Defense firm saves $2 million on hotels with Dynamic Performance Management

Case study: U.S.-based global defense and cybersecurity firm saves US$22 million and gains actionable insights.

For years, the hotel contracts for a U.S.-based defense and cybersecurity firm were pretty straightforward. The company used most of the same hotel properties over and over. It negotiated rates annually, factoring in per-diem amounts allowed by its government clients.

Then two important things changed. Hoteliers began shifting to pricing models that fluctuated based on supply and demand. And the company switched to a strategic sourcing process that was dynamic, too. The travel program needed to be able to demonstrate the value and performance of its hotel contracts throughout the year.

A BCD case study details the solution. The company’s travel program leader turned to Dynamic Performance Management™ from Stay by BCD Travel to gain access to real-time analytics and regular, data-centered insights. Stay consultants advised her about how to act on that information to proactively manage hotel supplier performance. The results were impressive:

  • $2 million saved on hotels in the first year, a savings rate of 3%
  • Preferred rates available 73% of the time vs. 60% when DPM was adopted
  • Ongoing hotel program assessment and adjustment
  • Reduced time and effort on annual hotel sourcing
  • Improved hotel experiences for travelers

“Dynamic Performance Management has taken our hotel program to a whole new level,” the travel leader said. “It really highlighted the issues in our program, and I was able to make immediate course corrections. That helped me preserve savings and respond to service issues affecting travelers before they became real problems.”

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