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Corporate Travel Viewpoints January 25, 2012 Will Tate Senior Vice President Management Alternatives, Inc. 972-599-2833

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Presentation on theme: "Corporate Travel Viewpoints January 25, 2012 Will Tate Senior Vice President Management Alternatives, Inc. 972-599-2833"— Presentation transcript:

1 Corporate Travel Viewpoints January 25, 2012 Will Tate Senior Vice President Management Alternatives, Inc. 972-599-2833 willtate@manage-alt.com

2 Agenda Corporate Travel Trends Corporate Travel Trends Globalization Globalization All Things Procurement All Things Procurement RFP Best Practices RFP Best Practices Service Level Agreements Service Level Agreements Open Dialogue Open Dialogue

3 Top 2012 Corporate Travel Mgmt Trends Societal Trends 1. Personalization 2. Social Media 3. Corporate Mobility 4. New Travel Entrants Travel Trends 5. Fragmented Content 6. Demand Management 7. Meetings Management 8. Hotel Contracting 9. Airline Contracting 10. Service Configurations 11. Charge Card Fees

4 Personalization Source: Google

5 Social Media

6 Corporate Mobility Immobile: Many Travel Programs Lack Control Over Devices, Apps 56% of Travel Managers said they were not involved in managing mobile devices, mobile software or telecom programs 56% of Travel Managers said they were not involved in managing mobile devices, mobile software or telecom programs 68% said they were not involved in purchasing mobile apps for travel 68% said they were not involved in purchasing mobile apps for travel “With a means of direct communication to travelers, suppliers can market products, float special offers and establish close customer relationships. Though beneficial in some ways, these activities can undermine managed travel programs “ “With a means of direct communication to travelers, suppliers can market products, float special offers and establish close customer relationships. Though beneficial in some ways, these activities can undermine managed travel programs “ August poll of 294 Travel Management Professionals conducted by Procurement.Travel

7 New Travel Entrants iTravel Patent Acquired ITA Software Blackberry Travel App

8 Fragmented Content

9 Demand Management Price and Quantity (Frequency or Consumption) $100/Trip X 10 Trips = $1000 Spend $100/Trip X 10 Trips = $1000 Spend Reduce Price $70/Trip X 10 Trips = $700 Spend $70/Trip X 10 Trips = $700 Spend Reduce Quantity $100/Trip X 7 Trips = $700 Spend $100/Trip X 7 Trips = $700 Spend Reduce Both $70/Trip X 7 Trips = $490 Spend $70/Trip X 7 Trips = $490 Spend

10 Demand Management DM ElementProcess Difficulty 10% Reduction of Internal Meetings 1.Purchase codes assigned 2.Soft stops Easy 20% Reduction of Internal Meetings 1.Mgmt memo 2.Internal Benchmarking Moderate 30% Reduction of Internal Meetings 1.Reduction of employees per meeting 2.VC alternatives Difficult 50% Reduction of Internal Meetings 1.Full pre-approval 2.Hard Stops Difficult

11 Meetings Management Data Collection Registration Contract Management Meetings Management Technology Integration Transient/ Meeting Integration

12 Hotel Contracting Dynamic Pricing?Death of LRA?Ala Carte Pricing?Ancillary Services –Not Needed?Outsourced ProvidersMulti Year?

13 Airline Contracting Commission Reductions Discounts by Fare Class Removal of Fare Classes Reduction of Discounts Requirement of All Market Share

14 Charge Card Fees  Impact to TMCs? Carrier’s charge Buyers Buyer’s costs rise Buyer’s question value Buyer’s look for other options (Pay Pal, Air Plus, Others?)

15 Service Configurations CTDs On Sites In Country Call Center Regional Call Centers Follow the Sun

16 Globalization Perceived vs Actual Needs Top 10 mistakes to Avoid

17 All Things Procurement Understanding Procurement TMC/Client Account Assessments Client TMC Sourcing How to Sell/Manage with Procurement

18 Open Dialogue

19 Corporate Travel Viewpoints January 25, 2012 Will Tate Senior Vice President Management Alternatives, Inc. 972-599-2833 willtate@manage-alt.com


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