The Challenge

Key Travel collaborated with a leading University to identify and implement a bespoke hotel programme. The University booked roughly half of their 1,100 annual London hotel nights off-contract (i.e., not transacted through an approved contract with a Travel Management Company and instead through other channels). Key Travel identified this by linking Finance, Faculties and Procurement analyses with general ledger and credit card spend.

The University had negotiated rates in place with three London hotels; but expectations and thresholds set by the hotels to obtain improved rates were not being met.  Duty of Care visibility was not consistently available, as travellers were booking hotels outside of their Travel Management Company (TMC), resulting in there being no way to track staff in the event of an emergency.

The Solution

Key Travel proposed to refocus the University’s hotel strategy and implement a London-wide hotel programme. Three peak demand locations were identified, and three more hotels were recommended to fulfil demand requirements, without adversely affecting market share with current contracted hotels.

Key Travel negotiated rates and benefits with these hotels, including booking priority, Wi-Fi, gym use, breakfast, and 4pm cancellation on day of arrival.  Rates were independently benchmarked against the latest PwC UK hotel forecast.

Key Travels Managed Hotel Programme

Key Travel’s managed hotel programme focused on service delivery, flexibility, cost saving and process enhancements to achieve the following:

    • Increased hotel choice in proximity to campuses
  • Improved payment and reconciliation processes
  • Value for money
  • Competitive room rates
  • Increased on-contract spend
  • Delivering a Service Level Agreement supported by KPIs and Management Information

Implementation included communications to all key stakeholders with information available on the University Intranet and Key Travel booking site.

The Results

Key Travel enhanced the University’s hotel rates and benefits, while simplifying internal processes and improving on-contract spend. Hotel programme compliance increased by 10%, with a 7% reduction in hotel spend at the contracted properties. This was achieved by staff booking rooms via purchase order using Key Travel’s online booking solution. This simplified process also helped coordinate all preferred suppliers and “best rates of the day” to support the University’s travel policy.