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R.D. Brown Company

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

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  1. R.D. Brown Company Best Practices in Travel Management November 14, 2012

  2. Topics • Background • Historical look at industry / travel management • Best practice examples and trends • Q & A

  3. 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

  4. 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

  5. Travel Program Components Strategy Policy TMC Data Management Sourcing Payment & Meetings Expense Reporting

  6. 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

  7. 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

  8. 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• Minimal objectives for travel program • Low adoption of online booking • Multiple TMCs with varied fees / services • Outdated travel policies / procedures • Inconsistent support of preferred supplier programs • Lack of travel data and utilization of MIS

  9. 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%

  10. 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%

  11. 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

  12. R.D. Brown Company Questions

  13. 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

  14. 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

  15. 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

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