Market Overview

HRS Unlocks $662 Million in Corporate Hotel Savings via Industry-First Rate Filtering Automation

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AI-based Technology Assures Travelers Book Compliant Rates on all
Preferred Booking Systems

A 2017
research report from the Global Business Travel Association (GBTA)

found that one in six hotel rates (17 percent) in shopping channels are
wrong, with corporations
paying 14 percent more than they negotiated when incorrect rates are
booked
. HRS,
the leading Global Hotel Solutions provider, has often seen error rates
of 20 percent or higher for too many of the programs it serves; the
company estimates the cumulative industry lost savings due to incorrect
hotel rates to be a stunning $662 (€573) million.

This error rate… and the losses incurred by companies because of these
incorrect hotel rates… would be unacceptable in any other area of
corporate procurement.

HRS
solves this years-long challenge via today's launch
of new real-time rate filtering automation
. Powered by artificial
intelligence, the patent-pending technology addresses the issue of
incorrect and so-called "squatter" hotel rates in the booking systems
used by corporate employees. The Rate Filter prevents incorrect rates
from being shopped, marking a quantum leap in corporate hotel rate
assurance with the potential to deliver millions in savings across the
global managed travel industry.

While rate auditing and re-booking – typically reactive solutions –
helps corporations recover some savings, HRS' new rate filtering
technology, the industry's first global machine-learned and
channel-agnostic compliance solution, goes one step further. The
technology identifies incorrect rates and prevents them from appearing
in shopping channels (GDSs, online booking tools, mobile apps, etc.)
used by business travelers.

"This filtering automation transforms the hotel rate accuracy
conversation," said Martin Biermann, vice president of product
development and innovation for HRS. "The rampant errors in booking
systems today costs companies more than half a billion dollars. With
HRS' Rate Filter, corporations will see more of the savings they
negotiated, and travelers can be assured they are following designated
company booking policy."

HRS is a leader in the effort to enhance hotel rate accuracy. For one
global manufacturing firm, HRS identified errors that would have cost
the company more than $9 million (annualized) had they not been fixed.
The extrapolated lost savings figure – $662 million across the industry
– highlights the magnitude of the hotel savings at stake.

"We're disrupting the global managed travel ecosystem by putting
customer success first," said HRS
CEO Tobias Ragge
. "We use data and technology to build better
solutions for today's complex hotel marketplace."

HRS will have more information on the new rate filtering service at the
upcoming GBTA
conference in San Diego
(August 12-15). HRS
is located at booth #3508
. HRS will start rolling out this global
solution after the GBTA event.

HRS – Global Hotel Solutions

HRS simplifies business travel. Corporate travel managers and business
travellers around the world trust HRS to find the best accommodation and
simplify all processes related to their business travel. In addition to
professional hotel sourcing and the negotiation of corporate rates with
hotels, HRS optimises paperless payment of hotel accommodation and
meetings as well as automated invoice processing. More than 3,000
multinational corporations rely on HRS Global Hotel Solutions. Customers
include global players from the Fortune 500, including Google, Siemens,
Alibaba, China Mobile and Volkswagen. HRS pursues clear goals: savings
for companies and high traveller satisfaction. Founded in Cologne in
1972, HRS today has more than 1,500 employees in 35 offices worldwide,
including Dallas, London, New York, São Paulo, Shanghai, Singapore and
Tokyo. Further information at corporate.hrs.com.

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