HRS and ACTE Global present the results of the new study "A new horizon in the Hotel Sourcing"
Changes in Hotel Procurement lead to greater savings and satisfaction of travelers in the Corporate Travel Program
ACTE Global (Association for Corporate Travel Executives) today announces the results of its latest study carried out in collaboration with HRS is focused on illustrating how the methods of corporate hotel procurement are constantly evolving
The study, " A new horizon in Hotel Sourcing ", reveals what are the changes underway for travel executives : over half (51%) of the programs have changed the approach to the hotel sourcing in the last 3 years and the majority of those who have implemented these changes claim to have obtained strong savings thanks to the new direction taken.
Driven by the different pressures deriving from the sector, including the increase in hotel rates, a fragmented marketplace and the temp or used by the traditional hotel sourcing process, 48% of the travel managers who made changes, decided to outsource some or all of the hotel procurement activities to a global hotel service provider or to a third party specialized part
The research reveals other trends that indicate significant changes in the ways in which companies – especially large ones, with multinational programs – approach negotiations with hotels:
- Companies that work with a global hotel service provider or a consulting firm they record savings of 7% while those working with a travel management company (TMC) report savings of 4% per year .
- About a one in ten (11%) program has implemented continuous sourcing ( Continuous Sourcing ), a relatively new practice providing hotel sourcing throughout the year, as opposed to the traditional RFP process limited at the end of each year. These companies reveal positive changes, including greater traveler satisfaction, financial savings and greater portfolio flexibility .
- One of the main barriers to continuous sourcing is training: on 42 % of travel executives who have not implemented it are not familiar with it . About a third (31%) cite the lack of time or resources.
- One fifth of travel executives reports that it does not take into account the changes that may impact their hotel programs, such as the emerging need for a new market, if not during the period of the RFP. This suggests that, for the remaining managers who monitor changes during the year, continuous sourcing can help them respond to changes more quickly .
"We live in an era of information overload and constantly changing, so failing to respond quickly to market developments can be very expensive for travel managers, both financially and by traveler satisfaction, "says Greeley Koch, executive director of ACTE." Over half of the first users of continuous sourcing has achieved savings, demonstrating how travel managers can take advantage of advanced methodologies to be ready for changes and position themselves as leaders in their organizations. "
" Hotel sourcing offers the best financial and strategic opportunities for travel programs "Declares Marco D'ilario, Vice President Sourcing Solutions for HRS. "This study describes with indisputable data a sector in which programs are being modified based on new perspectives not only linked to savings, but also to better performances. This is a clear redefinition of the RFP process. "
For more information on the study" A New Horizon in Hotel Sourcing, " download the study here https://corporate.hrs.com/en/solutions / hotel-sourcing-new-perspectives.
The results of the study will also be discussed at the ACTE New York City Global Summit and Corporate Lodging Forum during a lunch-and-learn session on 30 April.
***  About the Study
ACTE members worldwide (Americas, 38 percent, EMEA, 38 percent, APAC, 24 percent) were interviewed electronically from February 20 to March 5, 2018, on strategies and challenges the hotel sourcing process. A total of 226 executives responded to the study, which was conducted by Rockbridge Associates, an independent market research firm.
ACTE Global (Association of Corporate Travel Executives) for 30 years, he has directed the management of corporate travel. ACTE, as a global association of senior management members in over 100 countries, paves the way for educational and technological advances that make business travel productive, convenient and simple. ACTE's commitment and initiatives are continually promoting significant advances in terms of security, privacy, diligence and compliance, as well as passenger productivity, in support of global trade. To find out more, visit www.acte.org.
HRS simplifies business travel. Corporate travel managers and business professionals around the world rely on HRS to find the best accommodations and simplify all business travel management processes. In addition to offering professional hotel sourcing services and the negotiation of company tariffs with hotels, HRS optimizes online payment processes for hotel stays and events and the issue of automated invoices. More than 3,000 companies worldwide rely on HRS Global Hotel Solutions. Among its customers, it boasts global companies belonging to the "Fortune 500" list, such as Google, Siemens, Alibaba, China Mobile and Volkswagen. HRS sets clear objectives: savings for companies and a high degree of traveler satisfaction. Founded in Cologne in 1972, HRS now has over 1500 employees in 34 offices around the world, with offices in London, New York, Sao Paulo, Shanghai, Singapore and Tokyo.
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