One in four hotel bills has discrepancies with negotiated rate

According to a study conducted by GBTA in cooperation with HRS, companies pay 14% more on their business travel than negotiated when discrepancies are found between what was agreed and what was paid. A quarter of the more than 500,000 fares analyzed were either wrong or did not incorporate the details of the services correctly.

The global survey, conducted during the first four months of the year, reveals that 86% of travel managers verify information when uploading rates to confirm the existence of differences between negotiated hotel rates and those finally paid, as well as the services included in corporate travel programs. According to the data analyzed, 17% of hotel contracts contain some error.

On the other hand, 32% of the managers surveyed audit their rates whenever they make any changes, 10% weekly or monthly (4% and 6%, respectively) and 22% every two months. One in seven travel managers do not carry out this type of audit.

The reasons for the lack of control are, according to 42%, the lack of internal resources; for 16%, the absence of a budget to outsource the task. Likewise, for 18%, the performance of such audits does not represent a reduction in the fee, so it is not part of their priorities.

After the RFP (Request for Proposal) and contract negotiations phase, data is entered into the GDS (Global Distribution Systems) and booking systems used by travelers and travel agents. Due to the lack of standards in the sector, such as the variation of room categories, errors occur, both human and systems, which can cause deviations between the agreed values and the data that appear in the company's booking tool.

One in six hotel contracts audited contains discrepancies, mostly in the rate, followed by room category, amenities and cancellation policy.

The HRS study of 500,000 rates reveals that 25% are erroneous.  This deviation shows that there is much to be done in the programs that travel managers handle, as companies are paying 14% more than what they had negotiated.

By region, the study indicates that discrepancies in Latam stand at 18%, in the United States and APAC they reach 14% and EMEA companies pay more than 11% of what they had negotiated.

It also shows that the way in which audits are performed varies significantly depending on the travel manager: 52% audit rates internally and manually. Others outsource the task to their agencies (38%), to their hotel solutions provider (15%) or to another external consultant (11%). Thirty-six percent expect their travelers to report when a rate is incorrect, which may be the least effective way to monitor and control discrepancies.

16% rely on the hotel to inform the travel manager when a discrepancy occurs. However, most hotels do not have the ability to check every contract 

and because of their brand loyalty are often reluctant to provide this information.

They are also reluctant to provide this information.