1. Rick K. Wakida, CTE, CCTE, GLP Global Travel and Card Manager August 12, 2014

2. Managed Travel Program Essentials  Overview  Business Travel  Leisure Travel  Leisure Travel versus Business Travel  Managed Program Elements  Program Goals  Program Foundations  Program Management  Questions and Answers

3. The Travel Manager as Ringmaster Travel Management Expense Reporting Corporate Cards

4. Business Travel  Second largest controllable expense  Non-core business  Management perspective  High profile  Political  Financial implications  Traveler perspective  Personal  Emotional  Perk/Burden

5. Leisure Travel  Planned in advance  Budgeted  Value driven  Personal preferences  Multiple travelers

6. Leisure versus Business Travel How is travel booked? How are suppliers selected? What form(s) of payment are used? What elements apply only to business travel?  Travel Policy  Travel risk management  Expense reporting  Management reporting What is the purpose of Business Travel?

8. Managed Program Elements  Travel Policy  Designated booking channels  Preferred supplier agreements  Corporate forms of payment  Management reporting  Travel Manager/Corporate Travel department

9. Program Goals What determines the goals of a travel program?  Senior management objectives  Company culture What are the goals of a travel program?  Traveler safety and security  Traveler convenience  Cost savings/avoidance

10. Program Foundations What are the foundations of a travel program?  Travel Policy  Corporate cards  TMC/OBT  MIS/Data Which data source has the greatest direct effect on the organization? How do these foundations support the program goals?

11. Program Management  Supplier negotiations  Airfares  Hotel negotiations  Car rental coverages  Travel risk management  Travel metrics

13. Airfares Have you ever heard “The fare went up?” Yield Management 101  Assume three fare classes X, Y and Z  Fares are $1,000; $700 and $400  Airline allocates number of seats per flight  100 seats – 50 @ $1,000; 30 @ $700; 20 @ $300  Traveler books 21 days in advance - $300 fare  Traveler books 14 days in advance - $700 fare  Traveler books 3 days in advance - $1,000 fare

14. Hotel Negotiations  Negotiated rate with the Clift Hotel: $120, LRA  End of January average rate report for the Clift: $176 Q: How could this be? A1: Revenue Management  27 room nights @ $120 = $3,240  39 room nights @ $165 = $6,435  76 room nights @ $180 = $13,680  58 room nights @ $205 = $11,890 A2: Definition of Last Room Availability

15. Car Rental Coverages  Compulsory coverages  Collision  Liability  Other optional coverages  Personal Accident/Effects  Supplemental Liability  Super CDW

16. Travel Risk Management Travel Risks  9/11, London Transit bombings  SARS, Avian Flu  Eyjafjallajökull eruption, Tōhoku earthquake & tsunami  “Train jumps tracks, 32 hurt at Chicago's O'Hare airport”  MH 17  MH 370 How does an employer’s Duty of Care impact the travel program?

17. Travel Metrics  Average Ticket Price (ATP)  Cost Per Mile (CPM)  Average Hotel rate  Average Car Rental rate  OBT adoption  Top City-Pairs  Top Hotel/Car Rental Cities  Advance Purchase analysis  Lost/Missed Savings

18. OBT Adoption rate How do you calculate the OBT adoption rate?  Based on total transactions  OBT transactions – 200  Total transactions – 500  OBT adoption rate – 40%  Based on eligible transactions  OBT transactions - 200  Domestic transactions (eligible) – 250  International transactions (ineligible) – 250  OBT adoption rate – 80%