Streamlining Travel Management Programmes: Benefits of Using One Supplier

---

Overview

Selective Travel Management (STM) were appointed to manage the international expenditure for a Higher Education customer. This client split their expenditure into domestic and international and appointed another Travel Management Company (TMC) to manage the domestic spend. Total travel expenditure was estimated to be £8m per annum.

Objectives

The client elected to consolidate their travel contract and formally appointed STM to manage the entire contract (both domestic and international). This included looking at procedures to simplify the booking process. 

Challenges

Using two TMCs caused multiple issues for the client including: 

• When a Traveller travelled domestically and then connected with an international flight, which TMC was used?
• The client had to hold review meetings with both TMCs, doubling the time to manage their travel contract.
• Two points of contacts for their travel bookers.
• Two usernames and login credentials were required to access two different self-booking platforms, which resulted in users having to attend two different training sessions.
• With differing emergency protocols, travellers were confused as to whom to contact for out of hours. 
• They had no consolidated spend, with each TMC providing reports in differing formats and containing different elements.
• Invoicing was processed differently between the two TMCs and no finance integration could take place.
• As much as the two TMCs were mandated, there was a large leakage of expenditure off contract.

Solution

Through a consultative approach with the client, we conducted a full integration with their finance system, resulting in the removal of the prior approval process. This resulted in a streamlined booking process and all bookings being instantaneously approved. Daily feeds of cost centres are provided by the client, which are automatically and instantaneously uploaded into our system, allowing their travellers to select a cost centre to complete a booking. A full training programme, which incorporated both online and offline booking processes was undertaken by STM and all users of the system were effectively trained over a period of approximately 3 months. By consolidating expenditure with one TMC, simplifying the processes to book travel, and implementing more stringent internal controls, the off contract spend has been greatly reduced with over 98% off all spend now booked through STM. The overall contract is now worth circa £15m per annum.

---

Hotel Savings: Creating Cost Savings on Global Hotel Bookings

---

Overview

Selective Travel Management (STM) have been managing the travel contract for this client for a number of years. The client had previously travelled to a particular city within China, however due to a new project, travel was expected to exponentially grow to the city.

Objectives

The client wanted to reduce expenditure to this key location.

Challenges

Language and time zone was the only real barrier, but one that was easy to overcome for STM. 

Solution

We analysed our data and verified that the client had booked over 200 room nights within the city over the previous 12 months. This was expected to exceed 1,000 room nights over the coming 12 months. The data was further analysed and we conducted a request for proposal (RFP) with the majority of properties, aiming to create a preferred list of venues within the city.   Through engaging with the client’s employees based within the city, we were able to translate our RFP template into Mandarin and sent this to 15 different properties. 9 properties returned the RFP within the two-week timeframe and we selected three 4-star properties and two 5-star hotels. These five properties became the preferred list of accommodation, and all subsequent stays were booked in one of these five venues. The average cost of a room has fallen by circa £55 per night, which has resulted in a saving of £55,000 per annum.

---

Switching From Offline to Online: An Easy and Cost-Effective Process

---

Overview

This client had been engaged with Selective Travel Management (STM) for 4 years, however the majority of transactions were conducted by our offline booking team. The client had a fully staffed internal travel booking team that managed the bookings for all their employees.

Objectives

The client wanted to redeploy their internal travel booking team into other areas within their business, thereby reducing the salary cost attributed to booking travel. The client also wanted to give ownership back to the travellers, making them responsible for actioning their own bookings.

Challenges

The biggest challenge was the reluctance to change the booking process from the traveller’s perspective. The travel policy was simultaneously changed at the same time as the booking practice. The travel booking team was relatively happy at being redeployed elsewhere within the business. 

Solution

Through a consultative approach with the client, STM provided a full self-booking platform for the client. This incorporated a full online approval process for bookings that fell outside of the client’s travel policy.  A full marketing campaign and online training sessions were launched to coincide with the changes in booking practice. The initial training session was recorded, allowing users who could not attend one of the sessions to watch the demonstration at a time that suited them. Regular training was provided by STM over the first month, with subsequent training provided on an “as required" basis. These ad-hoc training sessions would capture new starts etc.   The client has now driven an 89% online adoption rate, which has resulted in savings versus paying the higher offline booking fees. However, the biggest saving this client has made is in the reduction in costs attributed to their internal travel booking team, which has now become defunct with all travellers responsible for booking their own travel. 

---