Given that as much as four percent of a company’s total revenue is spent on business transient travel for employees, and within that spend, 15 to 25 percent of their travel budget goes towards hotel costs, it’s not surprising that companies seek ways to economize business traveler expenses and improve overall management of travel programs.
Cost control isn’t the only reason companies want to better manage their travel programs. Transient travel programs help organizations manage risk by controlling the hotels where their employees are able to stay. They also enable travel managers within corporations to service travelers while ensuring that hotels are complying with the terms of their agreements.
Benefits to Companies
Transient travel programs simplify and streamline hotel sourcing, eliminating exhaustive hotel searches, extended rate negotiations, price compliance, and other challenges for travel managers. Organizations that choose a solution like Cvent Business Transient (BT), powered by the industry’s leading hotel sourcing software, can realize the following benefits:
Streamline RFP Process
Transient travel solutions help companies streamline the time-intensive hotel sourcing process by automating formerly manual tasks and providing services to increase visibility and access to data during the RFP process.
A solution like Cvent BT connects travel buyers with hotel suppliers through an integrated platform to access the largest marketplace of hotels available. The two parties can negotiate preferred annual rates, benchmark these rates against standard industry pricing, and ensure rate accuracy and compliance with approved agreements.
Travel manager buyers have a variety of purchase options, from a “starter bundle” of products or more specialized products for RFP, business intelligence, and rate integrity to suit their specific business needs.
Cvent BT enables buyers to benchmark hotel bids processed through its system by location, time of year, rate ranges and other criteria to help in their sourcing and selection process. The system updates nightly and offers the most comprehensive benchmarking capabilities available.
Business transient travel solutions deliver proven ROI to companies across the sourcing, benchmarking and audit phases of their program. Efficient sourcing and negotiations can save 50 percent in time and 2 to 5 percent in rates during the sourcing step. Robust competitive benchmarking can shave 3 to 6 percent off their hotel spend. And the system eliminates room nights incorrectly loaded by hotels by 10 percent. It is estimated that 30 percent of hotels don’t upload the correct rate.
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