Jabian Enables Favorable Negotiation Outcomes for Next Generation Technologies

The Client:

With the business spanning 100 countries and $2B+ in annual revenue, this client is a global leader in the hospitality industry with a goal to enhance the guest experience across all stages of the travel journey through the innovative use and integration of enterprise and consumer technologies. Jabian created and executed negotiation strategies across two of the client’s top five most strategic initiatives.

The Challenge:

The client was the first multi-national hospitality company to undertake the multi-year effort to replace its aging global reservation system and establish relationships with a set list of preferred hotel management solution vendors. The client required the participation of vendors that could support a diverse group of franchisees, and provide scale to deploy the new system and solutions to 5,000+ global hotels. All of this needed to be done within budget, risk, and schedule constraints.

The Strategy:

Using Jabian’s Vendor Sourcing & Management methodology, Jabian resources partnered with the client and brought a holistic, thorough approach to realize the client’s industry-leading strategy by:

  • Generating negotiation strategies and facilitating legal and commercial contract negotiations with a variety of vendors;
  • Working across multiple client stakeholder groups to ensure cross-functional compliance and alignment including: Technology, Security, Risk, Finance, Procurement, and Legal;
  • Identifying issues with contract terms critical to the client’s vision and strategy, and negotiated favorable outcomes;
  • Communicating real-time status and progress of negotiations for each vendor to key business leadership.

Negotiation Strategy

Point-of-Sale Solution Map

The Outcome:

In exceeding the client’s target objectives, Jabian:

  • Negotiated legal and commercial agreements with ten vendors;
  • Reduced the total fees of the reservation system deployment by $6.5M (35%) by clarifying scope, reducing unnecessary features, and negotiating favorable terms;
  • Played an integral role in designing the solution that mitigates risk and drives effective global deployments;
  • Identified a vendor, less familiar to the client, with the best operational expertise and scale to manage deployments;
  • Designed a future state Vendor Management Office (VMO), not originally in scope, to add rigor, expertise, and capacity to the client’s vendor management capabilities.