Getting with the Programme

Managing your Hotel Expenditure Effectively


20 September 2016
Before the end of September we expect to hear from PWC regarding their updated forecast about the UK hotel industry for the remainder of 2016, and into 2017 and beyond. Their latest update back in March suggested that average hotel rates in the provinces would grow at around 3%, compared to London which was forecast at 1%.
 
While these expectations of increased cost are good to know, effectively managing your hotel expenditure can deliver to your overall objectives without needing to budget for these types of increases, and instead reduce your costs.
 
There are five key questions you need to have asked before you consider any prices for the next 12 months:
 
1. What drives the company’s requirement for hotels, and is this likely to change in the year ahead?

2. Has the company defined the standard of the hotels that should be booked and how do your travellers feel about them?

3. Can you leverage added value into your hotel rates based upon the extras travellers are permitted to bill to expenses?

4. Do you regularly have meetings in the area? Can you schedule meetings at the end of the week or switch online to reduce cost?

5. How much can you influence traveller behaviour should you have the opportunity to consolidate your bookings into fewer hotels?
 
At PHR we assist clients with the strategic management of their hotel, meetings and travel expenditure, leveraging your costs to optimise your savings while securing the support of your travellers.
 
If you would like to discuss your requirements and find out more, please do not hesitate to get in touch.
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