slide1
Download
Skip this Video
Download Presentation
Monash University Procurement Travel user Group Update August 2008

Loading in 2 Seconds...

play fullscreen
1 / 20

Agenda - PowerPoint PPT Presentation


  • 282 Views
  • Uploaded on

Monash University Procurement Travel user Group Update August 2008. Agenda. Objectives – Monash University Travel Office Current Situation Strategies Travel Policy Recommendations Preferred Supplier Engagement Policy Examples Changes to International Air Travel Suppliers

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Agenda' - Anita


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Monash University Procurement

Travel user Group Update

August 2008

agenda
Agenda
  • Objectives – Monash University Travel Office
  • Current Situation
  • Strategies
  • Travel Policy Recommendations
  • Preferred Supplier Engagement
  • Policy Examples
  • Changes to International Air Travel Suppliers
  • Travel Manager Contract Negotiations
travel advisory office objectives
Travel Advisory Office Objectives

Negotiate better prices and terms for travel goods and services

  • Identify potential new suppliers
  • Negotiate with current and new suppliers on both products and services
  • Create cost reduction opportunities through consolidation

Change Specifications

  • Encourage the development of simplified standards
  • Encourage more widespread use of standards
  • Identify and use lower cost suppliers that meet the Universities quality and compatibility requirements

Build Internal capabilities to manage total travel expenses

  • Build internal travel management capabilities
  • Encourage ‘open markets’ that self regulate specifications and contain costs
  • Encourage cooperation and sharing of information and best practices across all stake holders
where we are at today
Where we are at today

Domestic Travel Consumption

  • 90% of travel between Melbourne, Sydney, Canberra, Brisbane and Perth
  • Domestic spend approximately $2.6 million
  • Leakage approximately 50% ($1.3 million) outside the preferred travel managers
    • Qantas / Virgin Blue preferred domestic airline agreements

International Travel Consumption

  • Complex travel requirements to over 120 destinations throughout the world
  • International spend approx $10.2 million
  • Leakage approximately 22% ($1.8 million) outside preferred travel managers
  • Qantas / Singapore Airlines / Malaysian Airlines international preferred agreements
strategies
Strategies
  • Update travel policy
    • Domestic
    • International
  • Source new preferred airlines that will support Monash travel requirements
  • Align TMC’s to the requirements of the University (and that of the University preferred suppliers)
travel policy recommendations
Travel Policy Recommendations

Domestic

  • Economy class travel only unless approved by the Faculty Dean or Divisional Director
  • Traveller to book lowest available fare within 30 minutes of the travellers preferred departure time
  • Lowest available fare is not restricted to travellers endorsed airline or type of fare required for travel i.e. restricted / non-restricted

International

  • Economy class travel only unless approved by the Faculty Dean or Divisional Director
  • Travel should be based on lowest available fare taking into consideration the following criteria:
    • Total cost of fare including applicable taxes
    • Total journey time
    • Utilisation of Monash endorsed suppliers
domestic policy example
Domestic Policy Example

User

Email Request

22 July – Melbourne to Sydney

Depart 0800 on Qantas

TMC Response

TMC Response

Qantas QF414 0800 $355.95

Virgin Blue DJ817 0745 $210.50

Virgin Blue DJ821 0815 $174.50

TMC notes that Virgin Blue provides lowest fare within policy guidelines and seeks travellers instructions to what their preference is i.e. Book Qantas or book the lower cost Virgin Blue flights

If the traveller chooses the Qantas fare, the TMC requests reason for doing so and records the response and the lowest fare offered for reporting purposes

If the traveller chooses the Virgin Blue fare, the TMC records the lowest fare as being accepted for reporting purposes

domestic fare comparison
Domestic Fare Comparison

Melbourne to Sydney – 12 August Departing 0800

  • Both Virgin Blue and Qantas have similar fare rules
  • Restricted fares are non refundable but can be upgraded to a higher class fare
  • Non restricted fares are fully refundable and can be changed subject to availability

Insight

Statistics show that 26% of travel is being booked on Qantas Non Restricted fare types.

preferred supplier engagement domestic
Preferred Supplier Engagement - Domestic
  • Qantas agreement to remain in place (due for review Nov 2008)
  • Virgin Blue agreement to enhance domestic program

Qantas fares consistently higher than Virgin Blue

Change in policy will encourage low cost fares to be used by travellers

Melbourne to Sydney Average Ticket Price (source Serko)

international policy example
International Policy Example

User

Email Request

15 October – Melbourne to London (return 23 Oct)

Qantas

TMC Response

TMC Response

Qantas $2329.00 (tactical fare)

Malaysian Airlines $2156.00 (tactical fare)

Cathay Pacific $2209.00 (negotiated fare) / $2358.00 (tactical fare)

TMC notes that Malaysian Airlines provides lowest fare within policy guidelines and seeks travellers instructions to what their preference is i.e. Book Qantas or book the lower cost Malaysian Airlines flights

If the traveller chooses the Qantas fare, the TMC requests reason for doing so and records the response and the lowest fare offered for reporting purposes

If the traveller chooses the Malaysian Airlines fare, the TMC records the lowest fare as being accepted for reporting purposes

airline pricing advance purchase 2 months
Airline Pricing – Advance Purchase (2 months)
  • The further in advance travel is booked, the more likely a tactical fare will provide greater savings that what Monash negotiated fare will

Low Season Economy Class Fares to London Departing 15 October (source airline websites, Monash airline negotiations)

airline pricing advance purchase 2 weeks
Airline Pricing – Advance Purchase (2 weeks)
  • The closer travel is booked to the departure date, the more likely a negotiated fare will be used

High Shoulder Economy Class Fares to London Departing 15 August (source airline websites, Monash airline negotiations)

airline pricing business class
Airline Pricing – Business Class
  • Monash receives significant discounts on business class travel through preferred relationships

Business Class Fares to London Departing 15 August

(source airline websites, Monash airline negotiations)

international air travel suppliers
International Air Travel Suppliers

Competitive RFI / RFQ process conducted by the Monash Travel Office focusing on the following criteria:

  • Frequency and schedules to Monash top tier destinations (Europe, Asia, USA and South Africa)
  • Airline services
  • TMC support services
  • Price
  • Contract terms
  • Environmental
contracts to assist monash manage their budgets
Contracts to assist Monash manage their budgets
  • Price of aviation fuel will continue to push fares up over the next 12 – 18 months
  • Objective was to negotiate fixed price net fares over a 12 month period
  • Published fares geared to price increases within the market (this calendar airlines have increased fares on average 14%)

Aviation jet fuel $US per litre (source US Department of Transport)

managing the travel management companies
Managing the Travel Management Companies
  • HRG and Voyager Travel remain as Monash endorsed Travel Management Companies
  • Two year contract with a one year option (at the sole discretion of Monash)
  • New agreements made up of three parts:
    • General terms (Monash driven)
    • Supplier Services Schedule
    • Supplier Service Level Agreements
  • Key features of the new contracts:
    • Normalised pricing (clear understanding of how pricing is applied by the TMC’s)
    • Standardised services between the two TMC’s
    • Standardised Service Level Agreements (although agreed thresholds may differ)
    • Standardised reporting
    • Standardised quarterly review processes
    • Introduction of business continuity documentation and service recovery processes
travel management pricing update
Travel Management Pricing Update

Key Points

  • Standardised pricing between the two TMC’s

Voyager Travel

  • Increased domestic online booking fee from $10 to $12 per ticket issued
  • Increased domestic booking fee (traditional) from $25 to $26 per ticket issued
  • Introduced an international booking fee of $135 for international bookings with equal to five or more sectors
  • Maximum CPI increase on fees for year two of contract

HRG Australia

  • No increase in fees within the new agreement
  • Maximum CPI increase on fees for year two of contract
  • Decreased fees on international booking fee from $155 to $135 in April 2008
updates
Updates
  • Group information sessions
  • Blog (http://blogs.monash.edu.au/travel)
  • Email ([email protected])
  • Intranet
ad