Case Study

Australian freight & logistics | Streamlined bookings, compliance, and savings 

Trying to overcome challenges of expiring travel programs, booking difficulties, and low compliance, an Australian freight & logistics company sought to implement a solution quickly and efficiently. Enter the FCM Consulting team. Our experts stepped in with unparalleled expertise, and a commitment to providing swift and effective results to the company's pressing concerns.

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Challenges faced by the Australian Freight & Logistics Company 

Facing a myriad of challenges with a former TMC, this freight & logistics company was searching for a solution.

Hotel booking difficulties translated into a mere 16% program compliance rate, leading to rate hikes and a higher-than-average baseline rate for this company's travel program.

As the program failed to meet regional accommodation needs and lacked aligned rate inclusions per business policies, booking leakage became prevalent. This led to obscuring the true visibility of program costs. Booking leakage and non-compliance not only diminished the program's negotiating power in high-demand markets but also raised concerns about its ability to secure competitive rates and meet future budgets.

Meanwhile, with a growing emphasis on Environmental, Social, and Governance (ESG) compliance, the weak program adherence posed a considerable challenge. As the program's expiration loomed, the urgency to secure new hotel contracts within a condensed 3-week timeline became clear. 

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Expert solutions unveiled by the FCM Consulting team 

Facing these challenges head-on, the FCM Consulting team looked for a strategic and comprehensive solution. 
In the initial phase, a program diagnostic was conducted, finding the baseline program performance and highlighting areas for improvement. This diagnostic laid the groundwork for a targeted and effective intervention, highlighting our commitment to being experts in the field. 

Following this diagnostic, a tailored Request for Proposal (RFP) was crafted, injecting a surge of market competition, driving rate reductions, and aligning seamlessly with the unique travel profile of this Australian freight & logistics company. This step, grounded in our knowledge and experience, aimed to rectify the program's historical shortcomings. 

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Aligning strategies with Environmental, Social, and Governance objectives 

Recognising the company's commitment to ESG compliance, the FCM Consulting team also incorporated ESG criteria into the hotel RFP. Customised data became the compass, guiding decision-making processes and ranking potential supply partners based on the client's ESG objectives. 

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Strategic RFP tailoring driving market competition and rate reductions 

Leveraging our expertise in hotel market intelligence, the RFP release was strategically timed to coincide with negotiations, ensuring maximum rate reductions in markets experiencing upward trends. Clear articulation of hotel category objectives paved the way for targeted negotiations and supplier engagement, showcasing our precision in dealing with complex challenges. 

In a pioneering move, our team harnessed partnerships with air and hotel suppliers to enhance the traveller experience. Rate inclusions were meticulously aligned with traveller needs and business requirements, ensuring seamless bookings through the Online Booking Tool (OBT) and the newly integrated TMC. This approach, grounded in our partnerships and tools, redefined the standard for traveller satisfaction. 

A structured program management framework was deployed, aligning with our partnerships approach. Continuous sourcing strategies were implemented to support the evolving needs of the client, reflecting our commitment to managing businesses through our well-defined processes, skilled personnel, and latest tech tools. 

Results that speak volumes 

The results of this transformative intervention were nothing short of extraordinary, firmly establishing the success of the team's approach. The statistics spoke volumes: 

  • A perfect 100% of hotels now bookable through the TMC, demonstrating the seamless integration of our solutions into their existing systems. 
  • A remarkable 16.2% hotel category savings showcased our ability to drive substantial savings while maintaining quality. 
  • A significant improvement in program compliance, reaching an impressive 81%, reinstated the company's negotiating power in high-demand markets. 
  • A robust 75.2% hotel attachment rate underscored the success of our tailored negotiations and supplier engagement strategies. 
  • A comprehensive program coverage of 91.5% marked a significant improvement in the visibility of program costs and a reduction in booking leakage. 

These remarkable results were achieved within the first quarter of the program launch, affirming the swift and precise nature of our solutions. The success story of this Australian freight & logistics company stands as a testament to the transformative power of FCM, where expertise, experience, and accurate data analysis converge to redefine industry standards and drive success. 

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