Best Practices in Travel Management November 14 2012 Topics Background Historical look at industry travel management Best practice examples and trends Q amp A ID: 401246
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Slide1
R.D. Brown Company
Best Practices
in
Travel Management
November 14, 2012Slide2
Topics
Background
Historical look at industry / travel management
Best practice examples and trends
Q & A
Slide3
Presenter
Ralph Brown, President R.D. Brown Company
Travel management consulting services since 1983
Specializing in travel procurement and benchmarking
More than 400 corporate clients in all sized travel-spend ranges
Currently working with:
McDonald’s, ITW, Lam Research, Blank Rome, GSASlide4
R.D. Brown Company Tools
“Best Practices in Travel Management” – benchmarking
“Diagnostics” - European travel program benchmarking
Service Cost Index – reflects value of the TMC contract
OnTAP – Online Travel Agency ProcurementSlide5
Travel Program Components
Strategy
Policy
TMC Data Management
Sourcing Payment &
Meetings Expense Reporting Slide6
Best Practices in Travel Management
Indicators of a Strong Travel Program
Designated responsibility for travel within the company
Single TMC approach with company-wide utilization
Structured approval process for
business travel
Implementation of online booking tool, high adoption
Strong travel policy direction, senior management supportStructured approach for travel supplier sourcing
Slide7
Best Practices in Travel Management
Indicators of a Well-Managed Program
High
utilization of preferred air, hotel, and car
suppliers
Structured approach for meetings management
Consolidated data for sourcing and policy monitoring
Corporate card used for travel payment, no personal cardsElectronic T&E expense system
Slide8
Best Practices in Travel Management
Indicators of a Weak Program
Inconsistent support from management
Minimal objectives for travel program
Low adoption of online booking
Multiple TMCs with varied fees / services
Outdated travel policies / procedures
Inconsistent support of preferred supplier programs
Lack of travel data and utilization of MIS
Slide9
Best Practice Trends
Programs - $1 million to $10 million air
2007
2012
Designated travel manager / objectives 67% 81%
One TMC for NA 62% 79%Global travel program 26% 38% High online adoption, over 75% 28% 44%Structured pre-trip approval process 47% 76%Risk management tools implemented 22% 39%
Slide10
Best Practice Trends
Programs - $1 million to $10 million air
2007
2012
Up-to-date, strong policy 37% 58%
Structured hotel program 51% 69%Monitoring of program, web-based MIS 59% 82%Corporate card for payment, over 75% 47% 64%Electronic T&E system, 1-5 day process 25% 39%
Slide11
Best Practices in Travel Management
How Suppliers Can Best Support Clients
Stay attentive to service issues / problem resolution
Provide data to support monitoring of utilization
Communicate opportunities for savings
Think “out-of-the box” for enhancing traveler experience
Demonstrate value for cost
Stay proactive
Slide12
R.D. Brown Company
QuestionsSlide13
Window for “Best Practice” Changes
Focus on 2013
1.
Review processes – benchmark current program
Consolidation of agency services – global approach
Service configuration options
Maximize online booking, minimize service fees
Review of meetings management strategies
2.
Change traveler buying patterns
Greater drive to preferred suppliers
Encouraging efficient trips / more effective travel
Stronger policy support and monitoring
Better support from senior managementSlide14
Window for “Best Practice” Changes
Focus on 2013
3.
Tightening of policies
Class of service for international travel
Mandate for online booking
More effective travel for meetings
Revising of travel entitlements / standard of travel
4.
Stronger negotiating position
Hotels trying to raise rates but still hungry for business
Airlines looking for loyal customers / providing discounts
Car, limo, and other suppliers want new businessSlide15
Best Practices in Travel Management
Enhancing the Program – Implementing Change
Establish defined travel manager responsibility
Create management objectives for travel program
Build awareness and support of senior management
Evaluate process change alternatives
- TMC optimization - Maximize online booking
Revise / strengthen internal policies / procedures
Monitor use of preferred supplier programs
Establish procedures to review MIS monthly