UK businesses waste money on hotels

UK businesses waste up to 50% of their hotel expenditure budget, according to a survey by corporate hotel and conference management organisation BSI. Around £9bn is spent on hotels in the UK every year, but the survey finds that many companies do not manage this spend effectively. The key findings are: Half of bookings made do not guarantee the best rate 20% of those responsible for hotel bookings do not have any policy in place to govern their spending, and of those that do, most believe that bookings are still being made outside the company’s official ‘travel policy’ Less than a quarter know exactly what is spent on hotel bookings each year One in four hasn’t reviewed hotel expenditure in the last two years SMEs know less about hotel expenditure than other-sized companies An average corporate client for BSI spends around £4million per year on hotel bookings after cost savings. However, many companies do not implement effective cost-saving techniques, meaning that expenditure can actually total much more. BSI predicts that by implementing a best rate guarantee, companies will make a 15% saving on hotel bookings. By also implementing a rigorous hotel bookings policy, including caps on hotel rates, BSI predicts that companies can save another 10-35%. Commenting on the findings, BSI group managing director Charles Cockell said: “Hotels play a crucial part of many fast-moving businesses, and costs can soon mount as employees travel regularly. However, there are ways to cut costs. Guarantees should always be given that the rate is the best available for that room, strict guidelines should be in place governing the criteria for selecting rooms, and the person in charge of this procurement area should regularly monitor expenditure. “We’ve noticed many cultural changes in the trends of hotel bookers, and this piece of research confirms just what we suspected – many are not managing hotel expenditure effectively. Airlines have been under scrutiny for many years, with huge cost savings made on air travel as a result; however, as annual hotel expenditure can often exceed that of air travel, it makes sense now to shift the focus. There are actually many ways to cut costs, but companies need to recognise hotel expenditure as an issue and then be educated in how to navigate themselves through what can appear a complicated process.”

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
How events can save the world

Crisis planning, sustainability, wellbeing and inclusion can cause difficulties for event organisers. So is it possible to host a truly ethical event?

Wellbeing makes 'good business sense'

Wellbeing makes 'good business sense'

Annie Metcalfe from Clear Partners says planners must adapt to the changing demands of incentive travel programmes.

Amex GBT appoints new general manager for meetings and events

Amex GBT appoints new general manager for meetings and events

Gerardo Tejado has held a number of commercial and client management roles at American Express GBT over the past 17 years.

Incentives are coming: 7 Game of Thrones-inspired destinations

Incentives are coming: 7 Game of Thrones-inspired destinations

From Croatia to Northern Ireland, the fictional land of Westeros has filming locations around the world ideal for meetings and events.

What does an HR expert look for in Best Places to Work accreditation?

What does an HR expert look for in Best Places to Work accreditation?

An independent HR consultant explains what judges are looking for in accreditation like C&IT's Best Places to Work.

Events budgets return to steady growth, Bellwether Report finds

Events budgets return to steady growth, Bellwether Report finds

UK companies increased their marketing spend in Q1 2019, in contrast to flatlining budgets at the end of last year.

'Unlocking the best parts of destinations' is key for event planners

'Unlocking the best parts of destinations' is key for event planners

Venues should use their expertise to help familiarise planners with a new destination, says panel at the C&IT Association Forum.

Case study: CoinGeekWeek conference

Case study: CoinGeekWeek conference

CoinGeek transformed The Mermaid London for its three-day conference on cryptocurrency and blockchain.

New senior account manager for Top Banana

New senior account manager for Top Banana

Natalie Benson joins from ACA Live and will work on finance, automotive and retail accounts.

Facial recognition will change the way we measure audience engagement

Facial recognition will change the way we measure audience engagement

This kind of technology could scientifically prove the value and impact of events, says Dan Broadberry from Brands at Work.

LATEST JOBS