ancon09 brown
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Society of Government Travel Society of Government Travel ProfessionalsProfessionals
Best Practices in Travel Best Practices in Travel ManagementManagement
February 4, 2009February 4, 2009
TopicsTopics
BackgroundBackground
Historical look at industry / travel management Historical look at industry / travel management Corporate vs. government practicesCorporate vs. government practices
Best practices of travel management Best practices of travel management Strengths / weaknesses of government travel Strengths / weaknesses of government travel
managementmanagement Need for changeNeed for change
PresenterPresenter Ralph Brown, President R.D. Brown CompanyRalph Brown, President R.D. Brown Company
Travel management consulting services since 1983Travel management consulting services since 1983
Specializing in travel program benchmarking / Specializing in travel program benchmarking /
procurementprocurement
More than 400 clients in all sized travel spend rangesMore than 400 clients in all sized travel spend ranges
Projects include: GSA, DOE, DOI, DOL, DOT, DOA, NSAProjects include: GSA, DOE, DOI, DOL, DOT, DOA, NSA
Currently working with GSA MIS solutionCurrently working with GSA MIS solution
Proprietary and Confidential
R.D. Brown Company ToolsR.D. Brown Company Tools
““Best Practices in Travel Management” – Best Practices in Travel Management” – benchmarking benchmarking
““Diagnostics” - European travel program Diagnostics” - European travel program
benchmarkingbenchmarking
Service Cost Index – reflects value of the TMC Service Cost Index – reflects value of the TMC
contractcontract
Mx4, Meetings Management Maturity MeasurementMx4, Meetings Management Maturity Measurement
Evolution of Travel ManagementEvolution of Travel Management Manager Focus• Unstructured Travel Management 1985 > rebating Travel Consolidation
• Telephone & Paper Process 1990 > air deals possible Reduction in Travel
• Technology Growth 1995 > commission changes Strategic Sourcing
• Internet Technology 2000 > online sites GDS Content Questions
• Electronic Processing online tools, controls
Process Cost Control
Proprietary and Confidential
Current State of Travel IndustryCurrent State of Travel Industry
Poor Economic EnvironmentPoor Economic Environment
1.1. Reduced Business TravelReduced Business Travel
a.a. Companies implementing new cost controlsCompanies implementing new cost controls
b.b. Conservative approach on travelConservative approach on travel
c.c. Concerns about corporate profitability for 2009Concerns about corporate profitability for 2009
2.2. Airline DifficultiesAirline Difficulties
a.a. High number of delays and poor service performance High number of delays and poor service performance
b.b. Understaffing of operations, maintenance issues, and passenger Understaffing of operations, maintenance issues, and passenger servicesservices
c.c. Consolidation of airlines (DL + NW)Consolidation of airlines (DL + NW)
d.d. Reduction in capacity Reduction in capacity
Proprietary and Confidential
Current State of Travel IndustryCurrent State of Travel Industry
Window for Savings OpportunitiesWindow for Savings Opportunities
1.1. Tightening of policiesTightening of policiesa.a. Changing class of service for international travelChanging class of service for international travelb.b. Mandate for online bookingMandate for online bookingc.c. Less travel for meetingsLess travel for meetingsd.d. Revising of travel entitlements / standard of travelRevising of travel entitlements / standard of travel
2.2. Stronger negotiating positionStronger negotiating positiona.a. Hotels hungry for business Hotels hungry for business b.b. Airlines looking for loyal customers / providing discounts Airlines looking for loyal customers / providing discounts c.c. Car, limo, and other suppliers in need of new businessCar, limo, and other suppliers in need of new business
Proprietary and Confidential
Current State of Travel IndustryCurrent State of Travel Industry
Window for Savings OpportunitiesWindow for Savings Opportunities
3.3. Reviewing processesReviewing processesa.a. Consolidation of agency services – global approachConsolidation of agency services – global approachb.b. Service configuration changesService configuration changesc.c. Maximize online booking, minimize service feesMaximize online booking, minimize service feesd.d. Review of meetings management strategies Review of meetings management strategies
4.4. Changing traveler buying patternsChanging traveler buying patternsa.a. Greater drive to preferred suppliersGreater drive to preferred suppliersb.b. Encouraging shorter trips / more effective travel Encouraging shorter trips / more effective travel c.c. Stronger policy support and monitoring Stronger policy support and monitoring d.d. Better support from senior managementBetter support from senior management
Proprietary and Confidential
Benchmarking Travel ProgramsBenchmarking Travel Programs
StrategyStrategy Policy Policy
TMCTMC MIS MIS
SourcingSourcing Payment Payment
Expense Expense ReportingReporting
Proprietary and Confidential
Travel ManagementTravel Management
Corporate ComponentsCorporate Components - - Structure and StrategyStructure and Strategy - TMC Relationship- TMC Relationship - Travel Policy- Travel Policy - Strategic Sourcing- Strategic Sourcing - Information management- Information management - Payment & Expense Reporting- Payment & Expense Reporting - Meetings and Group Travel- Meetings and Group Travel
Proprietary and Confidential
Travel ManagementTravel Management
Attributes of Corporate ProgramsAttributes of Corporate Programs
- Travel manager and/or team- Travel manager and/or team
- Manager is involved in all/most components- Manager is involved in all/most components
- Agile, ability to change direction- Agile, ability to change direction
- Ongoing strategy analysis- Ongoing strategy analysis
- Daily use of travel information- Daily use of travel information
- Routinely update senior management- Routinely update senior management
- Procurement driven- Procurement driven
Proprietary and Confidential
Best PracticesBest Practices
Corporate ProgramsCorporate Programs
- Global travel manager / objectives- Global travel manager / objectives
- One TMC or minimized # globally- One TMC or minimized # globally
- High online adoption, over 75%- High online adoption, over 75%
- Risk management tools implemented- Risk management tools implemented
- Strong policy, flexible by business units- Strong policy, flexible by business units
- High % use of preferred suppliers- High % use of preferred suppliers
- Monitoring of program through MIS- Monitoring of program through MIS
- Corporate card for payment, over 85%- Corporate card for payment, over 85%
- Electronic T&E system, 1-5 day process- Electronic T&E system, 1-5 day process
Proprietary and Confidential
Travel ManagementTravel Management
Government ComponentsGovernment Components- Structure / Strategy- Structure / Strategy
- TMC Relationship- TMC Relationship
- Travel Policy – FTR +- Travel Policy – FTR +
- Strategic Sourcing - GSA- Strategic Sourcing - GSA
- Information management - GSA- Information management - GSA
- Payment & Expense Reporting- Payment & Expense Reporting
Proprietary and Confidential
Travel ManagementTravel Management
Government ProgramsGovernment Programs- - Larger travel teams / few dedicated Travel ManagersLarger travel teams / few dedicated Travel Managers- Less involved in some components, or not at all- Less involved in some components, or not at all- Mostly process oriented vs. strategic- Mostly process oriented vs. strategic- Policy interpretation vs. policy setting- Policy interpretation vs. policy setting- Minimal use of travel information- Minimal use of travel information
Proprietary and Confidential
Travel Management Travel Management BenchmarkingBenchmarking
Comparing Corporate to GovernmentComparing Corporate to Government
Travel Management Comparison to Database
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Primary Components
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Database
Proprietary and Confidential
Best Practices in Travel Best Practices in Travel ManagementManagement
Government Programs StrengthsGovernment Programs Strengths
- - Strong travel policy direction through FTRStrong travel policy direction through FTR
- Structured process for travel booking- Structured process for travel booking
- Implementation of online booking tools - ETravel- Implementation of online booking tools - ETravel
- Negotiating leverage through GSA- Negotiating leverage through GSA
- Card used for travel payment- Card used for travel payment- Electronic T&E expense systems - ETravel- Electronic T&E expense systems - ETravel
Proprietary and Confidential
Best Practices in Travel Best Practices in Travel ManagementManagement
Government Programs WeaknessesGovernment Programs Weaknesses
-- Lack of dedicated travel manager positionsLack of dedicated travel manager positions
- Minimal objectives for travel management- Minimal objectives for travel management
- Inconsistent support from senior management- Inconsistent support from senior management
- Multiple TMCs with varied fees- Multiple TMCs with varied fees
- Outdated internal policies / procedures- Outdated internal policies / procedures
- Inconsistent support of preferred supplier programs- Inconsistent support of preferred supplier programs
- Lack of travel data and utilization of MIS- Lack of travel data and utilization of MIS
Proprietary and Confidential
Best Practices in Travel Best Practices in Travel ManagementManagement
Enhancing the Program – Implementing ChangeEnhancing the Program – Implementing Change
- - Establish defined travel manager staff positionsEstablish defined travel manager staff positions
- Create management objectives for travel program- Create management objectives for travel program
- Build awareness and support of senior management- Build awareness and support of senior management
- Evaluate process change alternatives- Evaluate process change alternatives
- - More TMC consolidationMore TMC consolidation
- Maximize online booking- Maximize online booking
- - Revise / strengthen internal policies / proceduresRevise / strengthen internal policies / procedures
- Monitor use of preferred supplier programs- Monitor use of preferred supplier programs
- Establish procedures to review MIS monthly- Establish procedures to review MIS monthly