Hotel solutions provider, HRS, claims its new Global Sourcing Study indicates travel buyers could make substantial savings by simply reviewing the effectiveness of their programmes.
The HRS report claims companies waste a savings potential of about £20bn, globally, on hotel procurement because negotiations are mainly carried out by the companies themselves.
The survey, the fourth in a series of papers published by HRS, examined the hotel procurement process and received responses from more than 100 customers in nine markets worldwide.
Jon West, managing director for HRS in the UK and Ireland, said: “Last year, £216bn was spent on hotel overnight stays, accounting for 27% of total travel costs.” He believes travel managers should access data and consultation services to optimise their hotel procurement.
West says chain hotels account for approximately 45% of the negotiated hotel volume – in 28% of all companies, this share is in the 70-100% range.
“Due to insufficient resources, analysis tools and benchmark data, a lot of travel buyers are deterred by individual hotels, even though these have the biggest share in the worldwide hotel market, with 88% in Europe and 95% in Asia. This simply does not make good business sense.”
The HRS Global Sourcing Study ‘The Right Mix: Saving through a Balanced Portfolio’ can be downloaded free from www.hrscorporate.com/blog