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R.D. Brown Company. Best Practices in Travel Management November 14, 2012. Topics. Background Historical look at industry / travel management Best practice examples and trends Q & A. Presenter. Ralph Brown, President R.D. Brown Company

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r d brown company
R.D. Brown Company

Best Practices

in

Travel Management

November 14, 2012

topics
Topics
  • Background
  • Historical look at industry / travel management
  • Best practice examples and trends
  • Q & A
presenter
Presenter
  • Ralph Brown, President R.D. Brown Company
  • Travel management consulting services since 1983
  • Specializing in travel procurement and benchmarking
  • More than 400 corporate clients in all sized travel-spend ranges
  • Currently working with:

McDonald’s, ITW, Lam Research, Blank Rome, GSA

r d brown company tools
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
  • OnTAP – Online Travel Agency Procurement
travel program components
Travel Program Components

Strategy Policy

TMC Data Management

Sourcing Payment &

Meetings Expense Reporting

best practices in travel management
Best Practices in Travel Management

Indicators of a Strong Travel Program

  • Designated responsibility for travel within the company
  • Single TMC approach with company-wide utilization
  • Structured approval process for business travel
  • Implementation of online booking tool, high adoption
  • Strong travel policy direction, senior management support
  • Structured approach for travel supplier sourcing
best practices in travel management1
Best Practices in Travel Management

Indicators of a Well-Managed Program

  • High utilization of preferred air, hotel, and car suppliers
  • Structured approach for meetings management
  • Consolidated data for sourcing and policy monitoring
  • Corporate card used for travel payment, no personal cards
  • Electronic T&E expense system
best practices in travel management2
Best Practices in Travel Management

Indicators of a Weak Program

  • Inconsistent support from management
  • Minimal objectives for travel program
  • Low adoption of online booking
  • Multiple TMCs with varied fees / services
  • Outdated travel policies / procedures
  • Inconsistent support of preferred supplier programs
  • Lack of travel data and utilization of MIS
best practice trends
Best Practice Trends

Programs - $1 million to $10 million air20072012

  • Designated travel manager / objectives 67% 81%
  • One TMC for NA 62% 79%
  • Global travel program 26% 38%
  • High online adoption, over 75% 28% 44%
  • Structured pre-trip approval process 47% 76%
  • Risk management tools implemented 22% 39%
best practice trends1
Best Practice Trends

Programs - $1 million to $10 million air20072012

  • Up-to-date, strong policy 37% 58%
  • Structured hotel program 51% 69%
  • Monitoring of program, web-based MIS 59% 82%
  • Corporate card for payment, over 75% 47% 64%
  • Electronic T&E system, 1-5 day process 25% 39%
best practices in travel management3
Best Practices in Travel Management

How Suppliers Can Best Support Clients

  • Stay attentive to service issues / problem resolution
  • Provide data to support monitoring of utilization
  • Communicate opportunities for savings
  • Think “out-of-the box” for enhancing traveler experience
  • Demonstrate value for cost
  • Stay proactive
window for best practice changes
Window for “Best Practice” Changes

Focus on 2013

1. Review processes – benchmark current program

  • Consolidation of agency services – global approach
  • Service configuration options
  • Maximize online booking, minimize service fees
  • Review of meetings management strategies

2. Change traveler buying patterns

  • Greater drive to preferred suppliers
  • Encouraging efficient trips / more effective travel
  • Stronger policy support and monitoring
  • Better support from senior management
window for best practice changes1
Window for “Best Practice” Changes

Focus on 2013

3. Tightening of policies

  • Class of service for international travel
  • Mandate for online booking
  • More effective travel for meetings
  • Revising of travel entitlements / standard of travel

4. Stronger negotiating position

  • Hotels trying to raise rates but still hungry for business
  • Airlines looking for loyal customers / providing discounts
  • Car, limo, and other suppliers want new business
best practices in travel management4
Best Practices in Travel Management

Enhancing the Program – Implementing Change

  • Establish defined travel manager responsibility
  • Create management objectives for travel program
  • Build awareness and support of senior management
  • Evaluate process change alternatives

- TMC optimization

- Maximize online booking

  • Revise / strengthen internal policies / procedures
  • Monitor use of preferred supplier programs
  • Establish procedures to review MIS monthly