Global Travel Set To Increase – managing your costs
Business travel spend looks set to grow according to the latest research carried out by Lockport Analytics on behalf of the Global Business Travel Association. They predict growth of 6% or more in 2018. Opinion is that this marks the end of a period of uncertainty and also indicates a renewed optimism by corporates, attributed to a number of positive developments in global markets.
This sounds like good news for business and an opportunity for growth and expansion. But as companies seek to expand into new territories and regions, they also naturally incur additional costs. If travel spend, employee booking procedures and expenses and are not well managed this can quickly become an area of spiralling, uncontrolled cost and an administrative nightmare.
All businesses are subject to the vagaries of political instability and have no control over what happens in UK manufacturing, emerging markets or foreign exchange. But by implementing robust processes to control and manage your operational costs, you will bring stability and visibility to your business and "clear the decks" so as to be poised to take advantage of opportunities as they arise.
Controlling Travel Spend PEPCO Services worked closely with a large corporate organisation to improve their travel processes, achieving a 15% saving on their annual spend in this category.
Our client had an annual travel spend in excess of £1.7 million. Whilst there was a policy in place for travel to be booked through just two TMC's (Travel Management companies) and 80% of bookings were being made online, we identified a number of areas for improvement.
After a thorough review of spend it was apparent that travelers were not always following procedure, for example bookings were being made through independent and group hotels. In addition, the business was gaining no commercial advantage from regularly flown airline routes to 3 specific destinations.
Expert review by travel specialist with over 25 years corporate travel experience across multiple markets.
Development of proposal to consolidate all travel within the group.
Adapted online booking system to include an updated company Travel Policy.
Negotiated contract with new supplier under clearly defined terms with reduced booking fees, reduced prices and increased service levels.
The Result Online bookings increased to 90% across the business following the engagement with the PEPCO travel expert. Crucially, commercial arrangements were also reviewed and revised with airlines and hotels to ensure our client receives aggregated savings going forward based on the volume of reservations being placed annually.
We were also able to secure additional soft benefits such as complimentary upgrades to airline lounges, thereby increasing the levels of service our clients' business travelers receive.
To complete our review we developed a crisis management procedure, just in case…
Working for you, and with you, we will review travel company charges, loyalty schemes, current benefits and pricing to ensure they meet your individual requirements as a business.
Our expert industry knowledge means we'll benchmark your travel programme against current industry best practice. And we will ensure you are left with a solution that delivers process improvement and supports cost control for your business today and going forward.