Oilfieldlodging.com Slashes Travel Costs for Global Oilfield Service Company Saving $8,000,000
By using the services of OilfieldLodging.com, a global oilfield service company saved over $8 million from 2013 to the 2014 fiscal year. To arrive at this conclusion, an audit of lodging spending, decision making and business processes was performed. This audit revealed that money was saved in various areas, including facilities, man camps, and hotels. The lodging company was also able to reduce costs for the client with tax management, no stay no pay agreements, and eliminating long term contracts.
In the past, oil companies would coordinate with local establishments to find lodging and dining options. This often resulted in price gouging and reduced profits. By contracting lodging and logistical services, oil companies can utilize high-quality options while saving money. The global oilfield service company that saved millions of dollars in 2014 is a prime example of the effectiveness of relying on contractors for lodging and logistics. In most cases, relying on a lodging contractor can increase the profit margins of oilfield service companies. On average, the services provided by the contractor can save oilfield service companies about 25 percent of their initial costs. Many oil companies in the United States have reported that using this contractor for lodging and logistical services has saved them millions of dollars on a quarterly basis. Savings are larger as expected by scale.
OilfieldLodging.com offers all their clients both small and large, independent and public, the combined buying power of the largest oilfield service companies in the world. Combine that savings with solid tax management, superior nightly auditing, custom invoicing, and quarterly regional price evaluations and all companies will see a huge savings to their bottom line regarding travel management and crew logistics.