Case Study: a global medical firm achieves significant hotel program savings with BCD Travel

a global medical firm cuts hotel spend by 4.9% with BCD Travel

The customer, a global medical firm, faced high hotel costs due to their use of traditional static negotiated rates and rate caps. While their rate caps were competitive in primary markets, the caps in their secondary markets were set much higher than the market rate, which served as an anchor and drove up their average booked rates. They worked with BCD Travel to address this challenge.

BCD Travel implemented a new strategy based on behavioral economics, replacing rate caps with "targets" set to at least 10% below standard public rates. This solution eliminated the need for sourcing in secondary markets, reducing the program size by 55%. BCD Travel's approach generated significant savings, including 4.9% year-over-year in new non-program markets and 2% in top-tier program markets.