Spend-Control
Essentials
Stay on top of these, and be on the lookout for both trends
and anomalies.
• Identify key city pairs.
• Track vendor volume.
• Capture average air ticket cost.
• Capture average air cost per mile.
• Capture average hotel cost per market.
• Track Individual employee spend.
• Identify top travelers, their patterns and class
categories.
Capture This Data
Yourself
Share these with your travel management company to ensure
the best reporting and services.
• Employee ID
• Cost centers
• Phone
numbers
Forsythe's Michael Wereski pulls the travel data he analyzes
from multiple sources: Cornerstone Information System's iBank reporting
solution, Forsythe's two expense management systems and reports from other
vendors. As procure-to-pay supervisor of travel-and-expense management, Wereski
spends as much as 40 percent of his time pulling reports and analyzing the
data. "At some point we just get buried in it," he said. "The
challenge we have is what to do with [the data], how to organize it and present
it in a simple fashion … and make decisions without taking forever."
The problem is one of scale. Small and midsize enterprises
have fewer resources to devote to the piles of data available to them. "Small
firms face the same [data challenges as larger companies] and sometimes it's
even worse because of the different resources and budgetary challenges and
systems," HSBC regional head of travel services Michael Lyons said at the
recent Association of Corporate Travel Executives conference. During the same
panel Tom Tulloch, North America managing director of business data
intelligence firm Pi, added, "I don't know of any solution that's a
turnkey, plug-and-play, inexpensive solution for smaller companies."
Still, SMEs can take measures to improve data management.
Access the Right Data
SMEs typically depend on data provided by their travel
management companies, but that data usually is limited to air, hotel and some
ground transportation bookings, according to Travel and Transport general
manager of strategic initiatives Brian Beard. Often, the data the TMC provides
is not as robust beyond air because hotel and rental car attachment rates are
low, he added. Additionally, some SMEs may not have an expense tool or don't
tend to issue many corporate cards. "They don't have all the data sets to
pull from to be able to see their entire travel management program," Beard
said.
An expense management system can provide more visibility
into expenses that aren't booked through appropriate booking channels. If air
and hotel are booked separately—through a ghost card, for example—managers have
to integrate the additional data sources into their analyses. Or an expense
tool can bring that back into the fold.
Configure the Tools
It's important that travel managers invest time up front to
configure their existing tools, such as booking or expense management
solutions, because that will determine the quality of the data output,
PayForTrip CEO Cindy Allen noted at ACTE. Allen, previously vice president of
Concur TMC services, said a tool like Concur's integrated booking and expense
product can be more valuable when configured for a particular company. "Where
a lot of SMEs fall short is that they don't invest the human resources and the
discipline to stay on top of how they have the technology set up," Allen
said. "Take a deep dive with your partners, whether it's your TMC or
booking tool partner."
Tools should capture employee ID, cost center, amount,
location and merchant or merchant code. Air and hotel spend data additionally
should have data fields like class type, number of nights and ancillary
purchases.
"It's not only important for the travel manager to get
data, but it's important for the TMC to get HR data so when the traveler
travels, the TMC not only knows who the traveler is but what the employee ID,
phone number and cost center is within the organization," Beard said. "It
really helps us on the back end to do all the process."
Companies have different goals, but in Wereski's case, he
aims to improve savings. He does so by monitoring essential things like air,
hotel and rental car spend, city pairs, individual employee spend, vendor
volume and top travelers and their travel patterns and class categories. He
also keeps an eye out for trends and anomalies.
Work with Key Partners
Lyons suggested that an SME should "really challenge
its TMC to what they can do from a human perspective with their own resources."
TMCs should be motivated help SMEs find solutions because what works for one
client will probably help their other clients, he added.
By becoming resellers, TMCs may give SMEs more access to
data-intelligence solutions and provide them with more favorable pricing than
an SME might achieve directly with a third party, Beard said. Also, as with
other technologies, the more time passes, the more affordable they will become.
Forsythe has been renegotiating with its TMC, Frosch, to
include more robust data-mining solutions from providers like Cornerstone and
Grasp Technologies.
More TMCs may begin to cater to all company
sizes and offer to collect expense and credit card data for a full-service
offering, Beard said. "There are TMCs that are starting to go down this
path … and that will resonate well with SMEs."