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generation
yre-think your travel strategy
Presented by Liza Hall
generationyre-think your travel strategy
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generationyre-think your travel strategy
WHAT IS TRAVEL MANAGEMENT CONSULTING?
THE CHANGING ROLE OF TRAVEL MANAGEMENT
SERVICES & SUPPLY CHAIN MANAGEMENT
ARE SAVINGS A GOAL?
GENERATION YS 4 DIMENSIONS TO TRAVEL STRATEGY APPROACH
SERIOUS ABOUT SAVINGS? RECOMMENDATIONS
STRATEGIC ASSESMENT PROCESS
AGENDA
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Yet, what every organisation still wants is ..
To minimise cost.
Maximise service to travellers.
Streamlined efficient internal processes.
This partnership may be the answer to your dilemma!
Acting as an extension of your Procurement division and your company representative, Generation Y will negotiate
and manage all your contracts, while saving you the expense and headache or of hiring a full-time employee, or
relying on a TMC that may or may not have your Companys best interests at heart.
Benefits
Depending on size, outsourcing the TM function may allow the sharing of a single head across multiple corporateclients reducing the expense of a head count.
Travel Industry expertise is shifted to an external subject matter expert.
Outsourcing should assist in cost reduction of TM services.
Services may utilised full time, part time or interim.
generationyre-think your travel strategy
WHAT IS TRAVEL MANAGEMENT CONSULTING?
Not always recognized as a difference-maker in the boardroom, progressive companies are becoming more aware that
their Business Travel must function as a tightly structured operation to achieve their goals.
Some Companies Employ Travel Managers, and some would rather not add additional resources.
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Business Process Design.
Standardise operations & procedures .
Creation of the Company Travel Policy - Implement Travel Policy with client and suppliers.
Establish or Improve business Relationships with key Suppliers Air, Lodging, Car , TMC, Card.
Up-skill Procurement & Administrators to enhance their knowledge and efficiency.
Review Suppliers Current Contracts, Renew and Renegotiate Contracts.
Analyse Management reports & report back to Finance.
generationyre-think your travel strategy
WHAT IS TRAVEL MANAGEMENT CONSULTING
Digging deep to understand your corporate culture and then assist you to align your travel program
precisely to your organisations key strategic goals!
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THECHANGING ROLE OF TRAVEL OF TRAVEL MANAGEMENT
The evolution of Travel Management, mirrors advancements in technology and changes in travel distribution.
In the past 50 years, the corporate travel industry has gone from being a highly regulated industry (in the 1960s)
to
the deregulated competitive sourcing environment it is today.
The travel management function came into its own in the 1990s as the combination of technology and the
willingness of airlines to negotiate corporate discounts led to more sophisticated travel management techniques.
1960s 1970s 1980s 1990s 2000s
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Finance
TMC
International Res.&or Domestic Res.
24 Hour ECC
ManagementReports
Travel Alerts
Visas
Air
Lodging
Car
CBT
Card
Internal Processes
Travel Policy
KPIs / SLAs
Procurement
generationyre-think your travel strategy
CURRENT STRUCTURE
Best for me or the
company I manage?
Considerations
What is the level of control from a business
and expense perspective?
Is service optimal?
Management Reports comprehensive?
Information Distribution to various
departments and divisions consistent?
Are Travel Policies, Profiles up to date?
New Technology offered to assist in costcontainment eg. CBT?
Are the preferred suppliers being adhered too
and the relationships nurtured?
Are Best practice and possible fare options
being offered and utilised as the norm?
Are you getting the best for your spend?
Has a good relationship been established?
Are departments informed of potential travel
risks, news or promotions daily, weekly?
Is Travel Spend Managed adequately?
How often is information distributed?
Override
commissions
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Financ
e
Procurement
ManagementConsultant
Air
Lodging
Car
CBT
TMC
International Res. &/ Domestic Res. if
required.
Visas
ManagementReports
Travel Alerts
24 Hour ECC
Card
Internal Processes
Travel Policy
KPIs / SLAs
Traveler needs
IT
generationyre-think your travel strategy
PROPOSED STRUCTURE
Potential Benefits
Increased Control from a Business
perspective
Procurement will be updated and kept in theloop constantly.
Procurement can join in when and if they
deem necessary.
Suppliers Understand they are monitored by
someone in the know.
Reports can be analysed by someone in the
know. Information Distribution can be monitored.
Travel Policies and Profiles will be kept
updated.
Technological advancements will be offered
to the business when and if required.
Supplier relationships nurtured
Monitoring of Best practice best fare
options? Improved service levels.
Improved information distribution ie
potential travel risks, news or promotions
Reduced costs as a result of tighter controls.
Happier Travelers
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THECHANGING ROLE OF TRAVEL OF TRAVEL MANAGEMENT
Procurement, Finance and IT are becoming more influential in Travel Management.
Finance
Finance is always interested in cost containment.
Technology
Technology is now playing a role embracing the Business Intelligence to assist procurement in identifyingopportunities of cost containment
Procurement
The more travel is spoken about as a commodity, the more involvement from Procurement.
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Travel Manager
Procurement
Finance
generationyre-think your travel strategy
THE CHANGING ROLE OF TRAVEL MANANGEMENT
Travel Management within corporations works best as a multidisciplinary team.
From a CFO perspective, expense Control is imperative to
improve company performance.
Procurement often views Travel as a Commodity, an indirect
expense that perhaps cannot be controlled.
(Air, Car, Hotel)
The Result Shift within the company as Travel Management is now
viewed as a critical expense to manage.
Management Consultant works hand in hand with
Procurement and Finance.
Finance has direct input into Policy Creation
Metrics to track performance of Suppliers are introduced
- KPIs & SLAs.
Working alongside Finance, allow distribution of
compliance monitoring to individual divisions, therefore
impacting on travel planning and booking behaviour.
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SERVICES
TRAVEL MANAGEMENT SUPPORT
Supply Chain Management Travel
Management Report analysis
TMC Reviews
Benchmarking reviews
Supplier Relationship maintenance
Travel Policy updates
Travel Industry updates
Vendor re-negotiations
TMC Management
Market place technology trend advice MICE sourcing and assistance
Training Administrators / Travelers
STRATEGIC SERVICES
Customised Procurement Strategy Travel Assessments
Travel Policy development & assistance
Process Flow
Strategic sourcing - Car, Air, Hotel, Card
Payment Option advice
Corporate Booking Tool assistance
Implementation assistance
TMC Cost Challenges
Supplier negotiations Training Administrators / Travelers
Service Level Agreements
EIA Supplier Assistance
Services may utilised as needed, and either full time, part time or ad hoc depending on your company's
unique requirements.
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Travel Company
Interventions
Fee negotiatinsTMC Cost Challenges
Service Delivery Assesments
Service Offerings
Reporting Assessments
Consultant interviews
TMC
CAR
SUPPLY CHAIN MANAGEMENT
Card &
SBT / Supplier Tech.
Emerging Technology
Demand Management
Supplier assesments
CARCar
Rate vs Quality
Service Delivery
generationyre-think your travel strategy
Accommodation &
MICESupplier negotiations
Revenue Management
Transparency
Rate negotiations
Meetings, Incentives,
Conferencing & Events
Strategic Sourcing
Airlines
Spend Analysis
Opportunity identification
Benchmark accuracies
Parnterships
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ARE SAVINGS AN ISSUE?
Savings..
What is your Goal?
About The Same
As Last Year
Moderately More
Than Last Year
Significantly More
Than Last Year
Depends - How
Much Is Really
Possible?
Savings Management
Savings Management
+ Light Sourcing
+ Stronger Compliance
Savings Management
+ Heavy Sourcing
+ Policy Changes (by department?)
Strategic Review of:
Contracts, Suppliers and Policies
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GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY
Organisational Alignment
Financial Alignment Supplier Alignment
Operational Alignment
Travel Strategies
Need ProperAlignment On FourDimensions
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How clear is the ownership of the travel policy?
How clear is the process for making significantchanges to the travel policy?
How effective are communications with key
stakeholders? How well is Travel organised?
How well does procurement interact withoperations?
To what degree are Travel Councils or Centers ofExcellence used successfully?
1. OrganisationalAlignment
generationyre-think your travel strategy
GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY
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To what extent are the goals of the company tied tocompensation?
To what extent are travelers or their budgets charged forTravel services?
How are commissions, overrides and incentivesdistributed?
Are booking fees charged differently based on the formof booking?
Is there any form of subsidisation made to reward themost desired behavior?
How effective is the process for obtaining projectfunding, e.g. for new technology or third-party services?
2. FinancialAlignment
generationyre-think your travel strategy
GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY
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How strong are your relationships with your main suppliers?
What makes it so?
How effective are your main suppliers at helping you achieveyour goals?
How well briefed are they on your goals? To what extent do you have practical goals for your key
suppliers?
How effective is the feedback and correction process?
How successful are your suppliers at bringing you innovationsthat improve your travel program?
3. Supplier
Alignment
GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY
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How well suited is your agencys configuration to yourservice needs?
To what extent are your agency counselors trained toimprove compliance to travel policy?
How easy is it for your agency and self-booking tool tohelp shift share to the desired suppliers?
How effective is pre-trip approval and self-booking forimproving travel policy compliance?
To what extent is your agency and card data beingconsolidated?
How effective are your analytical tools at identifyingsaving opportunities?
4. OperationalAlignment
generationyre-think your travel strategy
GENERATION Y - 4 DIMENSIONS OF TRAVEL STRATEGY
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SERIOUSABOUT SAVINGS?... RECOMMENDATIONS.
generationyre-think your travel strategy
Aligned Booking
Platform
Linked toCorporateBooking
Tool
Single form
of Payment?
UpdatedTravel
Policy
Allows for better capturing of data.
Booking process can be standardised.
Consolidated Expense =
Less time on Recons
less admin
Stricter control
Greater Control
& Savings
ExpenseReporting
System
A common electronic expense reporting tool that
can help standardise advances, re-imbursement
& aggregate expense data.
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WHAT IS A CORPORATE SELF BOOKING TOOL
Corporate Booking Tools are becoming mainstream to
automate process and enforce best practice.
A CBT is a comprehensive travel management solution,
that is able to serve every aspect of corporations travel
needs through a single entry point!
The internet has changed the rules of doing business, and
it has transformed the way we shop, communicate andtravel.
Result
Sophisticated travel technology solutions
More choice
More information
More security
More control in an increasingly mobile world.
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WHAT IS THE ROI ON TECHNOLOGY INVESTMENT
Measure Cost of current process & Additional Productivity savings, if automated.
Automation & Sophistication analysis are not solutions but facilitators of improved
process.
Monitoring travel Policy Compliance is cornerstone to an effective Travel costreduction Strategy.
Automation brings consistency to reservation process & Data analysis.
Goal is to implement actions to change travel behavior and drive cost reduction.
1. Improve Travel Efficiency
2. Drive Greater Travel Cost Reduction
Brings visability at individual transaction level.
Provides greater insight into trip purpose, therefore identifying unnecessary trips.
3. Drive Greater Travel Cost Avoidance
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TRADITIONALAIRBOOKING RESERVATION PROCESSS
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CORPORATE BOOKING TOOL RESERVATION PROCESSS
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EXAMPLE OF A CORPORATE BOOKING TOOL
generationyre-think your travel strategy
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http://www.amadeus.com/media/corporations/AeTM/index.htmlFor 5 minute demonstration :
EXAMPLE OF A CORPORATE BOOKING TOOL
http://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.htmlhttp://www.amadeus.com/media/corporations/AeTM/index.html8/2/2019 GenerationY Travel Management Solutions
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ASSESMENT
EVALUATE
AND
SOURCE
IDENTIFY
AND GO
TO MARKET
IMPLEMENT
AND
TRACK
ONGOING
TRAVEL
MANAGEMENT
Complete
contracts and
delivery time lines
Research & review current
travel behaviour.
Fact Finding.
Select Preffered
with Stakeholders
approval
Implent Contracts& Monitor Vendor
Behaviours.
Provide internal
training
Monitor Supplier
Performance by means
of Business Reviews.
Determine Stakeholder
objectives
Stakeholder &
Traveler input
Consult with
Stakeholders and
Travelers.
Supply Chain
Management
Determine Concerns RFI from potential
Suppliers
Obtain SLAs and
KPIs
Monitor Travel
Policy adoptions
and adherence
Ongoing Cost Cutting and
Opportunity identication.
Asses ROI of
selected Strategies
STRATEGICASSESMENT PROCESS
generationyre-think your travel strategy
ASSESMENT
EVALUATE
AND
SOURCE
IDENTIFY
AND GO
TO MARKET
IMPLEMENT
AND
TRACK
ONGOING
TRAVEL
MANAGEMENT
Complete
contracts and
delivery time lines
Research & review
current travel behaviour.
Fact Finding.
Select Preffered
with Stakeholders
approval
Implent Contracts& Monitor Vendor
Behaviours.
Provide internal
training
Monitor Supplier
Performance by means
of Business Reviews.
Determine Stakeholder
objectives
Stakeholder &
Traveler input
Consult with
Stakeholders and
Travelers.
Supply Chain
Management
Concerns
RFI from
potential
Suppliers
Obtain SLAs and
KPIs
Monitor Travel
Policy adoptions
and adherence
Ongoing Cost Cutting
and Opportunity
identication.
Asses ROI of
selected
Strategies
Business Intelligence determines the
Strategy and Tactical agenda to move forward .
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QUESTIONS.
2
2
2
22
2
QUESTIONS
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Strategy without tactics is the slowest route to victory.Tactics withoutStrategy is the noise before defeat.
Sun Tzu
generation yre think your travel strategy
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