AnCon09 Brown

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AnCon09 Brown

  1. 1. Society of Government Travel Professionals <ul><li>Best Practices in Travel Management </li></ul><ul><li>February 4, 2009 </li></ul>
  2. 2. Topics <ul><li>Background </li></ul><ul><li> </li></ul><ul><li>Historical look at industry / travel management </li></ul><ul><li>Corporate vs. government practices </li></ul><ul><li> </li></ul><ul><li>Best practices of travel management </li></ul><ul><li>Strengths / weaknesses of government travel management </li></ul><ul><li>Need for change </li></ul><ul><li> </li></ul>
  3. 3. Presenter <ul><li>Ralph Brown, President R.D. Brown Company </li></ul><ul><li>Travel management consulting services since 1983 </li></ul><ul><li>Specializing in travel program benchmarking / procurement </li></ul><ul><li>More than 400 clients in all sized travel spend ranges </li></ul><ul><li>Projects include: GSA, DOE, DOI, DOL, DOT, DOA, NSA </li></ul><ul><li>Currently working with GSA MIS solution </li></ul>
  4. 4. R.D. Brown Company Tools <ul><li>“ Best Practices in Travel Management” – benchmarking </li></ul><ul><li>“ Diagnostics” - European travel program benchmarking </li></ul><ul><li>Service Cost Index – reflects value of the TMC contract </li></ul><ul><li>Mx4, Meetings Management Maturity Measurement </li></ul>
  5. 5. Evolution of Travel Management <ul><li>Manager Focus </li></ul><ul><li>Unstructured Travel Management </li></ul><ul><li>1985 > rebating Travel Consolidation </li></ul><ul><ul><li>Telephone & Paper Process </li></ul></ul><ul><ul><li>1990 > air deals possible Reduction in Travel </li></ul></ul><ul><ul><ul><li>Technology Growth </li></ul></ul></ul><ul><ul><ul><li>1995 > commission changes Strategic Sourcing </li></ul></ul></ul><ul><ul><ul><ul><li>Internet Technology </li></ul></ul></ul></ul><ul><ul><ul><ul><li>2000 > online sites GDS Content Questions </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Electronic Processing </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>online tools, controls Process Cost Control </li></ul></ul></ul></ul></ul>
  6. 6. Current State of Travel Industry <ul><li>Poor Economic Environment </li></ul><ul><li>1. Reduced Business Travel </li></ul><ul><ul><li>Companies implementing new cost controls </li></ul></ul><ul><ul><li>Conservative approach on travel </li></ul></ul><ul><ul><li>Concerns about corporate profitability for 2009 </li></ul></ul><ul><li>2. Airline Difficulties </li></ul><ul><ul><li>High number of delays and poor service performance </li></ul></ul><ul><ul><li>Understaffing of operations, maintenance issues, and passenger services </li></ul></ul><ul><ul><li>Consolidation of airlines (DL + NW) </li></ul></ul><ul><ul><li>Reduction in capacity </li></ul></ul>
  7. 7. Current State of Travel Industry <ul><li>Window for Savings Opportunities </li></ul><ul><li>1. Tightening of policies </li></ul><ul><ul><li>Changing class of service for international travel </li></ul></ul><ul><ul><li>Mandate for online booking </li></ul></ul><ul><ul><li>Less travel for meetings </li></ul></ul><ul><ul><li>Revising of travel entitlements / standard of travel </li></ul></ul><ul><li>2. Stronger negotiating position </li></ul><ul><ul><li>Hotels hungry for business </li></ul></ul><ul><ul><li>Airlines looking for loyal customers / providing discounts </li></ul></ul><ul><ul><li>Car, limo, and other suppliers in need of new business </li></ul></ul>
  8. 8. Current State of Travel Industry <ul><li>Window for Savings Opportunities </li></ul><ul><li>3. Reviewing processes </li></ul><ul><ul><li>Consolidation of agency services – global approach </li></ul></ul><ul><ul><li>Service configuration changes </li></ul></ul><ul><ul><li>Maximize online booking, minimize service fees </li></ul></ul><ul><ul><li>Review of meetings management strategies </li></ul></ul><ul><li>4. Changing traveler buying patterns </li></ul><ul><ul><li>Greater drive to preferred suppliers </li></ul></ul><ul><ul><li>Encouraging shorter trips / more effective travel </li></ul></ul><ul><ul><li>Stronger policy support and monitoring </li></ul></ul><ul><ul><li>Better support from senior management </li></ul></ul>
  9. 9. Benchmarking Travel Programs <ul><li>Strategy Policy </li></ul><ul><li>TMC MIS </li></ul><ul><li>Sourcing Payment </li></ul><ul><li>Expense Reporting </li></ul>
  10. 10. Travel Management <ul><li>Corporate Components </li></ul><ul><li>- Structure and Strategy </li></ul><ul><li>- TMC Relationship </li></ul><ul><li>- Travel Policy </li></ul><ul><li>- Strategic Sourcing </li></ul><ul><li>- Information management </li></ul><ul><li>- Payment & Expense Reporting </li></ul><ul><li>- Meetings and Group Travel </li></ul>
  11. 11. Travel Management <ul><li>Attributes of Corporate Programs </li></ul><ul><li>- Travel manager and/or team </li></ul><ul><li>- Manager is involved in all/most components </li></ul><ul><li>- Agile, ability to change direction </li></ul><ul><li>- Ongoing strategy analysis </li></ul><ul><li>- Daily use of travel information </li></ul><ul><li>- Routinely update senior management </li></ul><ul><li>- Procurement driven </li></ul>
  12. 12. Best Practices <ul><li>Corporate Programs </li></ul><ul><li>- Global travel manager / objectives </li></ul><ul><li>- One TMC or minimized # globally </li></ul><ul><li>- High online adoption, over 75% </li></ul><ul><li>- Risk management tools implemented </li></ul><ul><li>- Strong policy, flexible by business units </li></ul><ul><li>- High % use of preferred suppliers </li></ul><ul><li>- Monitoring of program through MIS </li></ul><ul><li>- Corporate card for payment, over 85% </li></ul><ul><li>- Electronic T&E system, 1-5 day process </li></ul>
  13. 13. Travel Management <ul><li>Government Components </li></ul><ul><li>- Structure / Strategy </li></ul><ul><li>- TMC Relationship </li></ul><ul><li>- Travel Policy – FTR + </li></ul><ul><li>- Strategic Sourcing - GSA </li></ul><ul><li>- Information management - GSA </li></ul><ul><li>- Payment & Expense Reporting </li></ul>
  14. 14. Travel Management <ul><li>Government Programs </li></ul><ul><li>- Larger travel teams / few dedicated Travel Managers </li></ul><ul><li>- Less involved in some components, or not at all </li></ul><ul><li>- Mostly process oriented vs. strategic </li></ul><ul><li>- Policy interpretation vs. policy setting </li></ul><ul><li>- Minimal use of travel information </li></ul>
  15. 15. Travel Management Benchmarking <ul><li>Comparing Corporate to Government </li></ul>
  16. 16. Best Practices in Travel Management <ul><li>Government Programs Strengths </li></ul><ul><li>- Strong travel policy direction through FTR </li></ul><ul><li>- Structured process for travel booking </li></ul><ul><li>- Implementation of online booking tools - ETravel </li></ul><ul><li>- Negotiating leverage through GSA </li></ul><ul><li>- Card used for travel payment </li></ul><ul><li>- Electronic T&E expense systems - ETravel </li></ul>
  17. 17. Best Practices in Travel Management <ul><li>Government Programs Weaknesses </li></ul><ul><li>- Lack of dedicated travel manager positions </li></ul><ul><li>- Minimal objectives for travel management </li></ul><ul><li>- Inconsistent support from senior management </li></ul><ul><li>- Multiple TMCs with varied fees </li></ul><ul><li>- Outdated internal policies / procedures </li></ul><ul><li>- Inconsistent support of preferred supplier programs </li></ul><ul><li>- Lack of travel data and utilization of MIS </li></ul>
  18. 18. Best Practices in Travel Management <ul><li>Enhancing the Program – Implementing Change </li></ul><ul><li>- Establish defined travel manager staff positions </li></ul><ul><li>- Create management objectives for travel program </li></ul><ul><li>- Build awareness and support of senior management </li></ul><ul><li>- Evaluate process change alternatives </li></ul><ul><li>- More TMC consolidation </li></ul><ul><li>- Maximize online booking </li></ul><ul><li>- Revise / strengthen internal policies / procedures </li></ul><ul><li>- Monitor use of preferred supplier programs </li></ul><ul><li>- Establish procedures to review MIS monthly </li></ul>

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