How to succeed with your hotel programme

Text by Charlotte Korsager

Major Danish insurance company Tryg optimize their hotel programme with overwhelming success – and with the help from CWT.

 One year ago, May 2017, CWT entered a project with the Danish insurance company, Tryg. The aim was to optimize their hotel programme – and hereby securing overall compliance as well as financial savings.

Compliance and communication

With great support from CWT’s Danish online team, the CWT online tool was customised with the optimal restrictions and to secure compliance, CWT Program Messenger was also introduced enabling auto generated emails to travellers booking outside travel policy. The goal was to guide the travellers and increase advance booking; and to facilitate increased adoption of the online booking tool. The procurement manager received support on internal communication to the travellers.

Procurement Specialist at Tryg, Tine Fodor

Procurement Specialist at Tryg, Tine Fodor, explains: “We launched our new travel policy focusing on increasing advance booking from 14 to 21 days, compliance on hotels and airlines and the importance of online booking. Our internal communication department introduced the policy with a big article on our intranet, stating the importance of making use of the special deals we have with hotels, airlines and travel agencies. In addition to this, we used CWT Program Messenger as a follow-up tool, and we relaunched our internal travel site. We also have a Yammer group where we share travel information”.

The underlying goals of the hotel programme, according to Tine, are: “primarily to maintain and increase Tryg’s negotiation power through the consolidation of accommodations with a hotel chain. Secondly, we wish to secure travel safety by knowing the location of our employees in case of emergency situations.”

Concerns and implementation

But even though everything was planned and well executed, one of the major concerns with Tryg’s new hotel programme was the risk of hotel leakage if travellers started to book outside the travel program.

With online adoption rates at Tryg above 90%, results of the new hotel programme very quickly started to show, and the feedback from the travellers was very positive, “Especially the Program Messenger”, Tine says, “People take that very seriously”. And luckily, the leakage concern was put to shame.

Results

Comparing the two calendar years 2016 and 2017, bookings were up 18 %, room nights were up 26 %, and the average room rate had decreased by 3 %. And comparing Q1 of 2017, just before the implementation, and Q1 of 2018, expecting the new habits to have settled, results were equally good: Hotel bookings were up 15 %, room nights up with a whopping 36 % and the average room rate saving was stable at 3 %.

The results are extraordinarily good, and Tine highlights the benefits and learning points from the project, “Continuous communication and follow-up is essential to keep momentum and ensure cost savings”.

Satisfaction indeed

All in all, the new hotel programme has left the procurement manager at Tryg very satisfied, and the gratification was even larger when she saw a preview of the hotel booking functionalities of the company’s upcoming myCWT traveller website.

Going forward Tine says: “The focus will be on securing contractual compliance with hotels, airlines and travel agencies and to continue internal communication regarding the travel policy.”

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