Cost Containment Presentation

Copyright © 2008 CWT 1

Travel Management Program Optimization and Cost Containment

Molly McCue Director Business Development, West Region

Carlson Wagonlit Travel


Association of Corporate Travel Executives (ACTE)

Travel Spend Survey

71% plan to spend less on travel in 2009

79% see cost-cutting as their top business travel concern

61% said they had approached vendors to renegotiate contracts

What the Market is Saying….

Copyright © 2008 CWT 3Copyright © 2009 CWT 3

Improving traveler compliance

Optimizing hotel spend

Driving air and ground transportation savings

Optimizing simple bookings (SBT)

Developing key performance indicators

Tackling meetings and events

Further consolidating the travel program

Addressing safety and security needs

66%

59%

59%

56%

46%

39%

36%

20%

Tough times present an opportunity to demonstrate the value of an effectively managed travel program

Source: CWT Travel Management Institute global survey of 178 travel managers

October 2008

Which of the following areas will become a higher priority in your 2009 travel program, compared to 2008?


Opportunities to optimize and drive savings abound in all areas of travel management

Program

Optimization

Traveler & Transaction

Services

Traveler & Transaction Services

Utilize an online booking tool and travel counselors

Non-complex trips should be booked online

Costs less

Visual guilt when all fares are visible

Use travel counselors for complex bookings,

and executive/VIP services

Both methods can enforce travel policy

Counselor scripts

Messaging on booking tool

Reporting on all reservations, whether

made online or offline



Program Optimization: Air, Hotel & Ground

Collect spend data & examine contracts

Identify sourcing and

traveler behavior saving

opportunities

Build an effective sourcing program and adjust travel

policy

Find the right balance between negotiated fares

and available options while

supporting compliance

Evaluate strategy &

goals regularly

3

4

5

1

2


Source: CWT Travel Management Institute

Program Optimization: Compliance

Companies can save 20% of T&E spend by:

Improving their travel policy

Increasing traveler compliance


Program Optimization: Performance Measurement

Establish business goals & identify

performance drivers

Regularly monitor metrics against

program goals, peers & market trends

Communicate results through

dashboards & take corrective actions

Define tailored metrics and action

plan

12

3

4


Meetings and Events

Accounts for 30-35% of overall travel spend, yet only about 50% of companies are managing

Collecting data on existing spend is a challenge

Survey internally, especially administrative personnel

Analyze credit card data

Proving ROI never more critical

Today, perception is reality

Destination analysis

Measurement of results

On Line Booking vs. Travel Management CompanyIn tough times, travelers may be tempted to book outside the program if they find rates appearing to be cheaper online

Bad idea for many reasons:

Loss of volume data

Puts company at risk of not meeting market share agreements (air)

Lose negotiating leverage to maintain/increase discounts with all suppliers

No quality assurance for suppliers used

Hotel locations, etc.

No ability to track travelers in an emergency

Critical liability for companies

Terms may be restrictive and/or result in unforeseen fees



Program Optimization:Key Cost Savings Initiatives

Optimize design of companytravel policy

Increase awareness through communication to travelers

Enforce booking processes& tools that encourage compliance

Monitor compliancethrough reports to management

Build an effective sourcing program with key suppliers – evaluate regularly

Engage senior management


Thank you.

Cost Containment Presentation

Travel

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