Global Hotel Program Assessment & Strategy, Strategic Sourcing and Management

Consulting Objectives

The client engaged TCG to perform a first time global hotel program consolidation to include multi-companies within their global network. The following deliverables were achieved within this assignment:

Evaluation and opportunity assessment of travel patterns and hotel usage based on historic data analysis.
Delivered targeted hotel solicitation list with recommended markets and hotels identifying spend and room nights.
Developed strategy and tactics to deliver RFP results to all members of the internal hotel team globally.
Strategic and tactical management of the hotel RFP process with ongoing benchmarking through final delivery of preferred hotel program.
Program implementation, including Online Hotel Directory and file extracts for On-line Booking Tools.
Rate audit management and supplier follow up to ensure accuracy of all rate offerings.
Ongoing program maintenance and supplier management.
Program coordination with company Enterprise program.

Approach

Data consolidation and ‘gap analysis’ of multiple objective data sources (hotel vendor, agency booking, card spend data) and data collection and feedback from internal stakeholders.
Presented recommendation for markets and hotels to solicit through a targeted hotel report.
Managed local market input through various internal resources to limit properties in market
Ensured appropriate market coverage in market for all companies participating.
Identified additional areas of opportunity for cost savings through driving compliance to preferred vendors and increased communication of preferred hotel program.
Continued support was provided through supplier management rate loading and audit and ongoing management of the preferred hotels and online hotel directory.

Tactics/Tools

Project management of hotel sourcing process establishing objectives, timeline with key milestones and deliverables.
Consolidation of all hotels spend data across all company locations.
Established company footprint and established global strategic sourcing objectives across all participating companies.
Source global hotel program using industry specific electronic RFP solution.
Provided comparison and benchmarking to peer group across key markets.
Managed negotiation process through final acceptance
Established marketplace credibility for company for year-over-year improvements, ability to deliver on commitments and increased recognition of combined companies in marketplace.

Client Profile

Scope of Services: Global

Primary Business: Leading Technology Solutions Provider

Consolidated Employees: 380,000

Managed Hotel Spend: $30M USD

Number of RFPs Distributed: 900

Number of Prederred Hotels Selected: 700

Countries Included: 45

Markets Included: 250

Overview

First time consolidation of multi-company data allowed for greater volume leverage in negotiations
Clearly communicated RFP documents; establishing relationships with suppliers and strategic selection of hotels yielded a 97% response rate to RFPs.
78% of hotels were accepted into the preferred hotel program establishing a solid efficiency rate of RFP sent and ROI on program cost.
86% of ‘Total Hotel Spend’ was included within preferred markets where hotels were accepted into the hotel program providing increased market coverage and availability of preferred hotels to travelers.
93% of hotels rates accepted were LRA (Last Room Available) increasing option to receive rates negotiated
$13M in projected cost avoidance against industry benchmark rates, mitigation of paid expenses by incorporation of breakfast and internet in rates negotiated and direct renegotiation of rates offered versus rates accepted.