CASE STUDY
Delivering a 1,100+ strong outsourced hotel program solution
Charged with totally overhauling a government hotel program, FCM Consulting seamlessly curated a fully-tailored outsourced solution for long term success.
The challenge: Lack of visibility and accountability
With just 35% compliance the hotel program was suffering from low booking transparency, poor contract negotiating power, limited accountability and uncaptured data. With no inventory quality control, a lack of oversight and out of policy bookings, the client was missing out on volume-based discounts. Low vendor response rates and flagging hotel participation was driving out of policy bookings and significant program leakage.
Our approach: Vendor engagement and traveller compliance
FCM Consulting took on the role of problem solver, removing client pain points and delivering a totally outsourced hotel program. Step one, was to strengthen the program by recruiting competitive hotel partners. To maximise the client’s budget FCM Consulting forecast room-night volumes, negotiated volume-based discounts and standardised rates across all hotel destinations.
To drive program compliance, the client’s channel management solutions were fine-tuned to streamline the booking process (via a central platform). This strategy was conceived to improved online program visibility, clearly display negotiated rates, improve efficiency and reduce booking errors.
The results: Program coverage reaches 93%
FCM Consulting’s proactive hotel program management strengthened existing vendor relationships and attracted new properties. This strategy effectively expanded the program’s reach by 20% and achieved 93% coverage. Strong negotiation skills achieved a $31 average paid rate improvement, while employee safety and comfort was ensured with travellers staying in vetted hotels to boost compliance by 29%.
The complex program, featuring over 1100 properties, was streamlined with a tailored booking process allowing access to platforms beyond the Global Distribution System (GDS). Dedicated FCM Consulting support continues to deliver ongoing optimisation and performance tracking.
By implementing a strategic program overhaul, FCM Consulting delivered a tailored outsourced hotel program solution providing a tangible return on investment (ROI).
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