1. Gillespie’s Guide to Travel Procurement 1 Travel Procurement 411 NBTA CCTE Course Handouts, Part 2 August 23 rd, 2009 San Diego

2. Gillespie’s Guide to Travel Procurement Presented by Scott Gillespie 2 (O) +1 440 248 4111 (Eastern Time Zone) Scott.gillespie2008@gmail.com Gillespie’s Guide to Travel Procurement http://gillespie411.wordpress.com LinkedIn Profile http://www.linkedin.com/in/scottgillespie2008

3. Gillespie’s Guide to Travel Procurement key success factors 3 Travel Agency Staffing Stakeholder Management Travel Policy Analytics

4. Gillespie’s Guide to Travel Procurement Shop 4 Book Travel ReportAdvise is critical your travel management company

5. Gillespie’s Guide to Travel Procurement 5 expertise quality accurate, timely, helpful availability response time, confirmations flexibility data consulting booking, expense tools accurate, timely, accessible effective fits your needs

6. Gillespie’s Guide to Travel Procurement Shop 6 BookTravel Claim Reimb. travel policy key elements of a

7. Gillespie’s Guide to Travel Procurement 7 consequences control card, agency, suppliers quality cabins, beds, cars time cost claims cabins, connections; flight windows guides or per diems, lowest logical fares receipts, non-reimbursables

8. Gillespie’s Guide to Travel Procurement 8 How much share can you really move?

9. Gillespie’s Guide to Travel Procurement 9 know your strength true

10. Gillespie’s Guide to Travel Procurement Travel Policy Discussion Which policy elements matter most to suppliers? How does a new supplier gauge the real strength of your travel policy? How well does your senior management understand your travel policy? What are clever ways they support it? 10

11. Gillespie’s Guide to Travel Procurement 11 intimidating exception approval path

12. Gillespie’s Guide to Travel Procurement 12

13. Gillespie’s Guide to Travel Procurement 13 Senior Management Line Managers Procurement Finance HR Travelers Airlines Hotels Rental Cars, Limos Payment Providers GDSs and SBTs Travel Agencies Data Suppliers lots of stakeholders

14. Gillespie’s Guide to Travel Procurement 14 relationship project and management skills

15. Gillespie’s Guide to Travel Procurement Supplier Relationship Discussion How do you know if you have a good relationship? What’s the difference between an OK and a great relationship? How can you introduce the FU factor into a key supplier relationship? 15

16. Gillespie’s Guide to Travel Procurement 16 data travel

17. Gillespie’s Guide to Travel Procurement 17 ingredients right

18. Gillespie’s Guide to Travel Procurement 18

19. Gillespie’s Guide to Travel Procurement 19 explanations or choices credible and meaningful

20. Gillespie’s Guide to Travel Procurement Airline Sourcing 101 Discounts in return for market share – Airlines watch market share closely Discounts depend on – Scheduled competitive capacity – Fare mix (proxy for profit margins) – Ability to move market share – Lastly, amount of spend 20

21. Gillespie’s Guide to Travel Procurement Continental Houston Airline Supplier Options Under a Weak Travel Policy Newark

22. Gillespie’s Guide to Travel Procurement Continental Newark Houston Airline Supplier Options Under a Strong Travel Policy Chicago Detroit Memphis D.C. Atlanta Delta American Northwest United

23. Gillespie’s Guide to Travel Procurement 23 don’t over-promise

24. Gillespie’s Guide to Travel Procurement 24 scenario modeling

25. Gillespie’s Guide to Travel Procurement 25 Projected Loss Projected Savings scenario results

26. Gillespie’s Guide to Travel Procurement 26 Projected Loss Projected Savings Best Worst (No Change) Current mix Sell B, then A Sell A Required Change High Airline Sourcing Map Sell A and B Sell B and C

27. Gillespie’s Guide to Travel Procurement Airline Sourcing Best Practices 1.Consolidated, scrubbed TMC data 2.Pre-RFP strategy study – Airline sourcing map 3.Turbo sourcing for mature programs 4.Bid modeling 5.Goal integrity – no overlaps 6.Respectful relationships 7.Supplier conditioning, if necessary 27

28. Gillespie’s Guide to Travel Procurement Hotel Sourcing 101 Lower room rates for more room nights – Data is hard to track, so relationships matter Can negotiate at chain or property levels Rates depend on – Nearby competitor hotels – Annual room night volume – Relationships (direct, or via TMC) – Ability to move room nights 28

29. London Hotel Usage

30. Gillespie’s Guide to Travel Procurement Slide 1 detail (Arial 44) From Hotel Mapping…

31. Gillespie’s Guide to Travel Procurement Slide 1 detail (Arial 44) To Client-specific Hotel Clusters

32. Gillespie’s Guide to Travel Procurement Slide 1 detail (Arial 44) Including No-Stay Hotels

33. Details of Cluster No. 4 56 % Compliance

34. Which Chain is Best?

35. Gillespie’s Guide to Travel Procurement Local vs. Chain Negotiations 35

36. Gillespie’s Guide to Travel Procurement Cluster Benefits 1.Actionable Compliance Insights 2.Realistic Savings Targets 3.Smart Bid Lists 4.Relevant Rate Benchmarks 5.Sophisticated Negotiations Client-specific Hotel Clusters

37. Gillespie’s Guide to Travel Procurement Hotel Sourcing Best Practices Consolidated, scrubbed data from TMCs and credit cards Pre-RFP cluster analytics – Chain and brand capacities – Local competitive markets – Smart bid list Quick, credible negotiations Persistent Implementation 37