Optimising hotel spend and improving programme
compliance continue to be key priorities for organisations, given that on
average almost 40% of a company’s total travel budget goes on hotel-related
expenditure (CWT T.M.I., 2009).
Much has been written and discussed on the benefits
and challenges in managing this category of spend effectively, particularly
given the changes in hotel pricing models and the impact of ‘Managed Travel
2.0’.
In the end, whilst the debate rages, the fact is that
the vast majority of organisations do still undertake the rate sourcing process
in some fashion on a very regular (usually annual) basis and one of the loudest
and – to date – most challenging questions is ‘what is the return on
investment’?
To put facts and figures to the anecdotal
evidence, Lanyon commissioned a report to look into this very conundrum.
The figures show a very powerful reason for
embracing the concept of Total Hospitality Spend Management:
The client’s 3-year investment of US$415k (GB£254k /
EUR303k) generates a positive return in 4.2 months with a return on investment
(RoI) of 448%.
For a copy of the full
report and to find out more about Lanyon's services please visit them at the Business Travel Show on stand B736. Register now at www.businesstravelshow.com.
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