An automotive leader that manufactures tires for vehicles as varied as airplanes, automobiles, and space shuttles, faced the challenge of efficiently managing business travel across its worldwide entities. A couple of years ago, they turned to Areka to develop its hotel strategy and create the company’s first global hotel program. Since its successful launch, the Areka team has introduced program innovations and creative strategies to anticipate dramatic market swings and the company’s business dynamics.

Challenge

From the start it has been a challenge to realize the benefits of a globally managed program, while responding to the needs of the business units and their business travelers. The inclusion of new entities accentuated gaps between traveler needs and program solutions, exemplified by the absence of top hotels. Fragmented contracts management due to a lack of globalization further complicated the control over travel and expense, and weakened negotiating power.

Areka's work was therefore structured around these objectives :

• Improve the traveler experience by consolidating the needs of all entities to ensure the hotel program reflects the reality of travelers' needs and effectively covers preferred destinations.
• Optimize costs by creating a customized hotel program and strengthening negotiating power with hotel partners.
• Improve traveler safety.

Response

Our systematic approach began with meticulous data collection and consolidation to analyze the client's specific needs. We developed a targeted strategy, establishing partnerships with key hotel chains globally, ensuring diverse offers and preferential rates. After defining the strategy, we implemented an optimized RFP process for soliciting, receiving, and analyzing hotel offers.

A key objective was to create a program covering all of our client's needs while strategically limiting the number of hotels. This aimed to streamline program management and facilitate negotiations with each participating establishment.

Throughout the process, we also provided the customer with the opportunity to introduce a new criterion for evaluating each hotel's offer, by analyzing the sustainability performance of each property with a list of closed questions that led to a single score.

Unique approach

1. We ensured the integration of all customer needs by reconciling TMC and hotel chain data.
2. We balanced the integration of local needs with the global simplification objectives.
3. We increased the company's negotiating power by using the consolidated volume of all entities as leverage.
4. We improved the sustainability performance thanks to a precise scoring of each hotel based on concrete specific modernity criteria.

Results & key metrics

• More than 350 hotels invited to participate to the RFP.
• Creation of a hotel program with over 170 hotels in 24 different countries.
• 5M€ of savings generated by the RFP.