Wednesday 15 January 2014

GUEST BLOG: Quantifying the ROI

Optimising hotel spend and improving programme compliance continue to be key priorities for organisations, given that on average almost 40% of a company’s total travel budget goes on hotel-related expenditure (CWT T.M.I., 2009). 

Much has been written and discussed on the benefits and challenges in managing this category of spend effectively, particularly given the changes in hotel pricing models and the impact of ‘Managed Travel 2.0’.

In the end, whilst the debate rages, the fact is that the vast majority of organisations do still undertake the rate sourcing process in some fashion on a very regular (usually annual) basis and one of the loudest and – to date – most challenging questions is ‘what is the return on investment’?

To put facts and figures to the anecdotal evidence, Lanyon commissioned a report to look into this very conundrum. 

The figures show a very powerful reason for embracing the concept of Total Hospitality Spend Management:

The client’s 3-year investment of US$415k (GB£254k / EUR303k) generates a positive return in 4.2 months with a return on investment (RoI) of 448%.  

For a copy of the full report and to find out more about Lanyon's services please visit them at the Business Travel Show on stand B736. Register now at

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