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Travel Management Program Optimization and Cost Containment Copyright  ©  2008 CWT   Molly McCue Director Business Develop...
<ul><li>Association of Corporate Travel Executives (ACTE)  </li></ul><ul><li>Travel Spend Survey </li></ul><ul><ul><li>71%...
Tough times present an opportunity to demonstrate the value of an effectively managed travel program Copyright  ©  2008 CW...
Opportunities to optimize and drive savings abound in all areas of travel management Copyright  ©  2008 CWT   Program Opti...
Traveler & Transaction Services <ul><li>Utilize an online booking tool  and  travel counselors </li></ul><ul><ul><li>Non-c...
Program Optimization:  Air, Hotel & Ground Copyright  ©  2008 CWT   Collect spend data & examine contracts Identify sourci...
<ul><li>Companies can save 20% of T&E spend by: </li></ul><ul><ul><li>Improving their travel policy </li></ul></ul><ul><ul...
Program Optimization:  Performance Measurement Copyright  ©  2008 CWT   Establish business goals & identify performance dr...
Meetings and Events <ul><li>Accounts for 30-35% of overall travel spend, yet only about 50% of companies are managing </li...
On Line Booking vs. Travel Management  Company <ul><li>In tough times, travelers may be tempted to book outside the progra...
Program Optimization: Key Cost Savings Initiatives Copyright  ©  2008 CWT   Optimize design of company travel policy Incre...
Thank you. Copyright  ©  2008 CWT
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Cost Containment Presentation

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2009 travel priorities for cost containment

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  • Transcript of "Cost Containment Presentation"

    1. 1. Travel Management Program Optimization and Cost Containment Copyright © 2008 CWT Molly McCue Director Business Development, West Region Carlson Wagonlit Travel
    2. 2. <ul><li>Association of Corporate Travel Executives (ACTE) </li></ul><ul><li>Travel Spend Survey </li></ul><ul><ul><li>71% plan to spend less on travel in 2009 </li></ul></ul><ul><ul><li>79% see cost-cutting as their top business travel concern </li></ul></ul><ul><ul><li>61% said they had approached vendors to renegotiate contracts </li></ul></ul>Copyright © 2008 CWT What the Market is Saying….
    3. 3. Tough times present an opportunity to demonstrate the value of an effectively managed travel program Copyright © 2008 CWT Copyright © 2009 CWT 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% 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?
    4. 4. Opportunities to optimize and drive savings abound in all areas of travel management Copyright © 2008 CWT Program Optimization Traveler & Transaction Services
    5. 5. Traveler & Transaction Services <ul><li>Utilize an online booking tool and travel counselors </li></ul><ul><ul><li>Non-complex trips should be booked online </li></ul></ul><ul><ul><ul><li>Costs less </li></ul></ul></ul><ul><ul><ul><li>Visual guilt when all fares are visible </li></ul></ul></ul><ul><ul><li>Use travel counselors for complex bookings, and executive/VIP services </li></ul></ul><ul><li>Both methods can enforce travel policy </li></ul><ul><ul><li>Counselor scripts </li></ul></ul><ul><ul><li>Messaging on booking tool </li></ul></ul><ul><ul><li>Reporting on all reservations, whether made online or offline </li></ul></ul>Copyright © 2008 CWT
    6. 6. Program Optimization: Air, Hotel & Ground Copyright © 2008 CWT 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 <ul><ul><li>Evaluate strategy & goals regularly </li></ul></ul>3 4 5 1 2
    7. 7. <ul><li>Companies can save 20% of T&E spend by: </li></ul><ul><ul><li>Improving their travel policy </li></ul></ul><ul><ul><li>Increasing traveler compliance </li></ul></ul>Copyright © 2008 CWT Source: CWT Travel Management Institute Program Optimization: Compliance
    8. 8. Program Optimization: Performance Measurement Copyright © 2008 CWT 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 1 2 3 4
    9. 9. Meetings and Events <ul><li>Accounts for 30-35% of overall travel spend, yet only about 50% of companies are managing </li></ul><ul><li>Collecting data on existing spend is a challenge </li></ul><ul><ul><li>Survey internally, especially administrative personnel </li></ul></ul><ul><ul><li>Analyze credit card data </li></ul></ul><ul><li>Proving ROI never more critical </li></ul><ul><ul><li>Today, perception is reality </li></ul></ul><ul><ul><li>Destination analysis </li></ul></ul><ul><ul><li>Measurement of results </li></ul></ul>Copyright © 2008 CWT
    10. 10. On Line Booking vs. Travel Management Company <ul><li>In tough times, travelers may be tempted to book outside the program if they find rates appearing to be cheaper online </li></ul><ul><ul><li>Bad idea for many reasons: </li></ul></ul><ul><ul><ul><li>Loss of volume data </li></ul></ul></ul><ul><ul><ul><ul><li>Puts company at risk of not meeting market share agreements (air) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lose negotiating leverage to maintain/increase discounts with all suppliers </li></ul></ul></ul></ul><ul><ul><ul><li>No quality assurance for suppliers used </li></ul></ul></ul><ul><ul><ul><ul><li>Hotel locations, etc. </li></ul></ul></ul></ul><ul><ul><ul><li>No ability to track travelers in an emergency </li></ul></ul></ul><ul><ul><ul><ul><li>Critical liability for companies </li></ul></ul></ul></ul><ul><ul><ul><li>Terms may be restrictive and/or result in unforeseen fees </li></ul></ul></ul>Copyright © 2008 CWT
    11. 11. Program Optimization: Key Cost Savings Initiatives Copyright © 2008 CWT Optimize design of company travel policy Increase awareness through communication to travelers Enforce booking processes & tools that encourage compliance Monitor compliance through reports to management Build an effective sourcing program with key suppliers – evaluate regularly Engage senior management
    12. 12. Thank you. Copyright © 2008 CWT
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