This document discusses optimizing travel policy and compliance to reduce travel spend and improve management efficiency. It outlines trends in the China travel market and goals of strategic travel management. Key opportunities to save include optimizing travel policy coverage and effectiveness. Effective policy positions cover air, hotel, ground transportation, and booking channels. Compliance management requires engagement, guidelines, communication, tracking, and corrective actions. Customizing the booking procedure, tracking progress regularly, and benchmarking performance can further optimize savings from travel policy and compliance.

1. Optimizing Travel Policy and Compliance
WU KEJIAN
Ctrip Corporate Travel
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2. China Market Trends
• Travel demand recovered from 2008 financial
crisis, steady growth expected for future
• Airlines consolidate supply through
Merge/JV/Alliance
• Int’l and local hotel chains are expanding
coverage into remote cities
• Car rental services are much improved
• High-speed trains become an alternative way
• Airlines are enhancing B2C (Corporate) relation
• Smart phone is creating new opportunities –
service model and application
• Traditional TMC is facing competition from
emerging OTA
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3. Travel Management Goal
 Reduce Travel Spend
 Improve Management Efficiency
 Enhance Policy and Compliance
Strategic Travel Management
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4. Key savings opportunities by
optimizing policy and compliance
On average 20% of total travel spend
Source: CWT Travel Management Institute
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5. Travel Policy Aspects
Coverage
Travel How many key saving areas are
Policy addressed
Effectiveness
How clearly the rules and standards
are defined
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6. Effective Policy Positions
 Air
Advanced booking: mandatory X+ days
 Preferred airlines: always favored over non-preferred
 Class of service: economy, business for int’l flight over 6
hours
 Discount fares: LLF within booking window
 Hotel
 Preferred hotels: always favored
 Rate cap: staff level and/or in high occupancy cities
 Ground
 Consider rail for short-haul travel, particularly where high-
speed train is available
 Booking Channel
 Mandatory through the appointed agency
 Online for non-urgent booking
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7. Compliance Management
Engage management throughout the organization
Provide traveler with comprehensive guidelines
Promote through communication and training
Success
Factors Drive through point-of-sale measures
Track progress and take corrective actions
Benchmark industry performance
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8. Optimize Booking Procedure
Traveler Approval Traveler
Profiles Process Tracking
Suppliers Policy Unused Tkt
Contract Reminding Reporting
Travel Data
LLF Options
Policy Capture
System Quality Back-office
Interface Assurance Integration
Define Customized Booking Procedure
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9. Track Progress
 Make Business Plan
 Define KPIs for savings target
 Agree on program implementation timeline
 Conduct Regular Performance Review
 Use consolidated data report available from TMC
 Identify leakages & opportunities
 Take Improvement Actions
 Enhance policy communication & training
 Implement new process
 Adjust policy as needed
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10. Benchmark using TMC data
 100% compliance is unrealistic
 Understand own performance by comparing with
industry peers
 Find additional opportunities
Ensure that travel policy remains in line with evolving standards
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11. Business Intelligence (1)
 Drive savings with proper travel policy in place
987元 1020元
34% 43%
0.80 0.82
ADR FFP ATP ADR FFP ATP
With Clear Policy No Clear Policy
ADR: Average Discount Rate
FFP: Full Fare Percentage
ATP: Average Ticket Price
Note: Ctrip 2010 client data
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12. Business Intelligence (2)
 Change traveler behavior can easily achieve savings
Advance booking vs Discount Weekly Average Discount Level
Note: Ctrip 2010 client data
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13. Optimizing Policy Compliance
Engage Mgr Enforce at POS
Influence Track & Improve
Change
Behavior
Traveler TMC Benchmark
Communicate
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14. THANK YOU !
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