Download
fundamentals of business travel bangkok 6 october 2008 n.
Skip this Video
Loading SlideShow in 5 Seconds..
Fundamentals of Business Travel Bangkok, 6 October 2008 PowerPoint Presentation
Download Presentation
Fundamentals of Business Travel Bangkok, 6 October 2008

Fundamentals of Business Travel Bangkok, 6 October 2008

162 Views Download Presentation
Download Presentation

Fundamentals of Business Travel Bangkok, 6 October 2008

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Fundamentals of Business TravelBangkok, 6 October 2008

  2. Facilitators David J Lorimer Manager Government Travel Strategy American Express Business Travel Karen Davies Regional Director, NBTA Asia Pacific

  3. Agenda • Section One: Components of Business Travel • Section Two: Technology 101 • Section Three: Trends & Forecasting • Section Four: Groups and Meetings • Section Five: Safety and Security

  4. Agenda – Section One • Components of Business Travel • Travel Procurement • The TMC • TMC Value Proposition • TMC Value Proposition • Key Travel Categories • Distribution • Travel Program Management

  5. Travel Program Best Practice • A well rounded travel management program should have the following goals: • Improved service to the traveller, recognising safety and security; • Better control of travel expenses; • Cost effective purchasing of travel; • Practical procedures for implementing corporate goals; and • Achievement of total quality management of all aspects of the travel services program.

  6. Travel Procurement • The Role of the Travel Manager • The Role of the TMC – Travel Agency Relationships • Partnership • Commodity • The Role of Technology • Bringing Value to the Travel Program • Travel Policy

  7. Travel Procurement – Role of the Travel Manager • Multi-faceted function • Service … Quality Control … Analysis … Purchasing • Key skill concepts: • develops • implements • oversees

  8. Travel Procurement - Responsibilities • Creation and distribution of travel information • Corporate travel website • Traveler safety and security issues • Counsel and advise travelers on matters relating to travel planning • Manage supplier relationships • Measure supplier performance

  9. Travel Procurement - Responsibilities • Establish and lead a company travel team • Liaise with purchasing / procurement • Develop and manage department budget • Serve as corporate card administrator • Develop and analyse travel management reports • Develop and track key metrics

  10. Travel Procurement - Responsibilities • Corporate culture insight • Understanding of Travel Management Fundamentals • Travel Management Foundational Elements • Travel Policy • Travel Management Company • Technology • Excellent Vendor Relationships • Restate into Numbers

  11. Travel Procurement- responsibilities must include … • Focus on Customer Service • Identify Key Measures (less is more) • Measure and Report • Reassess • Communicate • Levers of Service, Savings and Control

  12. A decade + of mergers and acquisitions has reduced the number of competitors Who fits your program? Mega Regional Local agency The emergence of online booking tools and the ITMC – Internet based TMC GetThere Concur (Cliqbook) Travelocity Expedia The TMC – Travel Management Company

  13. The TMC - History • 1970’s – late 90’sA travel agent remunerated by commission for booking • Late 90’s to circa 2002A travel manager remunerated by fees (TF and MF) • 2003 +Increasingly an integrated travel management business partner

  14. The TMC – TMC Configuration Options • Full service agency • On-site agency branch (implant) • Regional Reservation Centre (call centre) • Fulfillment center for online bookings

  15. The TMC – Selecting the right TMC • Step one – be patient • Step two – RFI / RFP process • What are you looking for? • The right corporate culture fit • Quality service for travelers • Levers of Service, Savings and Control

  16. The TMC Value Prop – 3 Pillars- Service • Balance of Online / Offline • Transaction fee remunerates TMC per touch, Management Fee remunerates on cost of travel – Which one suits you ? • Level of Touch • VIP’s • 24 hour • Basic ‘out of country’ touch

  17. The TMC Value Prop – 3 Pillars- Savings • Soft and Hard Savings • Supplier Negotiation • Online adoption • Supplier Savings • Maximise buying power - consolidation of spend • Change in ATP (airlines) • Address internal booking workflow

  18. The TMC Value Prop – 3 Pillars- Control • Client Manager importance • Accurate Data Critical • Historical and live data • Manipulation of data • Market share monitoring • Supplier target monitoring • Supplier Shift !

  19. Key Travel Categories • Air • Hotel • Car • TMC

  20. Distribution – The Distribution Channel • The process used for suppliers to get their products and services to the customer • The distribution costs have had major effects on the airlines and GDS systems

  21. Distribution – How do Travel Principles distribute their products? Up to late 90’s • Traditionally Principles encouraged consumer to go via agents – little or no direct distribution. From late 90’s Principles focus on cost of distribution – move to direct distribution

  22. Distribution – Direct Distribution • Call Centres • Direct Principle owned and run websites (www.qantas.com.au) • Content Aggregated Website(www.wotif.com, www.asiabeds.com)

  23. Distribution – Indirect Distribution • GDS (CRS) – Global Distribution Systems • The Supermarket! • Air inventory • Hotel inventory • Car inventory

  24. Distribution

  25. Distribution – Global Distribution Systems • Sabre • Galileo • Worldspan • Amadeus

  26. Distribution – Distribution Today • Non GDS Direct Airline (and other Principle websites ) • Non GDS Content Aggregated Websites (www.asiabeds.com) • ITMC (via GDS and direct link to principle) • TMC (via GDS and direct link to principle

  27. Distribution • Distribution of airline inventory is a major point of discussion • Will the traditional GDS survive? • Airlines and Principles continue to push customers to their direct connections

  28. Distribution Corporation Commissions & Overrides Rebates Transaction Fee Charges Travel Agency Corporate Card Air Carrier Commissions & Overrides Payment Volume Incentives Government Taxes CRS / GDS Segment Fees

  29. On-going Program Management – Bringing Value • Quantifying the financial benefits of a well managed program • Keeping management and travelers informed as to negotiated savings, new technologies like online booking systems and potential future savings • Knowledge of Market Share Regulations and SOX requirements • Cost containment

  30. On-going Program Management – Travel Policy • To be successful, a well thought out policy must be readily available to travelers in the form of an accessible manual. • Travel policy should be: • Fair and equitable • Leave little to individual interpretation • Clear terminology (not necessarily travel terms) • Cost containment should be the principal purpose

  31. On-going Program Management – Travel Policy • Good travel policy is developed by a team from all appropriate departments (finance, HR, administration, sales & marketing) • Rules unpalatable to the creators will be equally unpleasant to the traveler • Keep the policy current to reflect low cost carriers, industry events and political issues

  32. On-going Program Management – Travel Policy Travel is not a PERK! Success of any travel management programs depends on: • Company Culture • Company goals and objectives • Management Support • Communication Skills • Travel Industry Knowledge • … common sense

  33. On-going Program Management – Dealing with Airlines • Airline ticket costs – up to 70% of your travel budget • 1978 – deregulation in the United States • 2003 – Simplified pricing • 2006 – GDS Content Removal • The impact of LCCs – low cost carriers • Will the growth of LCCs impact your business? • Tiger Airways, Virgin Blue, Jetstar etc.

  34. On-going Program Management – Dealing with Airlines • Airline agreements / contracts take many forms: • Domestic vs. transborder vs. international • Back End • Zone fares • % off discount • All are based on volume – market share • What about travel amenities / soft dollars?

  35. On-going Program Management – Controlling Hotel Costs Asia Pacific forecasts for 2008 • The landscape is changing with traditional low seasons shrinking and hotels forging ahead with new models. Source: AMEX 2008 Global Travel Forecast

  36. On-going Program Management – Asia Pacific Country Forecast Increases for 2008 Source: AMEX 2008 Global Travel Forecast

  37. On-going Program Management – Controlling Hotel Costs • Hotel pricing factors • The supply of available rooms • Are new hotels being built? The cost of construction. • The demand for rooms • The economy • Global, national, local • Significant global events: 9-11, London bombings • Distribution costs

  38. On-going Program Management – Controlling Hotel Costs • Steps to Control Costs • Lease rooms where traffic warrants • Preferred rate programs • Negotiate rates net of commissions • Eliminate no-show charges • Secure LRA room rates • Include amenities • Breakfast, health club charges, high speed internet access, local and 800 phone calls, free shuttles

  39. On-going Program Management – Your bargaining position • Know your numbers and possible usage • Number of room nights used • Stay pattern • Meals taken at the hotel • Use of concessionaires • Meeting and Group functions

  40. On-going Program Management – Car Rental Costs • The least controlled travel service • Car costs versus taxi / limo transfers • What is negotiable? • Car size, insurance, refueling options, GPS • The “perks” – Hertz Gold, National Emerald Aisle • WATCH for check-in counter offers • Upgrades, insurance waivers, satellite radio

  41. Agenda – Section Two • Technology 101 • Assessing technology needs • Travel spend • Technology tiers • Front end technology • Mid office technology • Back office technology

  42. Technology 101

  43. Role of Technology It’s not about the software; it is the solution … what you want to accomplish

  44. Role of Technology - Terminology • Front end - profiles / pre-trip approval / reservations • Mid office - quality control • Back office - data collection & reporting / expense management • GDS • SBT / OBT

  45. Role of Technology POINTS TO CONSIDER: • What kind of data do you need vs. want? • Why is data so important?

  46. Role of Technology - 3 Key Data Streams • Booked data • PNR data • Billed data (or spend data) • Has the greatest value for negotiations • Expensed data • Represents the REAL costs to the company and has the greatest direct effect on the company

  47. Role of Technology – Travel Technology Costs Three primary areas of technology cost • Online booking and fulfillment • Data management • Automated expense reporting

  48. Role of Technology – Online Booking and Fulfillment • The phenomenon of visual guilt • Touch or touchless fulfillment • Direct connections • Corporation booking system, TMC 3rd party system, ITMC

  49. Role of Technology – SBT Differentiators • UI (User Interface) • Administrative Module / Configurability • Global Capabilities • Languages • Currencies • Sources – GDS/GNE/Super PNR/Web Fares/Trains

  50. Role of Technology – SBT Differentiators • Operations Assistance • Provisional itineraries • Void / Cancel / Refund / Exchange • Seat selection • Profile Integration • Integration with other related software • Pricing structure / Level