Value of Travel Management Becoming a Strategic Player

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Value of Travel ManagementBecoming a Strategic
Player

• CHICAGO BTA ROUNDTABLE
• JULY 21, 2009

The expressed and written views outlined in the
enclosed materials do not necessarily reflect the
views of NBTA, the NBTA Foundation, its staff, or
board members.
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Team Members

• Barbara Campbell, Dr Pepper Snapple Group
• Brian Robertson, Vision 2000 Travel Group
• David DiPietro, Baxter Healthcare
• Donna Kelliher, Dominion
• Gary Polito, Bose Corporation
• Kevin Maguire, University of Texas at Austin
• Lois Raffel, AchieveGlobal
• Rosemary Utesch
• Scott Sward, GE Security Inc

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Becoming a Strategic Player

• Is your goal to transition your role from a
  service provider to a strategic player within
  your organization but unsure of the next steps?
• Our tool kit of templates and checklists will
  help you
• Chart your progress
• Establish meaningful metrics and benchmarks
• Create actionable communications plans

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Corporate Travel Strategy Snapshot
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Introduction

• Companies are increasingly working to maximize
  the value of the organization and in so doing,
  the wealth of its shareholders.
• Faced with tough market competition and
  increasing pressures from shareholders, companies
  are being forced to examine the economics of all
  business activities.
• This entails understanding not only the
  profitability of core revenue generating
  operations, but also the value of organizational
  support services.

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Objectives

• Define the travel management function.
• Identify the gaps of what companies want and what
  travel management can provide.
• Identify a set of metrics/ measurement tools.
• Aligning travel management goals with strategic
  corporate objectives.

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What Is Travel Management?

• Travel management is the practice of
  professionally managing a companys
  travel-related business needs in the most
  efficient and cost effective manner. This should
  be aligned with the company culture, policies and
  procedures.

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Future Role

• Travel managers can create a corporate resource
  center of knowledge and tools that assists line
  managers to optimize their use of travel
  resources.
• The real question is not how much the company
  saves on its travel, but rather how much benefit
  it receives in return.

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Behavioral Change Implemented
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SURVEY FINDINGS
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While 62 of Executives and Travel Managers see
travel management as operational/tactical, at
least 25 of respondents in both categories saw
function as being strategic.
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and over 75 of both categories believed travel
management COULD become strategic.
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Since over 80 of executives believe their firms
need to pay closer attention to travel spend, the
opportunity to become more strategic is more
possible than ever.
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Below are some of the key areas where strategic
value can be delivered based on what respondents
felt were MOST important
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Executives tend to rate travel management as
being less of a strength than travel managers-
thus opening another area of potential
improvement.
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When executives scoring of the travel functions
ability to perform risk management is even higher
overall than travel managers own opinions, there
is still considerable room for improvement.
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Value Creation

• We know you understand whats going on with
  travel otherwise you would not be working for
  us. Your job is to help management understand
  what your DATA represents, what actions should be
  taken and what methods of action will drive the
  fastest and most sustainable results.
• Perhaps the greatest challenge to travel
  professionals who want to add/enhance strategic
  value will be revamping program metrics, data
  collection methods and align their programs with
  corporate goals to measure internal success.

NB NBTA Foundation GLP Program LA July 2008
Convention Presentation Personal Interview
Findings
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Value Creation

• The ability to communicate metrics upward and
  across the organization are critical. Meaningful
  comparisons include not only looking at spend and
  compliance data YOY, but also evaluate benchmark
  targets between industries and competitors.
• Customer satisfaction and supplier performance
  scorecards should be executed on schedule to
  ensure all issues are being addressed, ideas and
  recommendations are being brought forward and
  strategies are being aligned with the rapidly
  changing travel landscape.
• We cannot accept multiple platforms of data that
  do not tie together or represent the companys
  true financial spend. We must find ways to
  aggregate data into meaningful comparisons and
  actionable plans.

NBTA Foundation GLP Program LA July 2008
Convention Presentation Personal Interview
Findings
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Value Creation

• The Travel Function is looked at more
  strategically or at least more operationally
  critical today than it was even five years ago.
• Strategic programs find a way to focus less on
  satisfying a travel need and more on educating
  and guiding employees toward the most effective
  means to accomplish a business goal.
• Driving culture change, aligning program targets
  with over-arching business goals and providing
  leadership with ACTIONABLE data and
  recommendations will become more important than
  even technical travel knowledge for travel
  managers.
• These skills should assist a company to build a
  reputation as a place people want to work,
  have positive influence on a firms ability to
  recruit and retain employees, and drive a
  sustainable competitive advantage over its
  competition that is hard to reproduce.

NBTA Foundation GLP Program LA July 2008
Convention Presentation Personal Interview
Findings
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REPORT SAMPLES
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T E Category Management

• Air Program- Carrier Selection- Frequent Flyer
  Programs- Fee ManagementBooking
  Practices- Advance Purchase - Non
  Refundable/Refundable
• Hotel Programs- Preferred Program
  Model- Agreement Commitments- Market
  Tiers- Rate Loading/Audits- Upgrades- Amenities
  (WiFi, Breakfast)- Business Services

• Ground Services - Refueling- Fuel
  Surcharges- Insurance Coverage- Amenities
  Navigation- Parking
• Meeting Management - Venue Options - Webcast/Vid
  eo Conference- Contract Terms
  Conditions- Food Beverage

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Sample Key Performance Indicators

• Airline Spend
• Preferred Supplier Bookings
• Cost Per Mile
• Average Segment Price
• Advance Ticket Purchase
• Nonrefundable vs Refundable Tickets
• Rebate tracking

• Hotel / Car
• Preferred Supplier Bookings
• Cost per Night or Rental
• Average Night/ Daily Rate
• Use of Percentage of Agency Bookings
• Agency
• Cost per Transaction
• Online Bookings vs. Traditional

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Travel Report Sample
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Dashboard Report Sample
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Service Level Agreement Report Sample

• Telephone Service
• Answer Speed, Call Backs
• Customer Service
• Traveler, VIP, Complaint per Trx Ratio
• Customer Service Response Time
• w/in 24 hours, 3 days, Account Management
• Savings
• Air, Car Hotel
• Special Projects

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SLA Report Sample
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KPI Report Sample
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iBank Analytics
Quarter 1 Average Ticket Price Comparison Year to
Year
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iBank Analytics
Rolling Quarter Air Spend Total Spend, Total
Tickets and Average Ticket Price
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iBank Analytics
International Average Ticket Price Comparison
Miles Flown Quarter 1 Comparison Year over Year
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iBank Analytics
International Average Ticket Price Class of
Service Flown Quarter 1 Comparison Year over Year
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iBank Analytics
Top 5 Travelers flying First Class Out of
Policy Quarter 1 Comparison Year over Year
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Communication Plan

• Dont wait for them to ask - be proactive!
• Work with management to define reporting metrics
• Make your presentation at regular intervals
• Annually
• Semi-annually
• Quarterly
• Departmental Staff Meetings
• This is your opportunity to discuss the value and
  the benefits of having a managed travel program

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CommunicationCompany ? Traveler ? Traveler

• Travel Policy
• Intranet/Portals
• New Hire Orientation
• Electronic Training Systems
• Corporate Newsletters Instant News
• TMC Booking Tool
• Networking user-generated content/ratings
• Social Networking

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C-Level Reporting Points

• Dashboard (one page of data)
• Frequency Quarterly
• Business Unit Roll-Up
• YOY Trending
• Projections/Action Items
• Travel Sector Focus
• Timing is Everything

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Corporate Travelers Who are they?
HASSLE
CHANGE
Adventure
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Traveler Supplier Compliance

• Measure Define metrics around performance goals
  and expectations. You cannot control what you
  cannot measure.
• Monitor Develop avenues to monitor program
  compliance (dashboards, reports, expense
  processors, internal external audits). Be
  careful not to assume non-compliance without
  supporting documentation.
• Manage Regularly communicate with travelers,
  suppliers and management teams to reinforce
  policy objectives. Apply consequences around
  non-compliance and showcase strong compliance.
  A little competition goes a long way.

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The Six Sigma Process
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Hotel Program ComplianceSelect Markets
Q208 Overall Program Compliance 89
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Six Sigma Project Key Findings

• Increase collaboration with operating groups on
  preferred property selection process
• Defects significantly higher in non-agency hotel
  bookings confirmed outside preferred program.
  Gap 93 vs. 105-140
• Reservation booked rate and LRA rate disparity,
  point of sale SOP adjustments.
• Reservation booked rate, LRA rate, and expense
  data rate disparity

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Policy Enforcement

• Methods Messengers- Travel Manager- Travel
  Management Company- Accounting Finance
  Expense Processing- Technology OLBT- Direct
  Supervision
• Managements Role
• Consequences
• Communication

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Traveler Opinions Feedback

• Frequency and Accessibility
• Tools- User-generated- Intranet- Surveys- Indu
  stry Research/Trends
• Feedback Response Action

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Technology Focus Areas

• People, Process, Performance
• TE Spend Management
• Data Management Reporting
• Dashboards
• Performance Metrics/KPIs
• Trend Monitoring Analysis, YOY
• Consulting Services (All Sectors)

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Turn Over The Stones

• Innovate
• Challenge Conventional Wisdom
• Ensure Value Creation
• Network/Relationships/Collaborate
• Wide Lens View
• Always Consider Unintended Consequence
• Ponder Failures, Find Success

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Kellihers Eight Ball

• Ask Again Later
• Better Not Tell You Now
• Without A Doubt
• Yes Definitely
• Concentrate Ask Again
• Very Doubtful
• You May Rely On It

• It is Decidedly So
• Cannot Predict Now
• As I See it, Yes
• My Reply Is No
• It Is Certain
• My Sources Say No
• Outlook Good

Reply Hazy, Try Again
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Life is like a snowball. The important thing Is
finding wet snow and a really long
hill. -Warren Buffett
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Questions Discussion