Corporates seek TMC advice to optimise hotel spend

Corporates seek TMC advice to optimise hotel spend

Corporates are focusing on tighter travel policies and procedures to save on accommodation costs, according to FCm Travel Solutions. According to FCm, clients have been working closely with their travel management companies (TMCs) and preferred hotel suppliers to streamline their accommodation programmes and optimise hotel spend. “During the 2011 hotel contracting period in the second half of last year, companies were enforcing tighter travel policies and procedures to contain costs on hotel expenditure and correct non-compliant traveller behaviour,” said FCm’s global and client hotel programme general manager, Joe McCormack. “As a result of rebounding market conditions, hotels have been reviewing client rates to ensure contracted room nights are being delivered.” McCormack said that while most corporates had finalised their hotel programmes for 2011, in the next 12 months he expected to see companies continue to focus on procedure, policy and consolidation with their preferred hotel suppliers. “The changing global economic landscape and steady return of business travel volumes will create greater demand for accommodation, which will affect hotel occupancy, availability and rates,” he concluded. “In this kind of environment strategic travel management from a TMC with a global platform of hotel product, ability to benchmark hotel programmes and strong relations with suppliers will become even more important for long term costs savings.”

Gary Marshall
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Gary Marshall
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