CASE STUDY: Overcoming disruption in the corporate travel market

The brand added value by representing a network of hotels and selling to the corporate world, but the rise of online direct sales was reducing their profitability. They needed a stronger value proposition to survive in a rapidly changing market.

The hotel brand had significant investment in highly qualified sales people selling to corporate travel but rising consumer power had undermined this. Individuals within corporates, still complying with travel policies, were able to make different choices and book through different channels, damaging the brand position.

Action: PACE played an advisory role to the board and owners to help them navigate the repositioning of the company for faster growth and long term sustainability, and ultimately for sale.

Over nine months PACE advised the company how to improve current performance and on new lines of business to invest in in order to create stronger growth in future.

Insight: PACE bought deep understanding of how the most successful hotels perform online and what ‘best in class’ looks like. The consultants helped the hotel brand to identify areas of weakness and opportunity. The PACE team conducted strategic analysis of the existing position against the competition, along with external changes in the market.

Result: PACE helped the hotel brand refine the way they sold to corporations so that their investment in people and resources was more effective. They helped hotel brand identify ways to build on their strengths to develop a distinctive customer promise to drive higher rates and better performance. PACE advised on expanding ecommerce capabilities to help the network of hotels sell more successfully online. This improved operational performance for hotels and gave them a growth story for the future, driving up the multiple value of the company.

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