Specialist knowledge reduces hotel costs with Expro




Oil and Gas

Zara Higgins

General Manager, Scotland

e: zara.higgins@atpi.com

The Background

Expro is an international oil and gas services company, specialising in well flow management, headquartered in the UK. It provides products and services that measure, improve, control and process flow from high-value oil and gas wells – both for exploration and in mature field production.

With over 5,400 employees across 50 countries, Expro requires over 10,000 hotel room nights globally each year. More than half of that demand is in the Aberdeen area, where the company has a regional HQ and five other offices. Typically the rooms are for the offshore workers and management involved in training and meetings

The Challenge

The large number of energy companies with operations in the North Sea area means there is fierce competition for hotel rooms in and around Aberdeen, especially mid-week.

Although Expro has a substantial hotel programme with a number of last room availability (LRA) negotiated rates, the high demand means these rates are not always available once hotels sell out of standard rooms.

When making reservations online, the Expro bookers were securing hotel rates as they became available, so the lowest rate shown could be a nonstandard room costing over £200 per night.

What’s more, bookers were still under pressure from some travellers to book their favoured hotel.

The Solution

By allocating a genuine hotel sector expert to manage the Expro account, ATPI Energy Travel has been able to drive further savings for the client, bringing average room rates down and continually monitoring hotel activity to reduce noncompliance with travel policy.

Since the end of February 2014, the Account Manager has requested daily management information (MI) reports that include every hotel booking made by Expro for the previous day. The reports clearly show whether the transaction complies with company travel policy and
whether the hotel has honoured the LRA rate.

Using this information, the ATPI Marine & Energy Account Manager has been able to investigate all bookings made outside policy. Where LRA rates cannot be enforced because standard rooms aren’t available, the Account Manager suggests booking with a different hotel offering better rates. For example, ATPI Marine & Energy has a successful partnership with a particular hotel outside the city centre, where transport is included in the deal.

Before any changes are made to a booking, Expro’s Indirect Supply Chain Manager is alerted to the potential savings and therefore is able to support in regards to ensuring bookers comply. The relationship between the Expro Indirect Supply Chain Manager and the ATPI Marine & Energy Account Manager has been key to the success of managing the hotel programme and driving costs down.

The Result

During the first three months, ATPI Marine & Energy’s proactive account management created a saving of  £14,395 for Expro. Without the comprehensive MI reports and expert knowledge of the ATPI Marine & Energy Account Manager, opportunities for savings may not have been recognised.

The support of the Indirect Supply Chain Manager internally has meant bookers are conforming to travel policy by selecting the lowest rates available to them from Expro’s preferred hotel suppliers. Travellers who have favourite hotels, are offered similar but alternative accommodation by bookers and are also shown the savings made which helps drive compliance.

Additionally, ATPI Marine & Energy and Expro’s preferred hotels have been working more closely together to ensure availability of negotiated rates, and make these visible for bookers to select online.

Learn more about ATPI’s sector-specific offering for the energy industry