Presentation on theme: "Creating a State Travel Program Get them where they need to go and save the state dollars!"— Presentation transcript:
Creating a State Travel Program Get them where they need to go and save the state dollars!
Today’s Purpose To gain the knowledge and tools need to create and establish a travel program. To cover the 4 main points of a travel program Who to involve in establishing a program What to ask for from preferred providers Other useful topics
Today’s Topics Why have a program The 4 Travel Program Points. Travel Policy Finance Considerations Travel Management Providers Preferred Providers
Why have a Program Can easily save your State money Provides savings, flexibility and security to your travelers. Provides data on where your travelers are going, (this is valuable information in negotiating even higher savings to your top markets) Travel is often scrutinized by the public, having a program and showing the savings counter acts the questions. Prevents fraud and abuse
The Four Program Points Travel Mgmt Provider Finance Preferred Providers Air, Car, Hotel Travel Policy
Complete State Support (Governors Office mandate helps) Straight forward and easy to understand Consider all the factors Be prepared for resistance Form a committee of various agencies to write the policy. Ask for input from everybody
Travel Policy Requirements Pre-trip Approval Mandated use of your contracts Authorization number for booking Required form of payment Exception process Post Reimbursement Procedures Other
Travel Policy Exceptions The Policy may not fit all agencies and will require exceptions May want to grant a blanket exemption or require approval for each exception. –Prisoner Transport (Blanket Exception) –Flight times won’t work (Approval Request) –Other
Travel Policy Considerations State Laws may govern policy Industry changes affect policy States should review their policy each year and revise travel policy where changes needed.
Finance Points to consider Involve Finance Division Partner up with other public entities (e.g. State and Higher Education) Will you use a Purchasing Card or a Central Travel Summary (CTS) account. Also known as “Ghost Cards”
Finance Points to consider cont. Seek rebate opportunities Will other charges also occur on these accounts. One card system vs. multiple card system Personal Liability vs. State Liability May require to provide Insurance Coverage
Travel Management Provider Select a single Travel Management Provider (TMP) with an RFP. (Larger States may require more TMP’s – keep the number limited!) Empower the TMP to enforce your travel policy Require TMP to provide on-line and traditional bookings (phone bookings) Require TMP to reconcile credit accounts and resolve problems as they occur. Require to provide training to Agencies
Advantages of One Benefits of using just one Credit Card and Travel Management Provider include: Better Compliance Control Management Reports Reconciliation of Accounts One Stop Shopping for travelers Easier Problem Resolution
Preferred Providers Airlines Car Rentals Hotels
Airlines Use a mix of capacity controlled and un- restricted last minute fares (Y-Class) Limit Capacity Control to upper buckets (Top ½ of availability) Consider Frequency of flights, non-stops and departure / arrival times. Bid markets with at least 25 or more passengers per year (Don’t ask for every city pair) Prohibit fare matching by airlines Single TMP and Form of Payments, Compliance and Authorization Control (Airline Tri-Fecta)
Airline Tri-Fecta Single Form of Payment Single Travel Mgmt Provider Authorization / Compliance Control Multiple sources viewed as risky by airlines = higher prices
Benefits of Contracted Fares Fully Refundable Fares Last Minute Bookings No Change Fees Unrestricted Fares Allowed for employee use, persons in care or custody in State, persons representing the State, job interview candidates where State is paying the fare.
May require Liability and LDW Insurance to be included with vehicle rental Require multiple forms of payment (Direct Bill and Credit Cards) Prefer Airport Locations Ask for multiple car types Round Trip Pricing and One Way Mileage Charges Consider Age restrictions (18, 21 & 24 years) Waive airport fees and local taxes if possible
Hotel Program RFP or RFQ Process Discounts off of Per-Diems No Black Out Dates Allow for deviations from mandated use (e.g. Conference locations, mission of Agency) Allow for capacity control of rooms, up to 85% = Discount, last minute = Per-Diem) Multiple forms of Payment (Direct Bill and Credit Cards)
Hotel Program Continued Other features and charges (shuttles, breakfasts, computer hookups, phone charges) Consider Property Locations Franchises locations usually offer better rates than chains Allow for higher than per-diem rate if they offer breakfast (higher rate should be equivalent to breakfast per-diem rate)
Travel Program Considerations You will face resistance, be prepared to show the expected savings. Once implemented, track and publish the savings. Create a State Travel website Borrow ideas and contracts from other states. Start with airline contracts and then expand to cars and hotels. Have fun creating the program, you will enjoy the rewards in the end.