Disbursements & Travel Services Office Travel Updates February 26, 2013
Travel Agency and Car Rental Agency Background • 82nd Legislature, Senate Bill 5 • SB 5 lifted the requirement that institutions of higher education are required to participate in the state travel program. • UT System and UT Systemwide Travel Council issued request for proposal (RFP) for Systemwide Travel Management Services • The goal is to minimize cost, while improving overall service • Transition to a management fee from a per transaction cost • Billed monthly to each institution
Travel Agency and Car Rental Agency • UTSA represents approximately • 2.42% of all UT Systemwide travel or $896,000 • 1600 domestic transactions and 200 international transactions • Data is based on FY 2011 travel purchases made thru the UTSA contracted travel agencies
UTSA Travel Agencies • Corporate Travel Planners • Most UTSA travel reservations in 2012 were completed with Corporate Travel Planners • UTSA travel agency since January 2009 • Alamo Travel • Not frequently used • UTSA travel agency since January 2009 • Anthony Travel • UTSA travel agency since January 2009; although not utilized • Initial focus was Athletics and has since begun to transition to business travel
Travel Agency Benefits • Streamlined contract management • Uniform service standard requirements • Travel Agency – Management Fee provides a lower overall cost systemwide • Enhanced Service Requirements • Experienced agents/Designated account managers • Minimal hold time • Familiar with institution’s travel policy • Agents have the ability to view all airlines schedules and fares • Agencies have airline executive desk status for assistance with waivers and fare matching
Travel Agency Benefits • Auto enrollment in ISOS • All reservations including domestic can be tracked during emergency situations. • Complies with UT System requirements • Innovative use of technology • Ability to access the Southwest Airlines SWABIZ tool for web fares • Concur on-line travel tool
Travel Agency Benefits • Improved Management Reporting • Improved reporting on travel cost • Lost savings and realized savings • Automated notification to travel for unused ticket
Car Rental Agencies • Authorized car rental agencies are: • Avis/Budget • Enterprise National Holdings • Hertz • UTSA travelers are required to use one of the approved car rental agencies listed.
Car Rental Agency Benefits • Multiple options on rental company, car type and rental locations • Each agency has express service option • Frequent rental rewards • Discounts on international rentals • Free car upgrades and choose your own car options • Additional services • Box trucks • Car Share Programs
UT System Airline Contracts • American Airlines • 2% to 40% discount based on the fare paid and destination • Applicable to partner airlines: Japan, British Airways, Iberia and Alaska Airlines • City Pair state rates are scheduled to expire March 31, 2013; renewal is handled by the State Comptroller’s Office • United Airlines • 2% discount on any fare/destination
UT System Airline Contracts • Southwest Airlines • 2% to 5% discount applied to all tickets purchased within 7 days • Jet Blue • 1% to 10% discount on all non-stop JetBlue flights based on fare paid and destination • City Pair state rates are scheduled to expire March 31, 2013; renewal is handled by the State Comptroller’s Office Note: In order to receive the contracted rates a CLIBA card must be used to purchase airfare.
Hotel Reservations • Travelers may continue to refer to the State Comptroller contract hotels listed on the state website • Travelers may choose to make hotel reservations using the travel agencies or other methods • GSA lodging rates still applicable
Transition to Management Fee • Current travel agency fee is per transaction • Charged at the time airfare is purchased • Management Fee • UTSA will be invoiced monthly by travel agency • Departmental accounts will be charged back for management fee cost for respective travelers • Management fee structure is expected to be 15% less than the current per transaction fee • Cost for the on-line transactions will be significantly lower than the cost associated with full service
Travel Agency and Car Rental Agency • Who is affected? • All employees of UT System and The University of Texas Investment Management Company to include: • Students • Guests • Consultants traveling on behalf of UT System • Patient Travel when in the care of a UT Medical Institution • Everyone systemwide is required to use contracts • Excludes: • Athletic Travel • Group (students) Travel
Implementation Timeline • Travel Agency Contracts • Signed contracts were received February 11, 2013 • Transition will be completed within 90 days • Institutional Participation Agreements and Local Scope of Work – in progress • On-line reservation tool will be available
Implementation Timeline • Travel Agency Meetings • Will meet with Travel Agency representatives within the next two weeks • Car Rental Contracts • Signed contracts were received February 15, 2013. • Meetings will be scheduled with the car rental agency representatives • Transition will be completed within 90 days
Effective Date • May 13, 2013 • All UT Systemwide travel must be purchased thru • Corporate Travel Planners or • Anthony Travel • All UT Systemwide car rentals must be purchased thru • Avis/Budget • Enterprise/National • Hertz
Information & Training Sessions • FAR Meeting Presentations • December 13, 2012 • February 19, 2013 • April 24, 2013 • Information Sessions • March - Information Sessions • HR Training and Development identifying space
Information & Training Sessions • Other Presentations • Dean’s Council • Chair’s Council • Research Advisory Board • Training Sessions • April - June
UT System Approved Exceptions • Travel cost are paid by an outside entity • Emergency situations (flood, hurricane, etc)
UT System Approved Exceptions • UT Agency is unable to provide an airfare within $100 lower fare from an alternate travel provider • Requirements • Travel arranger must gain advance approval from Assistant Controller • Travel arranger must provide approver (in advance of purchase) written documented proof of lower fare. At a minimum, information should include same flights, on the same day with the same restrictions/booking class
Impact for Non-Compliance • Approved by President and CMO at today’s meeting • 1st instance of non-compliance • Traveler or travel arrangers are given one exception if they do not use the UT System-wide agencies. • Notification will be sent to respective Vice President, Account Administrator/Supervisor and traveler/travel arranger.
Impact for Non-Compliance • 2nd instance for non-compliance • Traveler will not be reimbursed for 50% ocost of airfare and/or car rental if not purchased thru the mandated UT System-wide agencies. • Travel arranger – departmental M&O budget will be permanently reduced by 50% for the cost of airfare and/or car rental when not purchased thru the mandated UT System-wide agencies • Notification will be sent to respective Vice President, Account Administrator/Supervisor and traveler/travel arranger.
Disbursements & Travel Services Office Questions?