The Challenge
A large technology services provider had a hotel program that, whilst strong in its core markets, was affected by high levels of leakage in its secondary markets. Additionally, within the core, they suspected that there were large levels of rate non-compliance, both at the point of booking and especially at checkout. This meant that there was a solid ceiling above which it was difficult to improve the level of value gained from the hotel program.
The Solution
The company deployed PredictX, which ingested both booking and payment information, together with the agreed rates. These rate agreements were convoluted and consisted of many blackout periods, seasons and some dynamic options. However, PredictX was able to manage this and align all bookings - and subsequent payments - with the rate program.
Furthermore, the deployment of Trip Builder created a data environment where bookings and payments were linked. This meant that it was possible to see which payments (coming from either credit cards or directly through the expenses system) were not tied to bookings. This in turn meant that these payments could be addressed, behavioural changes made and even spend brought in to negotiations with the hotel providers.
The Impact
The implementation of our services meant that:
- Leakage and ancillary data was use effectively during the sourcing process.
- A hybrid system was created where specific TMC rates were used to represent part of the activity.
- The sourcing manager is able to utilise non-TMC activity as well as spend on informal meetings, meals and other activities to give a true revenue picture to their suppliers.