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AnCon09 Brown

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Transcript

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

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