Corporate Travel ViewpointsJanuary 25, 2012
Will TateSenior Vice President
Management Alternatives, Inc.972-599-2833 [email protected]
Agenda
Corporate Travel Trends Globalization All Things Procurement
RFP Best Practices Service Level Agreements
Open Dialogue
Top 2012 Corporate Travel Mgmt Trends
Societal Trends1. Personalization2. Social Media3. Corporate Mobility4. New Travel Entrants
Travel Trends5. Fragmented Content6. Demand Management7. Meetings Management8. Hotel Contracting9. Airline Contracting10. Service Configurations11. Charge Card Fees
Personalization
Source: Google
Social Media
Corporate MobilityImmobile: Many Travel Programs Lack Control Over Devices, Apps
56% of Travel Managers said they were not involved in managing mobile devices, mobile software or telecom programs68% said they were not involved in purchasing mobile apps for travel“With a means of direct communication to travelers, suppliers can market products, float special offers and establish close customer relationships. Though beneficial in some ways, these activities can undermine managed travel programs “
August poll of 294 Travel Management Professionals conducted by
Procurement.Travel
New Travel Entrants
iTravel Patent
Acquired ITA Software
Blackberry Travel App
Fragmented Content
Demand ManagementPrice and Quantity (Frequency or
Consumption)
$100/Trip X 10 Trips = $1000 Spend
Reduce Price $70/Trip X 10 Trips = $700 Spend Reduce Quantity $100/Trip X 7 Trips = $700 Spend Reduce Both $70/Trip X 7 Trips = $490 Spend
Demand Management
DM Element Process ProcessDifficulty
10% Reduction of Internal Meetings
1. Purchase codes assigned
2. Soft stops
Easy
20% Reduction of Internal Meetings
1. Mgmt memo2. Internal
Benchmarking
Moderate
30% Reduction of Internal Meetings
1. Reduction of employees per meeting
2. VC alternatives
Difficult
50% Reduction of Internal Meetings
1. Full pre-approval2. Hard Stops
Difficult
Meetings Management
Data Collection Registration Contract
ManagementMeetings
ManagementTechnology Integration
Transient/Meeting
Integration
Hotel Contracting
Dynamic Pricing?
Death of LRA?
Ala Carte Pricing?Ancillary Services –Not Needed?Outsourced Providers
Multi Year?
Airline Contracting
Commission Reductions
Discounts by Fare Class
Removal of Fare Classes
Reduction of Discounts
Requirement of All Market Share
Charge Card Fees
Impact to TMCs?
Carrier’s charge Buyers
Buyer’s costs rise
Buyer’s question value
Buyer’s look for other options(Pay Pal, Air Plus, Others?)
Service Configurations
CTDs
On Sites
In Country
Call Center
Regional Call
Centers
Follow the Sun
Globalization
• Perceived vs Actual Needs
• Top 10 mistakes to Avoid
All Things Procurement
• Understanding Procurement
• TMC/Client Account Assessments
• Client TMC Sourcing
• How to Sell/Manage with Procurement
Open Dialogue
Corporate Travel ViewpointsJanuary 25, 2012
Will TateSenior Vice President
Management Alternatives, Inc.972-599-2833 [email protected]
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