The United Kingdom's University of Nottingham is enjoying lower travel
management company fees, administrative costs and supplier rates following a six-month
rollout of a fully automated and managed purchase-to-pay solution. The
university previously had virtually no coherent travel or expense program. "We've
brought the commercial world into the higher-education sector," said professional
services category manager Jeannette Harrison.
The university consolidated to one mandated TMC, American Express, and
introduced Concur for both online booking and automated expense management. In
addition, it for the first time brought in comprehensive payment solutions, including
AirPlus International's lodge card for TMC bookings and corporate cards for all
its travelers' on-the-road expenses. Payments made through corporate cards automatically
are prepopulated in travelers' online expense reports.
The advanced automation and integration of University of Nottingham's
new program hardly could contrast more starkly with its travel arrangements
before the transformation, which occurred between November 2010 and April 2011.
Until then, there was no TMC mandate, although travelers were encouraged to use
one of three recommended providers, including the university's student travel
agency. Travelers made bookings by phone or, when using the student agency,
face to face. "We had little, if any, control or management information,"
said Harrison. The student agency in particular had limited back-office capability,
and there was no coordination between data provided by the three travel
agencies.
The expense management situation was no better. The university operated
a very limited card program for senior management and required paper invoices for
every transaction—each associated with a purchase order number. Travelers
manually filed expenses, which meant they had to be re-keyed by the
administration department.
In this challenging environment, Harrison labored for several years to
achieve limited efficiencies and supplier agreements while urging the
university's management to authorize a more comprehensive travel program. She credited
two factors as catalysts for sweeping change: a decision by senior management to
introduce electronic procurement and payment across all purchasing activities
and her conclusion that travel technology tools finally had evolved sufficiently
to meet the university's needs.
Harrison cited online booking tools as an example of the progress in
automation. East Midlands Airport, the nearest to Nottingham, is dominated by
low-cost carriers that previously were not readily bookable through corporate
booking tools. "We had to wait for them to catch up," she said.
"We wanted low-cost carriers on the same display as traditional
airlines." Concur now sources budget airline content from Travelfusion, a U.K.-based
travel content aggregator.
After conducting tenders for a TMC, payment solutions and booking and
expense tools, Harrison staged a phased rollout for the new travel and expense
program covering the university's staff of 7,000. She divided the faculties and
other departments into three groups and introduced the program to each in two-month
intervals. In spite of her previously limited ability to manage travel,
Harrison said she had set up good lines of communication with the faculties,
which built trust and helped ensure a relatively smooth implementation.
Feedback achieved through pre-implementation communication also
encouraged Harrison to make a crucial change to her rollout schedule.
Initially, she had planned to introduce only the new travel program (mandated
TMC, booking tool and lodge card), leaving to a later date the expense program
(corporate card and automated expense management system). But stakeholders made
clear that a big-bang approach was preferred so travelers could reap from the
outset all the benefits of an integrated solution, such as pre-populated card
data in expense reports.
Harrison said the university's immediate gain was reduced TMC fees
through online booking. The online adoption rate has reached percentages in the
high 70s. She also is beginning to receive for the first time comprehensive
management information, which already has helped her negotiate reduced rates
with local hotels and improved her bargaining position with other suppliers.
Another benefit of improved data is a better understanding of where travelers
are located, thus helping the university to meet its duty-of-care obligations.
In addition, there are signs of the booking tool pushing down average ticket
price through the well-documented phenomenon of "visual guilt."
Because official booking channels do not always provide the best pricing
options, Harrison is keen to make the new program flexible enough to allow
travelers to use alternative booking sources when appropriate. One recent
example occurred when a traveler found domestic China flights at a lower price
on the Internet. "We are telling travelers if they find something like
that, they should let us know so we can publicize it to all travelers for them
to make informed decisions," said Harrison.
Despite the enormous strides the university has taken in recent years,
Harrison still has more improvements in mind. These include the introduction of
e-receipts and possibly Concur's mobile app, which would allow travelers to
change bookings and file expenses through their phones, and line managers to approve
expense reports remotely.
However, some remaining frustrations regarding limitations of existing
technology are unlikely to be resolved anytime soon. The London terminus for
cross-Channel rail service Eurostar is St. Pancras, which also is the terminus
for trains from Nottingham, yet it is not possible to buy via Concur (or any
other corporate booking tool) an integrated through-fare from Nottingham to
Paris, because U.K. domestic train operators are not fully present in global
distribution systems.
In consequence, Harrison must show the flexibility she considers so
important to maintain the credibility of the travel program. "We advise
travelers they are better off using the Eurostar website for Nottingham-Paris
tickets," she said.