How to manage a successful hotel program

Companies can transform their hotel programs into powerful tools that support both financial and operational goals. Here’s how.

Benefits of establishing a formal hotel program

Hotel spend is an important part of any travel management program.  

“Hotel spend typically makes up 30–40% of your total travel expenses,” noted Matt Cameron, COO of Christopherson Business Travel. “For some industries, like locum tenens, it’s even higher.”  

With such a significant portion of travel budgets devoted to accommodations, an unmanaged or lightly managed program risks missing substantial cost-saving opportunities.

A structured hotel program helps:

• Drive cost savings through negotiated rates

• Enhance traveler safety by vetting properties

• Improve traveler satisfaction by aligning with preferred hotel brands and loyalty programs

Implementing a structured hotel program helps organizations save money through negotiated rates, ensures traveler safety by vetting and selecting trusted properties, and enhances traveler satisfaction by aligning with preferred hotel brands and loyalty programs. This approach not only optimizes costs but also supports a safe and positive travel experience for employees.

Key elements of a successful hotel program

1. Leverage a travel management company’s (TMC) buying power. “On day one, you gain access to thousands of pre-negotiated BCD and THOR rates,” Cameron explained. These consortium rates provide immediate savings and convenience for clients without the need for initial negotiations.

2. Analyze travel patterns. “Understand your current spend and anticipate future needs,” emphasized Stacie Prusha, supplier relations director at Christopherson Business Travel. Expansion plans or new projects can shift where you need accommodations. Keeping this in mind allows for proactive rate negotiations.

3. Consolidate hotel spend. Cameron advised, “Concentrate your spend at two hotels per city to maximize negotiating power.” For major cities, consider splitting across regions (e.g., uptown and midtown).

4. Set clear policies. Establish an average daily rate within your policy that aligns with your negotiated rates and designate exception cities where higher rates are inevitable (e.g., New York, Chicago).

5. Negotiate heavily used hotels. “Local properties often value direct business,” Prusha said. Engage with hotels where your organization has significant volume to secure favorable rates.

6. Load and test rates. Rate loading is a major pain point. Prusha explained, “Getting hotels to load negotiated rates accurately into GDS is challenging, but critical.” Christopherson’s team ensures these rates are properly loaded and visible in your booking tool.

7. Monitor and audit. “It’s not enough to set it up and walk away,” Cameron cautioned. Regular audits help confirm that negotiated rates are being used and generating savings.

Pro tips on reducing costs

To effectively reduce costs in a hotel program, organizations should strategically limit hotel choices and customize amenities. Cameron suggested that concentrating bookings to approximately 250 room nights per hotel annually can greatly enhance negotiating power, leading to more competitive rates and value-added benefits. This focused approach allows travel managers to leverage higher booking volumes to secure better terms.

Additionally, Prusha highlighted the importance of tailoring amenities to actual traveler needs. For example, if data shows that the majority of travelers do not take advantage of complimentary breakfasts, it makes sense to remove this from negotiations to secure a lower rate. Customizing hotel offerings ensures that costs are aligned with the practical use of services, avoiding unnecessary expenses while maintaining traveler satisfaction.

The role of technology

The role of technology in managing hotel programs cannot be understated, particularly for travel managers who struggle with the time-consuming nature of manual processes. Hotel sourcing automation tools have emerged as a powerful solution, streamlining complex tasks and freeing up valuable resources.  

According to Prusha, “Christopherson’s tool can compile booking data, send RFPs, and continuously analyze market rates.”  

This makes the process far more efficient. These tools simplify every step of sourcing, from initial rate requests to ongoing contract renegotiations, allowing organizations to maintain a competitive edge without the administrative burden.

One of the most significant advantages of such automation is its ability to ensure real-time savings. Rather than relying solely on initial negotiated rates, automated systems monitor market trends and can rebook accommodations at lower rates when opportunities arise.  

This continuous analysis and renegotiation provide a dynamic way to maximize cost efficiency. The integration of technology into hotel program management transforms what was once a painstakingly manual endeavor into an agile, data-driven process that saves both time and money while improving overall program effectiveness.

Build a program that pays

Establishing and managing a formal hotel program is a strategic necessity for organizations seeking to optimize travel spend, improve traveler safety, and enhance satisfaction. By partnering with a TMC like Christopherson and following industry best practices, travel managers can build robust, cost-effective hotel programs tailored to their organization’s unique needs.

Want to learn how Christopherson can maximize your travel program? Click below.

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