CASE STUDY

Hotel compliance

About

A global tech firm with operations in 18 global locations, and an annual travel spend of $60 million. 

The firm had challenges with getting travellers to book the right hotels. 

Global consolidation

After trading successfully with FCM in the USA for many years, the decision was made to globalise the programme into Europe and Asia to get a handle on the global spend and start to drive costs down and preferred compliance across the entire global operations.

FCM successfully implemented all markets on the back of the decision and found out, after data buyer behaviour tracking data was collected, that travellers were not booking hotels with an attachment rate of 50% globally. This resulted in little leverage for future negotiations, let alone traveller experience and risk management.

Like many first time global consolidated programmes, the initial hotel program was very US centric due to the lack of previous global data and local country buy in.

With the help of FCM Consulting, and in order to further globalise the programme and gain greater global buy in, every country was solicited for local input and feedback on the new global programme. This allowed all individual countries to have a say and sense of ownership in the new programme, which ultimately resulted in 100 additional hotels being added to the programme.

In coordination with the new programme being rolled and a new policy mandate to book all hotels via FCM, attachment rates have since risen to 80% with most continued leakage being direct customer rates or internal meeting spend.

Results

Initial global hotel volume was $13m with a 14% average discount based on the US contract report. This is an estimated $1.8m in savings. 

New hotel volume was $21m with a 17% average discounts - an estimated $3.4m in savings.

This meant overall hotel volume increased by $8 million globally, while increasing the discount percentage by 3%. This added approximately $1.6m in additional savings and 30% increase to hotel compliance. 

Looking to improve your business travel experience? Let’s talk.