Client Profiles - Hotel Chain
Telwares Finessed The Renegotiation Of A Telecom Contract For One Of The Largest Global Hotel Companies.CHALLENGE:
A global hotel company with a footprint in 80 countries had telecom contracts in the midst of 36 month terms with 90% exclusivity and escalating annual commitments. The company's gross usage charges foretold a potential shortfall. Meanwhile, the company had concerns about service quality, felt its rates were no longer competitive, and had not received any significant pricing relief.
SOLUTION:
Despite the existing contract situation, Telwares leveraged the contract renegotiations and prepared an RFP in the event that the desired response from the carrier was not achieved.
Key Telwares strategy recommendations:
• Position current problems to create negotiation leverage and highlight the marquee value of this brand name client to the carrier.
• Push for renegotiating the annual commitment based on the occurrence of a business downturn event.
• Focus the renegotiation on key rate elements and essential protective clauses.
• Support specific chargeback and call accounting requirements.
RESULTS:
A successfully renegotiated contract with the company's incumbent carrier yielded significant annual cost savings.
Telwares analysts:
• Reduced the company's annual telecom spend by more than $2 million.
• Eliminated a large potential shortfall penalty that the company was liable for.
• Added enhanced terms and conditions that enable the company to respond to market changes.
• Instigated the development of a stewardship program which had the commitment and participation of both the carrier's and the company's executive teams.
Read how Telwares has helped these world class companies achieve success:
SoftwareBankInsuranceUtilityHealth CareManufacturingHotel ChainOutsourcing
SoftwareBankInsuranceUtilityHealth CareManufacturingHotel ChainOutsourcing