PROJECT: Revealing Hotel Cost Savings

Challenge

A Fortune 500 company was finding that lower oil prices and budget reductions were significantly impacting many controllable expenses, in particular, Travel expenses. They turned BottomLine Group’s Travel team to uncover cost-saving opportunities

Approach

With extensive experience in the oil and gas sector, our Travel team took a deep dive in assessing hotel supply and demand in the client’s primary markets. Against this backdrop, additional opportunities to mitigate spend were identified including a market tier shift, mandatory WIFI inclusion and realignment of key supplier partnerships

Bottomline Results

Through our team’s guidance, the client was able to elevate the level of support for its program saving goals from high volume hotels. In particular:

50% of the hotels in the preferred hotel program shifted to be in the more cost effective upper-midscale market tier

Average negotiated hotel rate in the U.S. became 2.2% lower than other clients with preferred rates at the same properties

Total hotel spend in the U.S. was forecasted to increase 1.6% (versus an industry average of 5.5%)