Debra Goldmann
Debra Goldmann, Verizon Communications senior specialist for travel services, last month participated in a webinar conducted by Financial Weekand Concur Technologies. In answering questions from listeners and Financial Week's Megan Johnston, Goldmann touched on demand management, unbundled airline fees, preferred booking channels and hotel last room availability. An excerpt follows.
In terms of difficulty in arranging travel, or in the expense of travel, how do you view 2008 so far?
We had gotten used to lower fares and a sort of relaxed buyer's market since 9/11. 2008 has been a real turnaround for us. It has been quite a challenge. We have been faced with different departments trying to put different cost savings methods in place. With an ongoing focus on their budgets, it's been difficult. Folks really didn't take fuel increases into account and how they were going to impact so much of what we do.
What is the worst part of the fees and surcharges that airlines have levied?
The most challenging aspect is staying ahead of it and fielding the questions, but not making your day-to-day responsibilities and your life be about responding to travelers. A big challenge is dealing with the folks who write your policies--and writing quick, new policies, like how many bags you can take and can you buy a soda on the plane, etc. So unbundled fees are a challenge, and it's a shame that it has to happen, but it does have to happen.
What new travel initiatives have there been at your company in 2008?
We have focused on demand management, and we have asked folks to travel when they need to, not just because they are used to conducting business that way. That's why we have been encouraging the use of the conferencing and collaboration tools that we use and offer. At Verizon, each department controls its own budget and this gives them the empowerment to allow folks to travel when they need to, but encourages them to collaborate to get the work done. We've met with the policy folks, as well as our senior leaders, and put together one focus, one goal. The message has to come from the top, and that's what we try to do with every initiative that we introduce, and demand management is one of them. We have the CFO from each of our organizations write a letter to the travelers alerting that this is something to be managed and, if it is managed, we can make it work. We have also tried to encourage folks to book as far in advance as possible. That's been extremely helpful. Our booking adoption rate online is 92 percent, so we save money that way.
Do you have trouble getting employees to book through the travel management company rather than on their own?
We do encourage people to make their reservations through the dedicated agency. However, we do have flexibility built into our travel policy that says if you can find a flight that is 20 percent less than the flight quoted by the agency--and you can prove it--you can fill out this form, send it in, have it approved and then make the reservation. The process is very cumbersome. We get about 10 a year. But we did that in response to [people saying] "I saw it cheaper on the Internet." Once in a blue moon it is true, but we all know the truth of how that really pans out. But this way, if they are booking on the Internet and do fill out the form (they don't get reimbursed without the form) at least we know where they are. [For hotel] we do not require folks to make their reservations through the agency if they are booking a less expensive hotel. We allow them to go direct.
Everyone may interpret last room availability differently. How do your vendors view it?
Last room availability is very slippery, very difficult to control. You don't know how they divided up their hotel at any given time nor how many people they have made promises to. When they say there are 20 rooms for Verizon, that may be their math, and it is difficult to challenge.