Hotel savings look different today than they did even a few years ago. The traditional model – source once a year, secure fixed rates, and hope travelers book correctly – won’t deliver the results organizations need. Demand shifts, new booking behaviors, and economic pressures require a more agile approach.
If your goal is to reduce hotel spend and improve value for travelers, the key is ongoing optimization. Here’s some guidance from our Advito hotel experts on how to get started.
1. Know your hotel data
Understanding the basics of your rate performance is the foundation for any successful strategy. Two metrics matter most: Average Negotiated Rate (ANR) and Average Booked Rate (ABR).
Average Negotiated Rate (ANR) – The weighted average rate you’ve negotiated for a property or market. Use it to:
- Compare against Best Available Rate (BAR)
- Validate your discount levels
- Forecast potential savings
Average Booked Rate (ABR) – The rate travelers are actually booking. Use it to:
- Measure real program performance
- Identify compliance gaps
- Spot opportunities to influence traveler choice
Why it matters: ANR shows your potential. ABR shows your reality. The gap between them reveals where savings are slipping through the cracks and where targeted improvements can make the biggest impact.
The Hotel Performance Dashboard, developed by our Advito consultancy, allows you to easily monitor the competitiveness of the negotiated hotel program and uncover hidden savings opportunities throughout the year.
2. Shift from static sourcing to continuous performance management
Annual sourcing is still important, but it shouldn’t be the only moment you look at your hotel program. Rates, demand, and traveler behavior shift constantly. A static approach can leave substantial value unrealized.
How to adopt a more dynamic strategy:
- Monitor rate performance year-round
- Catch uncompetitive rates early
- Track changes in booking patterns
- Redirect travelers to better-value options
- Adjust sourcing and rate targets mid-year – not months too late
What this delivers: Savings you can act on now – not 12 months from now.
3. Turn data gaps into strategic intelligence
Relying solely on agency-reported data can leave as much as 40% of spend untracked due to off-channel or non-compliant bookings. Missing that much information makes it harder to control spend and negotiate effectively.
Build a complete picture by consolidating:
- Travel data
- Credit card data
- Expense data
With full visibility, you can identify:
- Off-channel bookings that increase costs
- Wasteful booking habits
- Markets or properties where better deals exist
- High-value opportunities for negotiation or traveler guidance
The payoff: A more accurate baseline and sharper insights that turn data from “risk” into competitive advantage.
4. Use technology to support smarter decisions
Today’s leading travel programs use data and technology hand-in-hand to manage hotel spend more effectively. Tools from Advito and BCD help you monitor competitiveness, guide traveler behavior, and model the best sourcing strategy for your markets.
The takeaway: When your systems surface insights in real time, you can correct issues sooner and drive stronger outcomes.
5 . Optimize continuously
Hotel savings aren’t the result of a single annual event. They come from consistent, well-informed adjustments. Think of your hotel program as something you tune throughout the year, not something you set and revisit once.
Your checklist:
- Review ANR and ABR regularly
- Track rate competitiveness by property and market
- Guide travelers to preferred hotels with strong performance
- Refresh rates or target new suppliers when needed
- Consolidate data sources to close visibility gaps
- Leverage BCD and Advito tools for ongoing analysis
Ready to take the next step?
Explore the Advito Savings Report to see how data-driven strategies are helping companies improve hotel performance and protect their budgets.
