HOME       Contact Us      Hire Us       Domestic Airlines        Railway Enquiry     Railway Booking     Hotels Abroad
February 25, 2010

Hotel study indicates significant losses from unmanaged programs

     New Delhi: Significant losses are expected from unmanaged hotel programs, a global study of hotels conducted by Egencia, an Expedia Inc. company, has revealed. Titled 'Hotel Cost Control: Savings and Opportunities', the study finds that companies risk tremendous annual budget losses through unmanaged travel activity. Pairing insight from corporate travelers, travel executives and real-world travel programs, the study has also examined common areas of loss, ways to prevent leakage and emerging opportunities for cost savings in an effort to establish industry best practices. "Delivering knowledge and insight to the industry is a key part of Egencia's mission," said Cecilia Routledge, Managing Director Asia-Pacific and Head of Global Business Development. "To educate businesses to better understand the opportunities available through proactive policy management and cost control, we invested in a dedicated study that delivers powerful information," she added. A global survey of 433 travel executives has revealed missed opportunities for corporations managing hotel spend, including 30 percent of them saying their companies did not have a hotel policy in place. Supporting data confirms other gaps, including: 65 percent do not have city-specific hotel per diems; 33 percent using expense reporting to monitor compliance; 34 percent requiring pre-trip approval to monitor compliance; 32 percent proactively informing all employees who book travel of the policy for compliance; 29 percent verbally reprimanding those who book out of policy, 12 percent sending e-mail notification to those who book out of policy; and 12 percent not enforcing compliance at all. According to Egencia, these statistics are significant because defining hotel per diems by city or actively enforcing a policy once in place can help make a travel program more fiscally sound. Likewise, requiring pre-trip approval can also boost compliance and deter unnecessary spending by palpable amounts. "Oversight and policy management are two important strategies which yield strong returns for travel buyers. They offer the opportunity to capture valuable data and reporting and help immensely with negotiating discounts and amenities like those we offer through the Egencia Preferred Rate program," said Routledge. This issue was further underscored by the results of a global survey of 1,000 travelers and arrangers. Fifty-five percent of those that responded noted that their company does not enforce or simply encourages them to follow a hotel policy. Thirty-two percent said their company does not have a hotel policy at all. The "Hotel Cost Control" study also took a deeper look at the benefits of proactive policy management and reducing leakage. For example, for Egencia clients with an average travel spend of 15 million dollars or more, those actively enforcing policy savings saved roughly 17 percent on average daily rates (ADR) versus those companies that do not enforce hotel policy. The study has also examined topics such as preferred supplier strategy and negotiation; managing change within your organization; monitoring and policy oversight and benefits of mandating In its 2010 Forecast and Hotel Negotiability Index, Egencia found that hotels represented fertile ground for buyers to negotiate better rates and realize travel cost savings. To address this issue indepth, Egencia will come out with a free White Paper to be made available on its web site www.egencia.co.in
More Travel News Headlines

Custom Search

Home    Contact Us
 Free contributions of articles and reports may be sent to indiatraveltimes@yahoo.com