Out-of-policy rate premium. Modeled at a 70% premium over negotiated rates, an internal planning assumption for the typical gap between last-minute or off-channel bookings and pre-negotiated corporate rates. Applied to hotel spend multiplied by estimated out-of-policy booking share (100% minus compliance rate).
Preferred supplier savings not captured. Programs with embedded compliance tools save an average of 12.8% per managed trip vs retroactive audit programs (Navan 2025). Applied to the portion of spend currently unmanaged.
Reconciliation and admin labor. Out-of-policy trips consistently take longer to reconcile and generate more expense exceptions than in-policy bookings. Estimated at 45 minutes of additional admin time per out-of-policy trip at a $55/hr blended rate.
Post-booking price drop recovery. Estimated at 6.2% of hotel spend, an internal planning assumption for what continuous post-booking rate auditing typically recovers, when a program isn't already running one. Applied to unaudited hotel spend.
This is a directional estimate, not an audit. Actual figures depend on your specific suppliers, destinations, and booking patterns. The diagnostic conversation is where the real number gets found.