21.73% Savings in Car Leasing
Client
An innovative and booming group of luxury resorts in unique locations in the Mediterranean.
IndustryAccommodation & Food ServicesServicesExpense ReductionCategoryCar Leasing
The Result
21.73%
Savings Rate
Total Annual Spend:
€1,756,125
Total Annual Savings:
€381,630
The price improvements led to a significant savings rate of 21.73 % in Car Leasing costs, contributing to the Client's focus to deliver positive environmental, social and economic results.
The Challenge
1
As a leader in both Luxury Accommodation and simultaneously sustainable hospitality, the Client has an ambitious ESG agenda, to continue delivering unparalleled guest experience in an eco- friendly manner. Accordingly, they provided their guests with the amenity of renting a high-end electric vehicle, a TESLA, for their transports. Due to Covid-19 lockdowns and the interconnected microchip deficit crisis, there have been major disruptions in production and distribution of electric vehicles. On top of that, inflation and inadequate government regulations have created further implications in the supply chain and generated shortages in a market with high demand for electric cars. Therefore, ensuring that the Client’s needs for luxury electric car leasing would be met, whilst securing competitive pricing, was in itself a challenge. Additionally, the fleet’s maintenance during the entire lease period should also be taken into consideration, as the authorized dealers and after sale service companies are numbered, more so, in this niche market.
The Method
2
The project scope was focused on approaching the market to evaluate the available offers for luxury electric car leasing, in the basis of price, quality of services and delivery time – a key factor. Our Expert team of Analysts, then proceeded with recurrent rounds of negotiations with the car providers to identify the most beneficiary solution regarding price but also the level of service. In particular, the analysis would integrate maintaining the fleet at an excellent level in terms of efficiency, cleanliness, autonomy and performance (especially for electric cars). Through our systematic and detailed market research and negotiating process, we managed to secure a competitive offer with the current Supplier – reducing the annual cost of the initial offer by 21.73% - that yielded savings of about 400.000 € yearly, for our Client without disrupting the current partnerships in place. Moreover, VERALLIS also advised the Client towards a public funding that the Group was eligible for.