BY Allyson Cross |

Business Travel Cost Savings: Part 1

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The account management program is a valuable part of Christopherson Business Travel’s unique value proposition.

When Christopherson’s business development team is awarded a new account, they include the account management team to assist in consulting each new customer on the importance of a managed travel program.

The account managers, also known as the client consultative services team, have developed a program that will not only help companies better understand the value of managed travel, but also provide programs to show cost savings, cost avoidance, and return on investment. I will be emphasizing these particular points in this post. In parts 2 and 3 I will touch on other cost saving measures such as vendor negotiations, creating an effective travel policy, and compliance with that policy.

Business Travel Cost Savings, Cost Avoidance, & ROI

Travel spend is often listed as one of the highest costs of a corporation’s expense portfolio. It is our job to help those companies manage a travel program that provides savings to counter the costs of maintaining such a program. Here is an example of how we, together with our partner Travel GPA, can do that for you:

  • We find specific travel savings opportunities for your company by selecting Key Performance Indicators (KPIs) to measure your corporate travel program.
  • We run “what-if” scenarios to analyze the impact of behavioral changes.
  • We explore the impact of shifting full-size and higher rental car reservations to intermediate-size vehicles.
  • We analyze the impact of shifting more expensive hotel nights to alternative, less expensive properties.
  • We determine whether online booking options will create the savings you require.

Upon working through this analysis process, we then provide a summary recommendation to your company. Here is a sample summary recommendation provided to one company which resulted in potential savings of more than $94,000:

  1. Shift 113 airline ticket purchases to 7 days or more in advance of travel – Savings $14,873
  2. Accept lowest offered fare on 245 transactions – Savings $30,221
  3. Shift 614 agent-assisted transactions to online transactions – Savings $11,665
  4. Shift 59 hotel bookings to the Upscale tier – Savings $7,100
  5. Shift 101 car rental bookings to Intermediate-size – Savings $3,716
  6. Cut airline ticket exchanges by 108 transactions – Savings $26,829

Total potential savings – $94,404

Savings recommendations are based on shifting 50% of current booking practices to better performace areas of that particular program. Percentages can be modfied based on the goals set by the company.

 

For a full business travel program analysis please contact our client consulting services team. And if you have any questions or points you’d like me to address in future posts regarding corporate travel managed programs, please respond in the comments section below.