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The recession is forcing new-fangled ideas and processes to be implemented to get the most out of travel programmes. Gillian Upton lists all the quick wins to improve your bottom line, with the help of The Co-operative Travel Management.

Going back to basics in times of hardship is generally good advice and all the principles of good travel management will still hold true. Taking time out to review travel spend is another good measure as spend can creep up on you and items you thought were too small can now be managed. “We often find within smaller businesses that travel spend has increased in recent years through growth, expansion or acquisition,” says Paula Cullen, National Director of Sales at The Co-operative Travel Management. “We have recognised that in the current climate there is a real need to be monitoring and managing this spend.”

Cullen cites that the company recently negotiated an airline deal for a small electronics firm. “They have a spend of £40,000 on their key route and we achieved a 22% discounted fare.”
Similarly, Cullen recently negotiated a local car rental deal with a regional food manufacturer who spends £30,000 on this part of their travel. “We achieved a ten per cent discount,” says Cullen. Spurred on by these examples, Cullen goes back to basics with her top ten tips for recession-busting action.

Step 1: Collate travel data. It’s said time and time again but good MI is the basis of any significant cost savings. Initially this may be a difficult task to gather the data from various sources say, a number of TMCs, company ledger and credit card data, but it is absolutely crucial to get a handle on the spend from the outset. “To control and reduce travel spend you first need to know what it is” emphasises Cullen.

Step 2: Seek senior or board level support. It’s simple; if management are not behind you, you won’t get anywhere. The ability to mandate your travel programme is vital and therefore senior level support is required to do this. “In our experience if you are looking to deliver cost savings to your company it is unlikely that an FD or procurement head will not support your cause,” says Cullen optimistically. Additionally, it is becoming increasingly important at board level to be able to report the company’s carbon footprint, and a true picture of this will only be achievable if your programme is mandated.

Step 3: Partner with a good agent. It is essential that you have a central booking point, for the ease of both monitoring data and measuring savings delivered by your programme. Equally as important in the current climate is the need to fulfil your duty of care commitment to your employees, so a TMC can also help you locate your travelling population at all times. Speak to a number of agents and ask them what value they propose to add to your travel programme and what support you will receive to achieve the goals identified by your business. When you have selected a partner this needs to be mandated within your business, as leakage will lead to inaccuracies in both your spend and carbon data and leave your company liable should something happen to a traveller and you are unaware of their whereabouts.

Step 4: Review your travel spend to identify opportunity. Many companies are unaware of the vast array of programmes that have been created by airlines, hotels and many other industry suppliers to enable companies to collect points and mileage in return for business expenditure and these schemes will generally give a 10-15 per cent reduction in spend with the relevant suppliers, in the form of free flights or room nights.
“These are an excellent way of reducing spend on a smaller budget,” says Cullen. Many suppliers are lowering their historical thresholds for corporate deals and rates in an effort to encourage new business, and your agent will explore these opportunities for you. “In a recession, it is worth challenging your previous assumptions… if you don’t ask you don’t get,” believes Cullen.

Step 5: Review your internal processes.
A good proportion of travel-related costs can be hidden in the way in which you authorise and pay for travel. “A cumbersome authorisation process can mean bookers and travellers miss out on special offers and rates if they don’t achieve a swift sign-off,” says Cullen. Additional savings can be realised in a review of payment processes. Take advantage of the SME specific card payment products and streamline your agents’ invoicing process with your own accounting system.

Step 6: Create a travel policy. If you are taking advantage of any supplier opportunities then you must create a company travel policy that lists preferred suppliers and mandates their use. Strongly recommending their use is no longer an option as mandation is the only way to maximise on any cost saving initiatives identified. Your agent/TMC should be able to offer a policy template that matches your industry sector and spend to help you create a bespoke policy that will drive cost savings for your business.
This policy may be as simple as issuing a ‘best on the day’ policy for air fares, directing travellers to a small number of preferred hotels and mandating the pre-booking of rail fares to ensure advance purchase discounts are secured.
Advise your agent/TMC of your policy and any potential exceptions and they will police this for you on your behalf.
A well-driven policy will provide significant savings for the business “of anywhere between 20 to 40 per cent, depending on your business mix and ability to change traveller behaviour,” says Cullen.

Step 7: Communicate regularly with your booking and travelling population. Easy access to your policy is key as your employees will not be aware of it unless it is easy to find and navigate round. You can upload the policy onto the company intranet and this then becomes an excellent tool to not only communicate your policy but also to sell its benefits to the business. Invite regular feedback from travellers and consider their comments and suggestions and they will be far more likely to support your programme. A good agent/TMC can assist in ‘selling-in’ the benefits of your programme, their service and the value they can add to your business.

Step 8: Review your suitability for an online booking solution. If you have enough point to point business you have to consider an online booking solution. “Many companies with a smaller budget have a high degree of domestic travel, and converting rail travel online is often an excellent way to start to encourage your business culture towards online,” suggests Cullen. “It will instantly achieve reduced booking fees and also far greater savings through the purchase of advance fares.” Consider the purchase of reasonably priced rail ticketing machines as these will also assist in ensuring your travellers pre-book. Your agent/TMC will assist in the implementation of an online booking solution and typically, fees alone can be reduced by up to 50 per cent.

Step 9: Select a suite of Management Information to measure your success. It is crucial that you receive regular and accurate MI. This will enable you to report the success of your programme to the stakeholders in your business. “The production of regular savings and carbon reporting will assist you in achieving the goals you identified at the outset and regular reviews will identify opportunities for your programme,” explains Cullen.

Step 10: Review your travel programme regularly. In most cases your spend pattern will change depending on the demands of your business, so it is vital that you review data with your agent on a regular basis and develop a method of continuous improvement. “Changes to the economic climate will also influence the suitability of certain suppliers or solutions you have selected,” points out Cullen, “so your programme should be constantly evolving in line with our highly dynamic business travel market.”

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