Out-of-policy bookings led to overspend on hotel and risk of being underprepared in a crisis.
Travel services consolidation, policy and process tweaks, and traveler education helped bring rogue hotel bookings back into the fold.
A 30% boost in in-policy hotel bookings lowered the company’s annual hotel spend by nearly $185,000 USD and bolstered its mission to keep employees safe on the road
When an American Express Global Business Travel (GBT) client discovered that rogue travelers were making out-of-policy hotel bookings, which was compromising its bottom line and ability to care for its traveling employees, it decided change was in order. Holes in itinerary information could have made it difficult for the company to locate its employees on the road during an emergency. Plus, it left money on the table, so to speak, since the company wasn’t capturing the preferred rates it had negotiated with select hotel chains. What’s more, the company’s use of different travel management companies in different regions made it difficult to communicate one consistent message about its travel policy to employees.
Travel services consolidation, policy and process tweaks, and traveler education helped bri.ng rogue hotel bookings back into the fold.
Within a year, the company and GBT’s collective efforts grew the number of compliant room night bookings by 30%—from about 41,000 in 2016 to 54,000 nights in 2017. This was a significant win in terms of the company’s ability to know its travelers’ whereabouts and to take care of them in an emergency. And because these bookings took advantage of the company’s negotiated rates from hotel vendors, there were savings to boot. The average room rate dropped by approximately $2 USD a night, which represented close to $184,000 USD in savings in 2017.1
Thrilled by the enhancements to the company’s hotel program, GBT and the client both credit their long-standing working relationship as the driving force. By keeping an open dialogue and trading best practices, the two teams inspire each other to keep innovating and improving.
1American Express Global Business Travel reporting.