Travel buyers should concentrate on driving bookings to preferred hotels to reduce the costs of their programmes, according to research commissioned by technology firm Amadeus.
Hermes Management Consulting looked at the travel and entertainment (T&E) spending and processes of 11 major firms based in western Europe as part of the study entitled Corporate Travel Management in Western Europe: Challenges and Opportunities.
The study found that while flight tickets accounted for 70 per cent of travel spending, it was the second biggest item - accommodation - which offered the most potential for further savings.
Hermes said that companies which had deals with preferred hotel companies were able to achieve average discounts of 16 per cent.
The report added that one of the key elements to making the most of hotel deals was to ensure that they were highlighted in online booking tools (OBTs) “to ensure they achieve prominence on the hotel search display”.
Hermes also gives a series of recommendations to buyers such as improving internal processes including booking procedures, expense claim management and policy compliance.
The consulting firm added that other elements that could improve travel procurement included the greater use of no-frills airlines and consolidation of trips. It also suggested that corporates should introduce “top-down enforcement of strict travel policy compliance and OBT training/adoption”.
The report said: “The message to hotel companies therefore is clear: hotel programme participation helps corporations to focus their accommodation spend in properties which provide them with preferred rates.
“To assist with these negotiations, it is essential for corporate travel managers and hoteliers alike to have full visibility on booking figures and total accommodation spend, through shared data reporting.
“Finally, hotels should not underestimate the power of user-generated content (reviews, recommendations) when business travellers are selecting a property from within their allocated accommodation pool.”
To see details of the report, click here