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Gbta Presentation Transforming Fulfillment

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A process to reduce reservation fulfillment costs by as much as 100%.

A process to reduce reservation fulfillment costs by as much as 100%.


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  • 1. TRANSFORMING TRAVELFULFILLMENTBy Steve Reynolds, President - The R GroupJune 14, 2012 Proprietary and Confidential. Please do not distribute without permission.
  • 2. Agenda Introductions Travel Fulfillment Process Defined Estimated costs and drivers Path way to lower cost fulfillment  $10 - $5 - $0 Summary Q&A
  • 3. Introductions The R Group  Steve Reynolds, President, Steve.Reynolds@thergroup.net Technology, Supplier Management, Procurement, and Transformational BPO TMCs (Amex & BCD), OTAs (Expedia, Orbitz, Priceline, Travelocity) CTD Systems  Joe Monaghan, Executive Vice President, Joe@ctdstravel.com HP  Sandy Prosser, Global Travel and Meetings Service Delivery, sandy.prosser@hp.com PTC  Kathy Briski, SVP PTC, Kathy@partnershiptc.com
  • 4. Travel Fulfillment DefinedOnlineBooking PN Mid-office MI Back-office R RSystem Quality Control ARC Report Recon Itineraries Credit Card Recon Reservation Commission Tracking Improvement Data Feeds (reporting) Ticketing Misc. Processes Pre-Trip Approvals International Rate DeskReservations Exception ProcessingHelpdeskAfter Hours
  • 5. Current Cost Estimates andDriversOnlineBooking PN Mid-office MI Back-office R RSystem $3-$5 $7.00 $1.00 80% 100% $20.00 20%ReservationsHelpdeskAfter Hours Average costs online, touch-less $8.00$25-$50 Average costs traditional, touched $28.00 Total average fee $12.00 (80%) $10M = $185K
  • 6. Phase one – Costs < $10.00 Standardize, Simplify, and Automate processes  Complexity and touches increase costs  Are they worth it? Reduce calls to agents  High exception rate (1:1)  Educate travelers on when to call (or not) and costs Reduce exceptions  Online = touchless  Profile Management Tool  Any tasks that stop a reservation from ticketing/kick-out  Remarks entered by traveler thru online booking – “Prefer first floor room”.  Missing or invalid documentation – CC’s, accounting codes, approval codes.  Lack of reason code and/or logic  Missing or invalid comparison fares  International/complex itineraries  AAirpass, SWA, Direct Connects, etc. Improve touchless by 10% = savings of $1.20 per ticket
  • 7. Reduce costs per transaction (<$2.50) Discuss fulfillment costs with TMC.  Fully understand the definition for each transaction  Touched, Untouched, Hotel/Car Only, PNR/Ticket  Remove exceptions from the process, automate everywhere possible Move exception handling offshore/at home agents  Possible to cut costs in half - $20 to$10 Reduce backoffice and ARC reporting costs  Purchase reporting solution directly from vendor  File weekly ARC report using offshore labor  Potential to reduce the costs in half - .50 Saving total  Processing - $1.00  Exceptions - $10.00  Backoffice - .50  Average 90% = $2.40 (versus $9.90)
  • 8. Radical cost reductions ($0 fee) Reduce dependency upon TMC back-office data  Use Expense, Card, and Vendor data instead  Examine the purpose for reporting – is it worth it? Move all calls offshore (VIP, After Hours, IRD)  Potential for 50% cost savings on high cost transactions Allow TMC to keep all commissions and incentives  Commissions, overrides, listing fees, Pay For Performance, etc.  Use their contracts and discounts, not yours  Expect better fare and rate discounts (audit and benchmark) Allow travelers to book direct  Go the OTA route  Capture data thru Card, T&E, third party, email, and supplier feeds  Establish a low cost culture using game theories
  • 9. Summary(From $12 to $0) Reduce calls thru online adoption and education Reduce manual exceptions thru simplification and automation Reduce dependency upon TMC back-office data Allow agency to use offshore staffing where appropriate Allow TMC to keep all commissions and incentives Allow travelers to book direct thru OTA or supplier sites
  • 10. We Want to Hear From You! Please take a moment now to complete an evaluation. Go Green!  Complete your evaluation from the mobile app or http://m.gbta.org. Paper surveys can be turned in to the GBTA room volunteer upon exit.

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