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Optimized Hotel Attachment Case Study

Optimizing hotel attachment to further reduce costs

Challenge
A customer of ours, a well known consumer goods company,  was using technology to their advantage and were heavily using our online booking tool—and  successfully— with an online adoption rate of 84%¹. But booking online was not the only technological opportunity where they could save money. At the time, they had the option to add a hotel stay to the reservation via the online booking tool; however the process needed to be streamlined. The multiple processes created uncertainty; the company did not know if they were getting the best rates and if their booking methods were in compliance with their travel policy.

As their Travel Management Company (TMC), we tracked travel patterns and identified opportunities to enhance their online booking capabilities to drive duty of care and improve negotiations with vendors. All of these opportunities had a common solution: hotel attachment.

The company was onboard with our proposed solution. They even set an initial goal of 48%¹ hotel attachment, where their current baseline was at 38%¹. Knowing their online adoption was going so well, we knew we could help move that needle.

Solution
We conducted an in-depth analysis of the company’s travel program including identifying how the online booking tool treated hotel bookings. Further gaps were identified and corrected within card and travel reporting from a compliance and duty of care perspective.

We collaborated to create a process where hotel bookings were streamlined through the proper booking format where preferred hotels were used. With consistent preferred hotel bookings, it created better discounts on hotel stays, which inevitably generated savings.

Additionally, the online booking tool functionality enhanced data capture with more comprehensive travel information. All of this meant they could improve policy compliance and provide better duty of care.

Training and employee education
We created seminars and training sessions to educate travelers and travel arrangers on the new booking process, including how to add a hotel stay to existing air reservation. But teaching employees on the new process was not the only objective of the training. By educating travelers on the importance of a self-serve environment, travelers were able to understand their role in making their travel program more effective.

As explained by their American Express Global Business Travel (GBT) Client Manager, “These training sessions demonstrated how improved booking practices led to better vendor negotiations that created a reduction in travel spend, along with compliance adherence—all leading to improved duty of care and making sure travelers get to and from their destination safely.”

Results
It was easy to notice the impact with such strong outcomes.

  • Increased hotel attachment to 65%¹ , surpassing the company’s initial goal of 48%¹
  • Improved compliance by an impressive 8%¹ in six months, with a 19%¹ improvement within the first two months of 2016
  • Leveraged negotiation abilities with preferred vendors to reduce costs.


¹Source: American Express Global Business Travel Reporting