Hewlett-Packard Consolidates Travel To Two Global Call Centers - Business Travel News

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Hewlett-Packard Consolidates Travel To Two Global Call Centers

September 20, 2010 - 04:10 PM ET

By David Meyer

Hewlett-Packard during the past 18 months has consolidated its travel operations into two global call centers using one travel management company and one global distribution system, implemented other advanced travel automation and consolidated a variety of payment structures into one centralized system. As a result, it has reduced travel spending by 40 percent and staff and program costs by 50 percent, while maintaining customer satisfaction levels at more than 92 percent.

Not incidental in this process was the integration of technology services company EDS, which HP bought two years ago. At that time, EDS had 30 different payment systems and HP had 11. In the past two years, HP moved expense and payment into the same organization as travel and consolidated all 41 into one American Express payment system.

"We thought we were consolidated four years ago when we went to the BTI model," said HP global travel strategist Jeff Kurn regarding a former HP travel configuration, provided by Business Travel International, which began as a joint venture between BCD Travel and Hogg Robinson Group. "They did a great job for us but they weren't really consolidated, as HRG and BCD didn't share everything, so we went out for a fairly large bid a couple of years ago when EDS came in. They had been with Carlson."

Having selected Carlson Wagonlit Travel as its global travel management company, HP decided to pursue a two-call-center configuration for the entire world, using the Sabre global distribution system as its technology platform. It began using that configuration, with one call center in Rzeszów, Poland, and the other in Vancouver, in November 2009.

Jeff Kurn"We did not want local and country call centers anymore," explained Kurn. "We wanted to consolidate not only centers, but also tools and technologies, so that everyone was using the same model—a little bit like GE's been doing over the years—but it's not follow-the-sun. The intent is that you are calling into this cloud. Now, you are mostly dedicated to one call center or the other, but we are moving in the direction that you will be served in the place that has the best set of resources to meet your needs."

Kurn said that would be achieved by year-end. He acknowledged that HP had considered going to one global call center as a way of further reducing costs, but determined that "you always need a contingency if one goes down."

In looking to reduce costs for a travel program that still is anticipated to reach $1.1 billion in spending this year, HP not only was focused on consolidating to fewer call centers, but also where they were. "Vancouver and Poland turned out to be very good low-cost call center locations because of language skill sets," Kurn said. "Most of our business is obviously in English, but the Vancouver site handles Spanish and French Canadian, and the Europe center handles most European languages. Asia right now is calling into Vancouver. Japan and China are still in-country. When they go to the cloud, there is a minimum set of requirements. One is that they are on our common GDS. Another is they use one of our common online booking tools, GetThere and Cliqbook. Right now, neither China nor Japan can support that. China will be going to Sabre for international bookings, but 90 percent are still domestic."

Other objectives of the consolidation, said Kurn, were speed, consistency and accuracy. He said a lot of front-, mid- and back-office tools were implemented to ensure that HP travelers would get the right rates. For example, he said, "All of the reservations are funneled into common quality-control tools so that we have a 100 percent audit on hotel rates. It doesn't eliminate rate-loading issues, but it helps alleviate them, because the next day we can call the hotel and ask why they didn't honor our rate. Sometimes, in sold-out city locations, you get what you get, even though we have last-room availability on all of our rates. We used to do three or four audits a year—wave audits, which are point-in-time audits. "

HP uses the same global tool to ensure its travelers get its globally negotiated air and car rental rates. "We use a Carlson quality control product that is part of their suite of tools," Kurn said, "but they built part of it for us to be able to handle the global-ness of it. We pushed the bar. They didn't have this in many regions, so they had to build it for us."

"We looked at the marketplace and the way we worked with our suppliers to make sure that we are getting up to 45 percent discounts with some of the major airlines," said Kurn's boss, vice president of global supply chain solutions Becky Cornett. "We have a system in place, a quality assurance tool, that makes sure the rates we are getting out of our agency compare to the lowest rates and the discounts that are offered by the major providers. We take a run at that on a daily basis and roll it up on a weekly basis to ensure that we are getting the best deal. A lot of companies slice good deals but they don't have any mechanism to see if they are getting those deals or not. That was part of a big effort around compliance, to ensure that we do get it. That is laid over the booking tool."

HP also installed tools to make use of unused nonrefundable tickets, she said.

Another tool HP put in place in the past 18 months, a pre-trip reporting mechanism that sends passenger name records to mid-office technology providers GDSX and TRX on a daily basis, had an unexpected payoff during the volcanic ash crisis this spring.

"With this, if the manager sees there is a difference between the booking and the lowest possible fare," said Kurn, "the next day she can say, Book the lower fare please, or even, Why are you going at all? Before, we didn't have that type of visibility. Because we had that visibility for business control purposes, we also had it during the volcano."

Despite having that tool in place, Cornett said HP learned from the experience and further refined its operations. "We had our own contingency plan and Carlson Wagonlit had its own contingency plan," she said. Immediately following the crisis, she said, "We put the two together and we've added one of the Sabre tools, which is an excellent tool to track travelers, so if there is a strike in Bangladesh, we know about it immediately and how many travelers we have there at any point."

Cornett said HP also learned that it needed to capture the cell phone numbers of its 150,000 travelers so they can be contacted in emergencies.

When the effort began, Cornett said, "We looked at how we could improve the supply chain not just in one area but how we could be the best in every single link of that chain and how we could improve pieces through automation or eliminate them to make it more efficient than it was before. From a purely project standpoint, what we wanted to achieve, what we outlined 18 months ago, we have completed."

Not content to rest on those laurels, however, Cornett and the travel team have set ambitious goals for the next couple of years, during which time they intend to consolidate to one booking tool, integrate HP's Halo videoconferencing and Palm personal digital assistant tools into corporate travel, achieve an end-to-end travel and expense solution, elevate the management of HP's meetings expenditures and add emerging markets to the 62 countries the travel program currently covers, which account for more than 90 percent of its spending.

"HP is also working to expand its presence in 50-plus emerging countries and how we take our systematic approach to this program and make sure we have the infrastructure so that we are ready to roll when HP does penetrate into those are additional elements of that transformation," Cornett said. "We will never stop transforming because there is always something that we can do better than the leading edge and above and beyond what the industry is doing."

This report originally appeared in the Sept. 6, 2010, issue of Business Travel News.

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