Conferma, the expert in travel and expense reconciliation and settlement technology has issued research showing TMCs are loosing up to 30% extra commission by calculating commission charged to clients on hotel booking data, rather than on total billed data. Using data from it’s own hotel booking and settlement database Conferma analysed100,000 global hotel bookings at the end of June. The average length of stay was1.8 nights with total…
Conferma, the expert in travel and expense reconciliation and settlement technology has issued research showing TMCs are loosing up to 30% extra commission by calculating commission charged to clients on hotel booking data, rather than on total billed data.
Using data from it’s own hotel booking and settlement database Conferma analysed100,000 global hotel bookings at the end of June. The average length of stay was1.8 nights with total booked data reaching £7.2m. However, total billed data reached £9.4 m, a difference of £2.1m showing that discretionary spend on items such as meals taken at the hotel and room services is on average 30% higher than just the room rate.
Simon Barker, CEO, Conferma, said: “Our research shows that TMCs are short changing themselves by not looking at the complete picture using billed rather than booked data to calculate their commission rates.”
Conferma’s Rate Analyser also provides TMCs with rate trend data for all hotel bookings and notifies users of any favourable rate changes, allowing time to amend or rebook if appropriate. It allows hotel bookers to take advantage of improved deals if the rate drops between booking and arrival dates and enables them to compare rates against alternative properties in specific locations. Recent analysis of 10,000 hotel bookings revealed that 19% of bookings could achieve a lower rate, with the average saving equating to 14% of the original booked rate.
Barker continued: “What might be the lowest price available at the time of booking might not be by the time of the traveller’s stay. Rate Analyser allows TMCs to be confident that they have secured the best rate possible for their clients.”
In association with its payment partners, American Express, Barclarycard and AirPlus, Conferma creates a virtual card which corporates and their TMCs can use to pay and settle travel bookings in a secure environment as and when they are needed. In addition, Conferma provides accurate and powerful matching data which includes booking, itinerary and payment data which provides TMCs and their clients with a full audit trail right down to specific fields such as client cost centres.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
