GenerationY Travel Management Solutions

8/2/2019 GenerationY Travel Management Solutions

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generation

yre-think your travel strategy

Presented by Liza Hall

generationyre-think your travel strategy


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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

AGENDA


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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 corporateclients 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.


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.


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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.


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!


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THECHANGING 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


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Finance

TMC

International Res.&or Domestic Res.

24 Hour ECC

ManagementReports

Travel Alerts

Visas

Air

Lodging

Car

CBT

Card

Internal Processes

Travel Policy

KPIs / SLAs

Procurement


CURRENT STRUCTURE

Best for me or the

company I manage?

Considerations

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 costcontainment 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?

Override

commissions


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Financ

e

Procurement

ManagementConsultant

Air

Lodging

Car

CBT

TMC

International Res. &/ Domestic Res. if

required.

Visas

ManagementReports

Travel Alerts

24 Hour ECC

Card

Internal Processes

Travel Policy

KPIs / SLAs

Traveler needs

IT


PROPOSED STRUCTURE

Potential Benefits

Increased Control from a Business

perspective

Procurement will be updated and kept in theloop constantly.

Procurement can join in when and if they

deem necessary.

Suppliers Understand they are monitored by

someone in the know.

Reports can be analysed by someone in the

know. Information Distribution can be monitored.

Travel Policies and Profiles will be kept

updated.

Technological advancements will be offered

to the business when and if required.

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


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THECHANGING ROLE OF TRAVEL OF TRAVEL MANAGEMENT

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

Finance

Finance is always interested in cost containment.

Technology

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

Procurement

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


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Travel Manager

Procurement

Finance


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.



SERVICES

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

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

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

unique requirements.


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Travel Company

Interventions

Fee negotiatinsTMC Cost Challenges

Service Delivery Assesments

Service Offerings

Reporting Assessments

Consultant interviews

TMC

CAR

SUPPLY CHAIN MANAGEMENT

Card &

SBT / Supplier Tech.

Emerging Technology

Demand Management

Supplier assesments

CARCar

Rate vs Quality

Service Delivery


Accommodation &

MICESupplier negotiations

Revenue Management

Transparency

Rate negotiations

Meetings, Incentives,

Conferencing & Events

Strategic Sourcing

Airlines

Spend Analysis

Opportunity identification

Benchmark accuracies

Parnterships



ARE SAVINGS AN ISSUE?

Savings..

What is your Goal?

About The Same

As Last Year

Moderately More

Than Last Year

Significantly More

Than Last Year

Depends - How

Much Is Really

Possible?

Savings Management

Savings Management

+ Light Sourcing

+ Stronger Compliance

Savings Management

+ Heavy Sourcing

+ Policy Changes (by department?)

Strategic Review of:

Contracts, Suppliers and Policies



GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY

Organisational Alignment

Financial Alignment Supplier Alignment

Operational Alignment

Travel Strategies

Need ProperAlignment On FourDimensions


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How clear is the ownership of the travel policy?

How clear is the process for making significantchanges to the travel policy?

How effective are communications with key

stakeholders? How well is Travel organised?

How well does procurement interact withoperations?

To what degree are Travel Councils or Centers ofExcellence used successfully?

1. OrganisationalAlignment




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To what extent are the goals of the company tied tocompensation?

To what extent are travelers or their budgets charged forTravel services?

How are commissions, overrides and incentivesdistributed?

Are booking fees charged differently based on the formof booking?

Is there any form of subsidisation made to reward themost desired behavior?

How effective is the process for obtaining projectfunding, e.g. for new technology or third-party services?

2. FinancialAlignment




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How strong are your relationships with your main suppliers?

What makes it so?

How effective are your main suppliers at helping you achieveyour 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 innovationsthat improve your travel program?

3. Supplier

Alignment



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How well suited is your agencys configuration to yourservice needs?

To what extent are your agency counselors trained toimprove compliance to travel policy?

How easy is it for your agency and self-booking tool tohelp shift share to the desired suppliers?

How effective is pre-trip approval and self-booking forimproving travel policy compliance?

To what extent is your agency and card data beingconsolidated?

How effective are your analytical tools at identifyingsaving opportunities?

4. OperationalAlignment




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SERIOUSABOUT SAVINGS?... RECOMMENDATIONS.


Aligned Booking

Platform

Linked toCorporateBooking

Tool

Single form

of Payment?

UpdatedTravel

Policy

Allows for better capturing of data.

Booking process can be standardised.

Consolidated Expense =

Less time on Recons

less admin

Stricter control

Greater Control

& Savings

ExpenseReporting

System

A common electronic expense reporting tool that

can help standardise advances, re-imbursement

& aggregate expense data.



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 andtravel.

Result

Sophisticated travel technology solutions

More choice

More information

More security

More control in an increasingly mobile world.



WHAT IS THE ROI ON TECHNOLOGY INVESTMENT

Measure Cost of current process & Additional Productivity savings, if automated.

Automation & Sophistication analysis are not solutions but facilitators of improved

process.

Monitoring travel Policy Compliance is cornerstone to an effective Travel costreduction Strategy.

Automation brings consistency to reservation process & Data analysis.

Goal is to implement actions to change travel behavior and drive cost reduction.

1. Improve Travel Efficiency

2. Drive Greater Travel Cost Reduction

Brings visability at individual transaction level.

Provides greater insight into trip purpose, therefore identifying unnecessary trips.

3. Drive Greater Travel Cost Avoidance



TRADITIONALAIRBOOKING RESERVATION PROCESSS



CORPORATE BOOKING TOOL RESERVATION PROCESSS


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EXAMPLE OF A CORPORATE BOOKING TOOL




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

EXAMPLE OF A CORPORATE BOOKING TOOL
http://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.html


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ASSESMENT

EVALUATE

AND

SOURCE

IDENTIFY

AND GO

TO MARKET

IMPLEMENT

AND

TRACK

ONGOING

TRAVEL

MANAGEMENT

Complete

contracts and

delivery time lines

Research & review current

travel behaviour.

Fact Finding.

Select Preffered

with Stakeholders

approval

Implent Contracts& Monitor Vendor

Behaviours.

Provide internal

training

Monitor Supplier

Performance by means

of Business Reviews.

Determine Stakeholder

objectives

Stakeholder &

Traveler input

Consult with

Stakeholders and

Travelers.

Supply Chain

Management

Determine Concerns RFI from potential

Suppliers

Obtain SLAs and

KPIs

Monitor Travel

Policy adoptions

and adherence

Ongoing Cost Cutting and

Opportunity identication.

Asses ROI of

selected Strategies

STRATEGICASSESMENT PROCESS


ASSESMENT

EVALUATE

AND

SOURCE

IDENTIFY

AND GO

TO MARKET

IMPLEMENT

AND

TRACK

ONGOING

TRAVEL

MANAGEMENT

Complete

contracts and

delivery time lines

Research & review

current travel behaviour.

Fact Finding.

Select Preffered

with Stakeholders

approval

Implent Contracts& Monitor Vendor

Behaviours.

Provide internal

training

Monitor Supplier

Performance by means

of Business Reviews.

Determine Stakeholder

objectives

Stakeholder &

Traveler input

Consult with

Stakeholders and

Travelers.

Supply Chain

Management

Concerns

RFI from

potential

Suppliers

Obtain SLAs and

KPIs

Monitor Travel

Policy adoptions

and adherence

Ongoing Cost Cutting

and Opportunity

identication.

Asses ROI of

selected

Strategies

Business Intelligence determines the

Strategy and Tactical agenda to move forward .



QUESTIONS.

2

2

2

22

2

QUESTIONS


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

Sun Tzu

generation yre think your travel strategy

GenerationY Travel Management Solutions

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