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While hotel rates, airfare and car rental rates have increased over the last year, the latest data from Travel Leaders Corporate- a leading corporate travel management company-shows the importance of corporate rates when it comes to reducing costs.
According to Travel Leaders Corporate, the average daily rate (ADR) for a hotel room in United States increased by 4 percent in the third quarter of 2014, compared to the third quarter of 2013. The ADR for an international hotel room increased by 1 percent during the same time period.
To highlight the significance of landing a corporate rate, Travel Leaders Corporate compared hotels' "best available rate" with Travel Leaders Corporate's corporate rate among the top 10 U.S. cities (cities ranked based on number of nights booked by business travel clients).
The top five U.S. cities within those 10 were (in order): Chicago, New York City, Washington D.C., Los Angeles and Dallas.
Business travel clients saved an average of 11 percent, 1 percent, 10 percent and 19 percent in Chicago, Washington D.C., L.A. and Dallas, respectively. New York City was the outlier, costing 9 percent less for the best available rate than the corporate rate.
Overall, Travel Leaders Corporate business travel clients were able to save an average of 20 percent on hotel rates in the top 10 cities.
"As an industry, we're seeing a continuing trend of increasing costs for domestic hotel accommodations," Travel Leaders Corporate President David Holyoke said. "What Travel Leaders Corporate is able to do for our clients is mitigate that cost increase by gaining insight into their travel spend and providing analysis on several different factors so we can negotiate smarter on their behalf. Because of our sophisticated level of research and the strategies we employ, including utilizing Travel Leaders Group's proprietary Worldwide Hotel Program and Select Hotels & Resorts, we are often times able to beat the best available rate."
In addition, the average total base cost (air, car and hotel) for a domestic business trip has increased from $969 in the first quarter of 2014 to $1,002 in the third quarter. The average total base cost of an international business trip has increased since the first quarter ($2,427 to $2,502), but decreased since the second quarter ($2,514 to $2,502).
The average domestic airline ticket price increased 2 percent in the third quarter of 2014, as compared to the third quarter of 2013. The average cost of an international airline ticket increased 1 percent during the same time period.
When it comes to car rentals, the average cost per day increased 1 percent in the third quarter of 2014, as compared to the third quarter of 2013. The average cost of an international car rental spiked 5 percent during the same time period.
The latest data from Travel Leaders Corporate highlights the significant advantages in working with a company that can use its resources and experience to decrease business travel expenses. As more and more travel companies expand their horizons and travel the globe, such partnerships can be mighty handy.
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