Cost Stability
FMCG Distribution Company Managing High-Frequency Regional Travel
Background
A regional FMCG distribution company supported sales and operations teams travelling frequently across the UAE, Saudi Arabia, and Oman. Hotel stays accounted for the majority of travel spend, with roughly 180 to 220 room nights per month.
While spending levels were acceptable, month-to-month variance made forecasting difficult for the company.
The Requirement
The company wanted more predictable accommodation costs and clearer reporting, rather than aggressive cost reduction.
What Utravel Delivered
- Utravel analyzed historical hotel data and established preferred hotel arrangements in key cities
- Wholesale inventory was also used to supplement availability during peak sales periods
- Monthly summaries tracked average nightly rates by city and department, improving visibility for finance
Fadi Abu Rashed, Head of the Hotels Desk, commented, “The objective wasn’t to chase the cheapest rate every time, but to stabilize pricing so the client could plan confidently.”
Results
Within six months, the gap in hotel rates had narrowed considerably. Nightly rates became much more predictable, making it easier to stick to the budget. Overall, accommodation spend dropped by around 5–6%, thanks mainly to this newfound consistency.
Client Impact
Operational teams benefited from reliable hotel options, and finance gained confidence in forecasting. The client valued the reduction in volatility more than headline savings.