According to a report in The Economic Times, American Express Business Travel estimates that companies collectively waste half a billion dollars annually by failing to strategically manage their hotel programme. In response, American Express Business Travel has announced the launch of a new hotel management solution called hotel eXpert that will identify and drive significant savings for businesses.
Jonas Borglin, Head, Advisory Services for American Express Business Travel, Japan, Asia Pacific and Australia, said, “Many companies lack sufficient control and visibility over their travelling employees and it is costing them significant dollars. In fact, 22 per cent of all travel bookings are non-compliant with corporate policy. In these instances it is the travelling employees, rather than senior management who dictate the terms and conditions of travel bookings.”
Borglin said, “We have discovered that inefficient hotel programme management alone, costs companies at least half a billion dollars a year, which regardless of the economic situation, is a sizeable sum. When a hotel programme is being managed inefficiently, employees stay at hotels of their own choice, spend company dollars on hotel services and amenities and even dictate the length of their stay.”
Borglin argued that over the past year companies have been swift to mandate stringent travel policies and in some cases complete freezes on spending, rather than examine missed savings opportunities. This has forced a reduction in corporate travel and significantly impacted the way companies do business.
He added, “Right now companies stand to make significant savings across all elements of corporate travel, especially when it comes to hotel bookings, yet many are not taking advantage of them. The economic downturn has seen hotel occupancy and rates decline globally and now that the hotel negotiation season has started, it is a good time for companies to start building partnerships with hotels that deliver sizable cost benefits. Our aim is to work with our clients to ensure savings are achieved and they become better equipped at strategically managing their hotel programme”, he added.
Source : hospitalitybizindia
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