple electronic invoices drains corporate dollars, too. The worst part? Approximately 25% of these costly invoices contain inaccurate information, resulting in even more labor spend in trying to decipher and correct the errors.
How does CLS help? Well, according to one of our clients, “Before our company found Creative Lodging Solutions, I had a ton of extra work not only to find a hotel but to also get a direct bill set up AND then sort through massive invoices. Creative Lodging Solutions lives up to its name and its motto: One Call, One Bill, One Solution. It really is that simple.” When you’re drowning in costly travel expenses, or overwhelmed by researching countless sites, or struggling to negotiate with stubborn hotel staff; remember that travel management can be easier.
Outsourcing travel management to CLS has shown clients savings of about 22% off best available rates. That’s not even counting the other ways we’ve saved them, such as the pesky hotel fees that keep adding up, and the countless labor hours that they could have dedicated to their business. This company can expertly leverage buying power, negotiate travel costs, and ensure billing procedures. Why is that? Because that’s what we do for a living here at CLS: we validate the truth that travel management literally takes all day. What does your team do during a typical 8-hr. work day? It’s not managing corporate travel, is it? Letting experts like CLS travel consultants handle your business travel will show significant gain in both company resources and time–immediately and eventually. You owe it to your business to get back to what you do best and leave the rest to the travel management gurus at Creative Lodging Solutions.Download our free white paper