AnCon09 Brown
- 1. Society of Government Travel Professionals Best Practices in Travel Management February 4, 2009
- 2. Topics Background Historical look at industry / travel management Corporate vs. government practices Best practices of travel management Strengths / weaknesses of government travel management Need for change
- 3. Presenter Ralph Brown, President R.D. Brown Company Travel management consulting services since 1983 Specializing in travel program benchmarking / procurement More than 400 clients in all sized travel spend ranges Projects include: GSA, DOE, DOI, DOL, DOT, DOA, NSA Currently working with GSA MIS solution
- 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 Mx4, Meetings Management Maturity Measurement
- 5. Evolution of Travel Management Manager Focus Unstructured Travel Management 1985 > rebating Travel Consolidation Telephone & Paper Process 1990 > air deals possible Reduction in Travel Technology Growth 1995 > commission changes Strategic Sourcing Internet Technology 2000 > online sites GDS Content Questions Electronic Processing online tools, controls Process Cost Control
- 6. Current State of Travel Industry Poor Economic Environment 1. Reduced Business Travel Companies implementing new cost controls Conservative approach on travel Concerns about corporate profitability for 2009 2. Airline Difficulties High number of delays and poor service performance Understaffing of operations, maintenance issues, and passenger services Consolidation of airlines (DL + NW) Reduction in capacity
- 7. Current State of Travel Industry Window for Savings Opportunities 1. Tightening of policies Changing class of service for international travel Mandate for online booking Less travel for meetings Revising of travel entitlements / standard of travel 2. Stronger negotiating position Hotels hungry for business Airlines looking for loyal customers / providing discounts Car, limo, and other suppliers in need of new business
- 8. Current State of Travel Industry Window for Savings Opportunities 3. Reviewing processes Consolidation of agency services – global approach Service configuration changes Maximize online booking, minimize service fees Review of meetings management strategies 4. Changing traveler buying patterns Greater drive to preferred suppliers Encouraging shorter trips / more effective travel Stronger policy support and monitoring Better support from senior management
- 9. Benchmarking Travel Programs Strategy Policy TMC MIS Sourcing Payment Expense Reporting
- 10. Travel Management Corporate Components - Structure and Strategy - TMC Relationship - Travel Policy - Strategic Sourcing - Information management - Payment & Expense Reporting - Meetings and Group Travel
- 11. Travel Management Attributes of Corporate Programs - Travel manager and/or team - Manager is involved in all/most components - Agile, ability to change direction - Ongoing strategy analysis - Daily use of travel information - Routinely update senior management - Procurement driven
- 12. Best Practices Corporate Programs - Global travel manager / objectives - One TMC or minimized # globally - High online adoption, over 75% - Risk management tools implemented - Strong policy, flexible by business units - High % use of preferred suppliers - Monitoring of program through MIS - Corporate card for payment, over 85% - Electronic T&E system, 1-5 day process
- 13. Travel Management Government Components - Structure / Strategy - TMC Relationship - Travel Policy – FTR + - Strategic Sourcing - GSA - Information management - GSA - Payment & Expense Reporting
- 14. Travel Management Government Programs - Larger travel teams / few dedicated Travel Managers - Less involved in some components, or not at all - Mostly process oriented vs. strategic - Policy interpretation vs. policy setting - Minimal use of travel information
- 15. Travel Management Benchmarking Comparing Corporate to Government
- 16. Best Practices in Travel Management Government Programs Strengths - Strong travel policy direction through FTR - Structured process for travel booking - Implementation of online booking tools - ETravel - Negotiating leverage through GSA - Card used for travel payment - Electronic T&E expense systems - ETravel
- 17. Best Practices in Travel Management Government Programs Weaknesses - Lack of dedicated travel manager positions - Minimal objectives for travel management - Inconsistent support from senior management - Multiple TMCs with varied fees - Outdated internal policies / procedures - Inconsistent support of preferred supplier programs - Lack of travel data and utilization of MIS
- 18. Best Practices in Travel Management Enhancing the Program – Implementing Change - Establish defined travel manager staff positions - Create management objectives for travel program - Build awareness and support of senior management - Evaluate process change alternatives - More TMC consolidation - Maximize online booking - Revise / strengthen internal policies / procedures - Monitor use of preferred supplier programs - Establish procedures to review MIS monthly