generation y

re-think your travel strategy

Presented by Liza Hall

generation y
re-think your travel strategy

AGENDA

WHAT IS TRAVEL MANAGEMENT CONSULTING?

THE CHANGING ROLE OF TRAVEL MANAGEMENT

SERVICES & SUPPLY CHAIN MANAGEMENT

ARE SAVINGS A GOAL?

GENERATION YS 4 DIMENSIONS TO TRAVEL STRATEGY APPROACH

SERIOUS ABOUT SAVINGS? RECOMMENDATIONS

STRATEGIC ASSESMENT PROCESS

generationy
re-think your travel strategy

WHAT IS TRAVEL MANAGEMENT CONSULTING?

Not always recognized as a difference-maker in the boardroom, progressive companies are becoming more aware that their Business Travel must function as a tightly structured operation to achieve their goals. Some Companies Employ Travel Managers, and some would rather not add additional resources.

Yet, what every organisation still wants is ..

To minimise cost. Maximise service to travellers. Streamlined efficient internal processes.

This partnership may be the answer to your dilemma!

Acting as an extension of your Procurement division and your company representative, Generation Y will negotiate and manage all your contracts, while saving you the expense and headache or of hiring a full-time employee, or relying on a TMC that may or may not have your Companys best interests at heart.

Benefits Depending on size, outsourcing the TM function may allow the sharing of a single head across multiple corporate clients reducing the expense of a head count. Travel Industry expertise is shifted to an external subject matter expert. Outsourcing should assist in cost reduction of TM services. Services may utilised full time, part time or interim.

generationy
re-think your travel strategy

WHAT IS TRAVEL MANAGEMENT CONSULTING

Digging deep to understand your corporate culture and then assist you to align your travel program precisely to your organisations key strategic goals!
Business Process Design.

Standardise operations & procedures .

Creation of the Company Travel Policy - Implement Travel Policy with client and suppliers.

Establish or Improve business Relationships with key Suppliers Air, Lodging, Car , TMC, Card.

Up-skill Procurement & Administrators to enhance their knowledge and efficiency.

Review Suppliers Current Contracts, Renew and Renegotiate Contracts.

Analyse Management reports & report back to Finance.

generationy
re-think your travel strategy

THE CHANGING ROLE OF TRAVEL OF TRAVEL MANAGEMENT

The evolution of Travel Management, mirrors advancements in technology and changes in travel distribution. In the past 50 years, the corporate travel industry has gone from being a highly regulated industry (in the 1960s) to the deregulated competitive sourcing environment it is today. The travel management function came into its own in the 1990s as the combination of technology and the willingness of airlines to negotiate corporate discounts led to more sophisticated travel management techniques.

1960s

1970s

1980s

1990s

2000s

generationy
re-think your travel strategy

CURRENT STRUCTURE
International Res.& or Domestic Res. 24 Hour ECC Management Reports

Considerations

Best for me or the company I manage?

Travel Alerts Visas

TMC

Air Lodging Car CBT

Finance

Override commissions

Procurement Card

Internal Processes Travel Policy

KPIs / SLAs

What is the level of control from a business and expense perspective? Is service optimal? Management Reports comprehensive? Information Distribution to various departments and divisions consistent? Are Travel Policies, Profiles up to date? New Technology offered to assist in cost containment eg. CBT? Are the preferred suppliers being adhered too and the relationships nurtured? Are Best practice and possible fare options being offered and utilised as the norm? Are you getting the best for your spend? Has a good relationship been established? Are departments informed of potential travel risks, news or promotions daily, weekly? Is Travel Spend Managed adequately? How often is information distributed?

generationy
re-think your travel strategy

PROPOSED STRUCTURE
Air Lodging Car CBT Procurement

Potential Benefits Increased Control from a Business perspective Procurement will be updated and kept in the loop constantly. International Res. & / Domestic Res. if Procurement can join in when and if they required. deem necessary. Suppliers Understand they are monitored by someone in the know. Visas Reports can be analysed by someone in the know. Management Reports Information Distribution can be monitored. Travel Policies and Profiles will be kept updated. Travel Alerts Technological advancements will be offered to the business when and if required. 24 Hour ECC Supplier relationships nurtured Monitoring of Best practice best fare options? Improved service levels. Improved information distribution ie potential travel risks, news or promotions Reduced costs as a result of tighter controls. Happier Travelers

Finance

TMC Management Consultant Card IT Internal Processes Travel Policy KPIs / SLAs Traveler needs

generationy
re-think your travel strategy

THE CHANGING ROLE OF TRAVEL OF TRAVEL MANAGEMENT

Procurement, Finance and IT are becoming more influential in Travel Management.

Procurement
The more travel is spoken about as a commodity, the more involvement from Procurement.

Technology
Technology is now playing a role embracing the Business Intelligence to assist procurement in identifying opportunities of cost containment

Finance
Finance is always interested in cost containment.

generationy
re-think your travel strategy

THE CHANGING ROLE OF TRAVEL MANANGEMENT

Travel Management within corporations works best as a multidisciplinary team.
From a CFO perspective, expense Control is imperative to improve company performance.

Procurement often views Travel as a Commodity, an indirect expense that perhaps cannot be controlled. (Air, Car, Hotel)
The Result Shift within the company as Travel Management is now viewed as a critical expense to manage. Management Consultant works hand in hand with Procurement and Finance. Finance has direct input into Policy Creation Metrics to track performance of Suppliers are introduced - KPIs & SLAs. Working alongside Finance, allow distribution of compliance monitoring to individual divisions, therefore impacting on travel planning and booking behaviour.

Finance

Procurement

Travel Manager

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re-think your travel strategy

SERVICES
Services may utilised as needed, and either full time, part time or ad hoc depending on your company's unique requirements.

STRATEGIC SERVICES Customised Procurement Strategy

Travel Assessments Travel Policy development & assistance Process Flow Strategic sourcing - Car, Air, Hotel, Card Payment Option advice Corporate Booking Tool assistance Implementation assistance TMC Cost Challenges Supplier negotiations Training Administrators / Travelers Service Level Agreements EIA Supplier Assistance

TRAVEL MANAGEMENT SUPPORT

Supply Chain Management Travel Management Report analysis TMC Reviews Benchmarking reviews Supplier Relationship maintenance Travel Policy updates Travel Industry updates Vendor re-negotiations TMC Management Market place technology trend advice MICE sourcing and assistance Training Administrators / Travelers

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re-think your travel strategy

SUPPLY CHAIN MANAGEMENT

Card & SBT / Supplier Tech.
Emerging Technology Demand Management Supplier assesments

Airlines
Spend Analysis Opportunity identification Benchmark accuracies Parnterships

Travel Company Interventions

Fee negotiatins TMC Cost Challenges Service Delivery Assesments Service Offerings Reporting Assessments Consultant interviews

Accommodation & MICE

Supplier negotiations Revenue Management Transparency Rate negotiations Meetings, Incentives, Conferencing & Events Strategic Sourcing

CAR
Car Rate vs Quality Service Delivery

TMC

CAR

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re-think your travel strategy

ARE SAVINGS AN ISSUE?

About The Same As Last Year

Savings Management

Savings Management
Moderately More Than Last Year + Light Sourcing + Stronger Compliance

Savings.. What is your Goal?

Significantly More Than Last Year

Savings Management + Heavy Sourcing + Policy Changes (by department?)

Depends - How Much Is Really Possible?

Strategic Review of: Contracts, Suppliers and Policies

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re-think your travel strategy

GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY

Travel Strategies Need Proper Alignment On Four Dimensions

Organisational Alignment Financial Alignment Supplier Alignment Operational Alignment

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re-think your travel strategy

GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY

1. Organisational Alignment

How clear is the ownership of the travel policy? How clear is the process for making significant changes to the travel policy? How effective are communications with key stakeholders? How well is Travel organised? How well does procurement interact with operations? To what degree are Travel Councils or Centers of Excellence used successfully?

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re-think your travel strategy

GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY

2. Financial Alignment

To what extent are the goals of the company tied to compensation? To what extent are travelers or their budgets charged for Travel services? How are commissions, overrides and incentives distributed? Are booking fees charged differently based on the form of booking? Is there any form of subsidisation made to reward the most desired behavior? How effective is the process for obtaining project funding, e.g. for new technology or third-party services?

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re-think your travel strategy

GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY

3. Supplier Alignment

How strong are your relationships with your main suppliers? What makes it so? How effective are your main suppliers at helping you achieve your goals? How well briefed are they on your goals? To what extent do you have practical goals for your key suppliers? How effective is the feedback and correction process? How successful are your suppliers at bringing you innovations that improve your travel program?

GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY

4. Operational Alignment

How well suited is your agencys configuration to your service needs? To what extent are your agency counselors trained to improve compliance to travel policy? How easy is it for your agency and self-booking tool to help shift share to the desired suppliers? How effective is pre-trip approval and self-booking for improving travel policy compliance? To what extent is your agency and card data being consolidated? How effective are your analytical tools at identifying saving opportunities?

generationy
re-think your travel strategy

SERIOUS ABOUT SAVINGS?... RECOMMENDATIONS.

Aligned Booking Platform

Allows for better capturing of data. Booking process can be standardised.

Updated Travel Policy

Linked to Greater Control Corporate Booking & Savings Tool

Expense Reporting System

Consolidated Expense =

Single form of Payment?

Less time on Recons

less admin Stricter control

A common electronic expense reporting tool that can help standardise advances, re-imbursement & aggregate expense data.

generationy
re-think your travel strategy

WHAT IS A CORPORATE SELF BOOKING TOOL

Corporate Booking Tools are becoming mainstream to automate process and enforce best practice. A CBT is a comprehensive travel management solution, that is able to serve every aspect of corporations travel needs through a single entry point!

The internet has changed the rules of doing business, and it has transformed the way we shop, communicate and travel.
Result Sophisticated travel technology solutions More choice More information More security More control in an increasingly mobile world.

generationy
re-think your travel strategy

WHAT IS THE ROI ON TECHNOLOGY INVESTMENT

1. Improve Travel Efficiency

Measure Cost of current process & Additional Productivity savings, if automated. Automation & Sophistication analysis are not solutions but facilitators of improved process.

2. Drive Greater Travel Cost Reduction

Monitoring travel Policy Compliance is cornerstone to an effective Travel cost reduction Strategy. Automation brings consistency to reservation process & Data analysis. Goal is to implement actions to change travel behavior and drive cost reduction.

3. Drive Greater Travel Cost Avoidance

Brings visability at individual transaction level. Provides greater insight into trip purpose, therefore identifying unnecessary trips.

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re-think your travel strategy

TRADITIONAL AIR BOOKING RESERVATION PROCESSS

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re-think your travel strategy

CORPORATE BOOKING TOOL RESERVATION PROCESSS

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re-think your travel strategy

EXAMPLE OF A CORPORATE BOOKING TOOL

generationy
re-think your travel strategy

EXAMPLE OF A CORPORATE BOOKING TOOL

For 5 minute demonstration : http://www.amadeus.com/media/corporations/AeTM/index.html

generationy
re-think your travel strategy

STRATEGIC ASSESMENT PROCESS Business Intelligence determines the Strategy and Tactical agenda to move forward .

ASSESMENT

EVALUATE AND SOURCE

IDENTIFY AND GO TO MARKET

Select Preffered Select Preffered with Stakeholders with Stakeholders approval approval

IMPLEMENT AND TRACK

Implent Contracts & Monitor Vendor Behaviours. Provide internal training Consult with Consult with Stakeholders and Stakeholders and Travelers. Travelers. Monitor Travel Monitor Travel Policy adoptions Policy adoptions and adherence and adherence

ONGOING TRAVEL MANAGEMENT Monitor Supplier Monitor Supplier Performance by means Performance by means of Business Reviews. of Business Reviews.

Research & review current Research & review travel behaviour. current travel behaviour. Fact Finding. Fact Finding.

Stakeholder & Stakeholder & Traveler input Traveler input

Determine Stakeholder Determine Stakeholder objectives objectives

Asses ROI of ROI of Asses selected selected Strategies Strategies RFI from

Complete contracts and delivery time lines

Obtain Obtain SLAs and and KPIs KPIs

Supply Chain Supply Chain Management Management

Determine Concerns Concerns

RFI from potential potential Suppliers Suppliers

OngoingOpportunityand and Cost Cutting Opportunity identication. identication.

Ongoing Cost Cutting

generation y
re-think your travel strategy

QUESTIONS

2 2 2
QUESTIONS
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2
2

generation y
re-think your travel strategy

Strategy without tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat.
Sun Tzu

generation y
re-think your travel strategy