As promised, here’s more on the story of hotel clusters and why it’s so relevant to your hotel sourcing efforts. The link above takes you to the must-read Procurement.travel‘s online site, where you’ll get an in-depth look at what clusters are and how they can be used to make your hotel sourcing life easier and more effective. For a handle on the key concepts behind clustering, see this post. In short, hotel clustering’s main benefits are:
- Creates highly relevant neighborhood-level markets for rate benchmarking and negotiations
- Eliminates hundreds of non-relevant hotels from the bid list and downstream negotiation process
- Calculates “best fit chain(s)” and “best fit brands” for each client, in every major country
- Quickly identifies actionable compliance and tier-down savings opportunities
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