Hotel programme management

by Tim Kropp, HRG Business Manager

In partnership with HRG, a large technology business sought to expand its hotel program, lower costs through the negotiation of lower preferred rates and improve traveller satisfaction.

We carried out a spend analysis using HRG MIS and card data to highlight cities with the most room nights and gain visibility on where travellers were staying to ensure an enhanced program would continue to meet their needs.

We also integrated Sabre’s Hotel RFP to automate the solicitation process which enabled us to identify and select properties, issue RFPs, receive completed bids and negotiate with properties before making a final decision.

The result has been significant with a manual process replaced by a fully automated solution. In year one there was no administration time saving because the RFP database had to be loaded with the hotel information. However, in year two the hotel program took 30% less time to manage even though the program had more than doubled in size.

The automated process also enables us to issue bids throughout the year, as we receive feedback from travellers and the client pushes into new destinations.

The client’s hotel program has grown from 75 hotels in North America to 198 properties in seven countries.

The program is delivered via a web-based directory which is posted on the client’s intranet and highlights any added value deals such as complimentary breakfast. Compliance has increased as travellers and bookers can easily access preferred hotel information.

There have also been financial gains with an 18% reduction in average room rates to $126 in 2010 and further savings anticipated in 2011.

The project has provided the HRG team with further valuable experience and insight into expanding a hotel program which can be brought to play with other clients.