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91 st Annual Meeting April 1 – 4, 2012 Rebooting University Travel: PowerPoint PPT Presentation


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91 st Annual Meeting April 1 – 4, 2012 Rebooting University Travel: A Fresh Approach to Conventional Travel Practices. Outline of Presentation. Background and Problems Vision and Goals Implementation plan and Results Question. Background and Problems. Background.

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91 st annual meeting april 1 4 2012 rebooting university travel

91st Annual Meeting

April 1 – 4, 2012

Rebooting University Travel:

A Fresh Approach to Conventional Travel Practices


Outline of presentation

Outline of Presentation

  • Background and Problems

  • Vision and Goals

  • Implementation plan and Results

  • Question


91 st annual meeting april 1 4 2012 rebooting university travel

Background and Problems


Background

Background

  • Public Institution of Higher Ed founded by Thomas Jefferson in 1819

  • FY 2011 University purchased approximately 22 million dollars worth of Travel related services

    • 8 million in Air

    • 1.5 million in rental car

    • 13 million in lodging


The problem

The Problem

  • Lack of Fiscal Management

    • Economies of scale

    • Rogue spend

    • Local hotel discounts

    • Smart purchasing decisions?

  • Not using available Technology

  • Process was fractured and confusing

    • P-card

    • Local lodging reservation process

    • Information / commodity management

  • No University Guests & Visitor travel assistance

    • Booking a trip or hotel while visiting UVA?

    • Leveraging spend


91 st annual meeting april 1 4 2012 rebooting university travel

Procurement

What are the travel rules?

Accounts Payable

Here they are:

Travelers

9

Travel MGMT Vendors

Online booking sites

Hotels

Airlines

Rental Car


Guest visitors

Guest & Visitors

Prospective Students

Website

Travel agent or booking site

Visiting Family

Visiting Professors

Sports fans

Department of Procurement Services University of Virginia


91 st annual meeting april 1 4 2012 rebooting university travel

Vision and Goals


The trigger for change

The Trigger for Change

  • Economic Downturn and new fiscal operating environment triggered change

  • Identified the Travel Commodity as an opportunity

    • 3rd largest commodity in spend (22 million)


The vision

The Vision

  • Create a Travel Management Program that is:

  • Fiscally strategic and well managed

    • Travel MGMT supplier consolidation

    • Create hotel and air contracts

      2) Technologically innovative

    • Customizable and auto-synching

      3) Simplified

      4) Guest & Visitor friendly


Vision of travel mgmt

Vision of Travel MGMT

Post travel audit of vendor charges

Single Award Travel MGMT Vendor

Accurate spend Reports

Online Travel Booking Engine

Customized online booking tool

P-card allowed for lodging

Traveler monitoring and Risk MGMT


Vision of guest visitors

Vision of Guest & Visitors

“One-stop-shop”

Prospective Students

Website

With Travel Tools

Visiting Family

Visiting Professors

Sports fans


91 st annual meeting april 1 4 2012 rebooting university travel

Implementation & Results


Planning

Planning

  • Wow! Complicated, long, and large project

    • Travel affects literally every single department

    • Travel is very personal

      Step 1) Formed a large cross departmental team (future buy-in)

      Step 2) Committee determined that the three mini-projects / request for Proposals would need to be managed:

      - Travel MGMT RFP

      - Lodging Widget RFP

      - Local Lodging RFP

      Projects would be intertwined and require to be simultaneously worked on


91 st annual meeting april 1 4 2012 rebooting university travel

Online Booking Tool

Travel MGMT Vendor

UVA Travel


Travel mgmt rfp

Travel MGMT RFP

  • Identified as the largest and most ambitious project

  • Created and sent out a Travel MGMT survey to peer Universities (benchmarked)

  • Reviewed other Universities RFPs

  • Asked internal Travelers what was most important

  • Went through a very long RFP process – focus evolved into a technology solution supported with professional service

  • Involved internal audit and P-card administrators

  • And after 18 months of Travel MGMT work, the results…


Travel mgmt results

Travel MGMT Results

  • Awarded to Travelectra

  • Low transactional cost / no implementation cost

  • Price match guarantee

  • Completely customizable

    • Travel rules with hard or soft stops

      • No first class tickets, premium car rentals

      • Hotels no more than double the federal CONUS / OCONUS rates

    • Hierarchy / approver routing

    • Different rules for different departments

    • Automated (synchs with data sources)

    • …Which allows for the P-card to be used for lodging

  • Travel Risk and information management


Travel mgmt success overview

Travel MGMT: Success Overview


91 st annual meeting april 1 4 2012 rebooting university travel

Department of Procurement & Supplier Diversity Services University of Virginia


Travel mgmt money

Travel MGMT: Money


Travel mgmt p card audit

Travel MGMT: P-card / Audit

  • P-card can now be used for all three pieces of travel: Air, hotel, and rental car

  • How

    • Online booking tool has all of the University’s travel rules and policies built into it

    • P-card can only be used for lodging reservations booked through the Travelectra tool – which ensures policies are being followed

    • Travelectra P-card compliance process (included at no extra charge)

      • Send P-card instructions to hotel at the time of reservation

      • Post stay audit of bill

      • Disputes errors until resolution

      • Recommends vendor removal in system


91 st annual meeting april 1 4 2012 rebooting university travel

G & V Lodging Widget

Online Booking Tool

Travel MGMT Vendor

UVA Travel


Lodging widget rfp

Lodging Widget RFP

  • What is a Widget?

  • Who are UVA’s Guests & Visitors?


Lodging widget rfp1

Lodging Widget RFP

  • Destination Marketing Organizations (DMO) use

    • Don’t force your website visitors elsewhere

  • Had the Webmaster as part of the RFP team

  • Obtained 4 proposals

    • Vendor selected had most attractive revenue proposal


Lodging widget results

Lodging Widget: Results

  • Awarded to JackRabbit Systems

  • Low implementation cost: $2,900

  • Pricing displayed matches or beats available pricing 95% of the time

  • Free reservation booking tool for small hotels and inns

  • First University in the country with a tool like this

  • Revenue: UVA makes approximately $2 for every $100 in business booked through Widget

  • More leverage in future pricing negotiations with local hotels


91 st annual meeting april 1 4 2012 rebooting university travel

G & V Lodging Widget

Online Booking Tool

Travel MGMT Vendor

Local

Lodging

UVA Travel


Local lodging

Local Lodging

  • UVA spends 1.5 to 2 million on local lodging annually

  • Previous reservation process was costly and inefficient

    • 12 communications back and forth between UVA and vendor

    • Solution was

  • RFP process would be long – negotiations and Agreements for 20 hotels

  • P-card administrator and Audit was involved

  • Surveyed the local hotels – all were interested in a simpler process


Local lodging rfp

Local Lodging RFP

Call hotels for availability and rates

UVA Department

Local Lodging Vendor

Give rates and availability

Circle back around to best option

Soft confirmation / Hold

Create PO and give vendor

order confirmation

Final confirmation communication

Stay occurs

Send invoice to AP

PO Increase needed?

AP

PO adjustment

Pay invoice

Ask Procurement – where is it in the process

Department of Procurement & Supplier Diversity Services University of Virginia


Local lodging success overview

Local Lodging: Success Overview

  • Competitive rates, attrition, and cancellation terms negotiated for next 10 years

  • Vendor to vendor contractuals spelled out

  • Success with negotiating local corporate reward points: $50,000 in room certificates annually

  • University department approved “order confirmation document”

  • Last room availability clause

  • Large efficiency savings from transitioning to the P-card


91 st annual meeting april 1 4 2012 rebooting university travel

Department of Procurement & Supplier Diversity Services University of Virginia


Local lodging success overview1

Local Lodging: Success Overview

  • Negotiated with Travelectra to:

    • Waive booking fees for local lodging

    • Charge the local hotels a 8% transaction fee

    • Travelectra keeps 4% / UVA gets the other 4% (about 80K annually)


Implementation on going

Implementation; On-going

  • How do we get people to use Travelectra?

    • Expect price and ease of use to drive adoption up quickly

    • Grassroots – via the large RFP committees

    • P-card allowed for lodging only booked through Travelectra

    • Training and demos

    • Sell savings potential to MGMT at large departments

    • Risk MGMT advantage

  • Goal is to get to 80% usage within 2 years. If not may consider using some sticks


91 st annual meeting april 1 4 2012 rebooting university travel

Future

Identify Cooperative contracts

National Hotel Contracts

G & V Lodging Widget

Online Booking Tool

Travel MGMT Vendor

Local

Lodging

Car Rental contracts

UVA Travel

Air Contracts


91 st annual meeting april 1 4 2012 rebooting university travel

Finding the Contracts


Cooperative contract

Cooperative contract

Using UVA’s contracts…

You will say

Every time

WOW!


Using uva contracts

Using UVA contracts

Use of Agreement by Third Parties

It is the intent of this Agreement to allow for cooperative procurement. Accordingly, any public body, public or private health or educational institution, or any University related foundation may access this Agreement if authorized by Travelectra.

Participation in this cooperative procurement is strictly voluntary. If authorized by Travelectra, this Agreement may be extended to the entities indicated above to purchase at fees in accordance with this Agreement. Travelectra will notify the University in writing of any such entities accessing this Agreement. No modification of this Agreement or execution of a separate agreement is required to participate. Travelectra will provide semi-annual usage reports for all entities accessing this Agreement. Participating entitieswill place their own orders directly with Travelectra and will fully and independently administer their use of this Agreement to include contractual disputes, invoicing and payments without direct administration from the University. The University will not be held liable for any costs or damages incurred by any other participating entity as a result of any authorization by Travelectra to extend this Agreement. It is understood and agreed that the University is not responsible for the acts or omissions of any entity, and will not be considered in default of this Agreement no matter the circumstances.

Use of this Agreement does not preclude any participating entity from using other agreements or competitive processes as the need may be.


Publically accessible contracts

Publically Accessible Contracts


Questions

Questions?

Questions?

Kevin Crabtree – Senior Buyer

University of Virginia

Procurement & Supplier Diversity Services

[email protected]

434-924-4219


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