cost containment presentation
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Copyright © 2008 CWT 1
Travel Management Program Optimization and Cost Containment
Molly McCue Director Business Development, West Region
Carlson Wagonlit Travel
Copyright © 2008 CWT 2
Association of Corporate Travel Executives (ACTE)
Travel Spend Survey
71% plan to spend less on travel in 2009
79% see cost-cutting as their top business travel concern
61% said they had approached vendors to renegotiate contracts
What the Market is Saying….
Copyright © 2008 CWT 3Copyright © 2009 CWT 3
Improving traveler compliance
Optimizing hotel spend
Driving air and ground transportation savings
Optimizing simple bookings (SBT)
Developing key performance indicators
Tackling meetings and events
Further consolidating the travel program
Addressing safety and security needs
66%
59%
59%
56%
46%
39%
36%
20%
Tough times present an opportunity to demonstrate the value of an effectively managed travel program
Source: CWT Travel Management Institute global survey of 178 travel managers
October 2008
Which of the following areas will become a higher priority in your 2009 travel program, compared to 2008?
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Opportunities to optimize and drive savings abound in all areas of travel management
Program
Optimization
Traveler & Transaction
Services
Traveler & Transaction Services
Utilize an online booking tool and travel counselors
Non-complex trips should be booked online
Costs less
Visual guilt when all fares are visible
Use travel counselors for complex bookings,
and executive/VIP services
Both methods can enforce travel policy
Counselor scripts
Messaging on booking tool
Reporting on all reservations, whether
made online or offline
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Program Optimization: Air, Hotel & Ground
Collect spend data & examine contracts
Identify sourcing and
traveler behavior saving
opportunities
Build an effective sourcing program and adjust travel
policy
Find the right balance between negotiated fares
and available options while
supporting compliance
Evaluate strategy &
goals regularly
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Source: CWT Travel Management Institute
Program Optimization: Compliance
Companies can save 20% of T&E spend by:
Improving their travel policy
Increasing traveler compliance
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Program Optimization: Performance Measurement
Establish business goals & identify
performance drivers
Regularly monitor metrics against
program goals, peers & market trends
Communicate results through
dashboards & take corrective actions
Define tailored metrics and action
plan
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Meetings and Events
Accounts for 30-35% of overall travel spend, yet only about 50% of companies are managing
Collecting data on existing spend is a challenge
Survey internally, especially administrative personnel
Analyze credit card data
Proving ROI never more critical
Today, perception is reality
Destination analysis
Measurement of results
On Line Booking vs. Travel Management CompanyIn tough times, travelers may be tempted to book outside the program if they find rates appearing to be cheaper online
Bad idea for many reasons:
Loss of volume data
Puts company at risk of not meeting market share agreements (air)
Lose negotiating leverage to maintain/increase discounts with all suppliers
No quality assurance for suppliers used
Hotel locations, etc.
No ability to track travelers in an emergency
Critical liability for companies
Terms may be restrictive and/or result in unforeseen fees
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Copyright © 2008 CWT 11
Program Optimization:Key Cost Savings Initiatives
Optimize design of companytravel policy
Increase awareness through communication to travelers
Enforce booking processes& tools that encourage compliance
Monitor compliancethrough reports to management
Build an effective sourcing program with key suppliers – evaluate regularly
Engage senior management
Copyright © 2008 CWT 12
Thank you.
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