Production share

For a corporate rate agreement, room nights consumed on the negotiated rate over the volume the rate was priced on, per account and per property. Under-producers are a compliance conversation; over-producers have a rate priced for less business than they bring.

DefinitionFor a corporate rate agreement, room nights consumed on the negotiated rate over the volume the rate was priced on, per account and per property. Under-producers are a compliance conversation; over-producers have a rate priced for less business than they bring.

Leakage

The same account's travellers booking public rates where the agreement applies. Needs the company on the reservation.

Expired codes

A negotiated rate code with no agreement on file is still bookable and is its own leak.

How it is computed

Room nights consumed on the negotiated rate divided by the volume the rate was priced on, per account, year to date against pro rata.

Example

An account committed 1,200 nights and has produced 410 after eight months: 51 percent of the pro rata 800.

Where it goes wrong

Rates renewed each year without checking what the account produced.

Articles that use this term

Wallet share and penetration · Hospitality

Corporate rate production: rooms committed against rooms consumed per account

How a hotel group's sales team measures production against negotiated corporate rate agreements from the reservation export: room nights consumed per account per property against the volume the agreement was priced on, the accounts under-producing and the properties they are not using, the accounts over-producing whose rate is now too low, and the list for the annual RFP season.

16 Sept 20262 min read