Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
  • VOICESOpen Menu
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
  • RESEARCHOpen Menu
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARS & FORUMSOpen Menu
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
Business Travel News
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
    Managed Travel GuidesNEW! BTN ElevateNEW! BTN IntelligenceNEW! BTN Next
    Subscribe to NewslettersBTN DailyBTN EuropeBTN Elevate for SMEsBTN SustainabilityBTN Next for Tech & DistributionBTN IntelligenceBTN Weekend
  • VOICES
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
    ATPCO's New CEO Outlines Niche in AI Powered EcosystemsATPCO's New CEO Outlines Niche in AI Powered Ecosystems
    3Sixty Eyes Corporate Travel Market as Project Work Drives Extended-Stay Demand3Sixty Eyes Corporate Travel Market as Project Work Drives Ext.-Stay Demand
    Aeromexico Expands, Segments Corp. Sales FocusAeromexico Expands, Segments Corp. Sales Focus
  • RESEARCH
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• BTN Intelligence's 2026 SME Report• BTN Intelligence's 2026 AI Report• Travel Risk Outlook 2026• BTN Intelligence's 2025 Traveler Purpose & Productivity Report• BTN Intelligence's 2025 Business Travel Sustainability Report• BTN Intelligence's 2025 State of the Industry Report• Ecosystem Play: 2024 Tech Report• NDC Ecosystem Update 2024• Meetings Strategy Report
  • WEBINARS & FORUMS
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
    Scaling Rides and Meals Without Losing Control

    Tues., June 23 at  10am PDT / 1pm EDT

    Sponsored by: Uber for Business

    30 Minutes with Accor’s Julien Houdebine: Rate Confidence, Innovation and the Future of Corporate Pricing

    Mon., June 22 at   7am PDT / 10am EDT / 3pm BST / 4pm CEST

    Sponsored by: Accor

    From Data to Identity: Designing the Next Era of Intelligent Corporate Travel

    Thurs., June 18 at  11am EDT / 8am PDT / 4pm BST / 5pm CEST 

    Sponsored by: Emburse

  • EVENTS
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
    4th Annual Entertainment, Sports & Media Travel Summit New York

    W New York - Union Square - June 9, 2026

    15th Annual Business Travel Summit

    Pebble Beach, CA - June 16-19, 2026

    Business Travel Show Europe

    24 - 25 June 2026, ExCeL London 

    42nd Annual Travel Manager of the Year Awards & Reception

    InterContinental Chicago - August 5, 2026

  • RESOURCES
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
    BTN's Business Travel Management Tool Box

    The BTN Group has a variety of resources for corporate travel managers to build and refine their program strategies. Not sure where to begin? Check out this starter pack.

    BTN CTI Calculator - New Q1 2026 Data Added

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Research

Procurement Practices 2010: Managing Demand And Structure

By Michael B. Baker / April 11, 2010 / Contact Reporter
Business Travel News on X
Many travel procurement executives this year are ratcheting up use of such demand management practices as remote conferencing and more restrictive pre-trip approval processes after a year of trimming double-digit percentages from their travel budgets.

Companies saving travel dollars through videoconferencing technology neared critical mass in this year's Procurement Practices survey, with just under half of respondents saying they saved money through that demand management practice, compared with 37 percent in 2009. The same percentage also reported year-over-year increases in videoconferencing levels, which is fairly consistent with levels in the survey in the past few years.

In particular, companies focused on using the technology to cut travel for internal meetings, said Christa Manning, director of Expert Insights research for American Express Business Travel Global Advisory Services. "Customer-facing travel remains important, and a priority," Manning said. "Face-to-face meetings are important."

Christopher Wall, global manager of meeting services for Johnson & Johnson, said that has been the case for his company. Examining citypair and hotel data, the company determined that its highest volume of travel occurred between New York and Brussels and Amsterdam, he said. Johnson & Johnson installed two telepresence sites in Belgium and four sites in its New Jersey headquarters and is establishing a global network of them, Wall said.

"We've built sites throughout the U.S. and throughout EMEA and are expanding them in Asia as well, though we only have a couple in South America," he said. "We really went about trying to figure out where they would go within J&J. They were a project of the IT structure, and we worked with them to provide travel data, identifying where would be the logical locations."

Improvements in the technology have widened its adoption. Tommy Hilfiger purchasing director John Ingegneri said his company only recently has begun a significant investment in it.

"Being in the clothing industry, look and feel is very important," Ingegneri said. "Years ago, somebody would be on the screen, and you'd have to ask if they had a blue jacket or a black jacket. The quality of the HD now is so good that you can really see the fabric, the different contours on the fabric and the colors."

Marriott International and Starwood Hotels & Resorts each in recent months has gone live with in-house remote conferencing studios at key gateway city properties, and both hotel companies plan to add more studios across the world during the coming year.

As those efforts proliferate, and the technology suppliers work on interoperability among the disparate systems, remote conferencing usage stands to grow even further.

"If the interoperability issue does get solved smartly, we wouldn't have to have rooms everywhere," Wall said. "We'd be able to do it by having them go to a hotel or some other public facility."

Ingegneri said it remains to be seen how extensively Tommy Hilfiger travelers use the equipment. "This is coming down from the CEO, so I have to think there will be some buy-in in the beginning, but some people truly love to travel," he said.

Wall, however, said Johnson & Johnson already is discovering benefits to the tools outside of cost savings. For one, the productivity of meetings has increased, he said.

"It starts and ends on time because there are controls to be able to do that, and there are others waiting at the door for it," Wall said. "You're concentrating on accomplishing what you need to accomplish. You're also able to bring people into a meeting who ordinarily wouldn't have traveled."

He said he also views it as a quality-of-life improvement for the company's business travelers.

"If you can travel two or three times less and have a better home life, from the perspective of employee retention, we're ahead of the game," Wall said.

In terms of pre-trip notification and approvals, 39 percent of survey respondents said they use both in their travel program, up from 32 percent in 2009. Only a little more than a quarter of respondents said they used neither. Additionally, 41 percent of respondents said they had made the processes more restrictive in the past 12 months.

"That was definitely something we saw take hold in 2009," Amex's Manning said. "Pre-trip alerts and approvals really were given a second look and adopted by many companies that in the past may have felt, culturally, that it would never work."

As with remote conferencing, technology improvements also have aided growth in the practice. While pre-trip authorization once was not considered a best practice due to its potential to clog up the travel booking process, companies now can implement systems allowing for quicker automated approvals.

"With the availability of mobile solutions, managers can now be on the road and make the approvals," Manning said.

Outsourcing levels, meanwhile, remained somewhat steady compared with previous year, according to the survey. In 2010, 16 percent of respondents said they had increased travel services outsourcing in the past 12 months, while the vast majority—about two-thirds—said levels remained steady.

Carol Ann Salcito, president of travel management consulting firm Management Alternatives, however, said she's seen a significant uptick in recent years in companies placing employees of agencies in the travel management roles.

The danger with that, she said, is that while such programs can do well at running data, these individuals generally are limited within the scope of their agency and may not have an unbiased position.

"I'm watching programs that are becoming much more costly to the corporation and not providing them the complete value," Salcito said. "If you go out and do an airline bid, for example, you should have the ability and know-how to know what all the agencies are doing."

Within the individual travel task categories in the survey, air programs saw a slight uptick in outsourcing year over year, while several other categories—hotel and car rental, for example—were down slightly compared with 2009, though still significantly higher than 2008 levels.

American Express' data showed an even greater surge in outsourcing air programs, according to Manning. She attributed that to such industry challenges as reduced capacity and ever-growing ancillary fees.

"Outsourcing of air acknowledges the external expertise and support needed to stay on top of the industry," she said. "It lets them best negotiate a mix of carriers and alliances and gain access to benchmarking data to get a competitive deal."

Manning attributed demand management strategies' growth in part to increased involvement of procurement in travel.

"Companies that have travel driven by procurement professionals have a much better ability to do demand management than other functions, most notably when travel is overseen by human resources," she said. "They're pretty weak in terms of demand management."
More Research
Related
BTN's 2016 Airline Survey

Delta landed another overwhelming victory, but each of the Big 4 brought in better scores than the...

SME Travel Buyers: Who They Are, What They Manage & How

Business Travel News' annual Small & Midsize Enterprise Travel Management Report examines travel...

SMEs Find New Reasons to Globalize

Globalization. It's a buzzword that's gotten traction in recent years in the travel industry as...

Sponsored Content

VIEW ALL
Condor: 70 Years of Leading with Passion in the Skies
Condor: 70 Years of Leading with Passion in the SkiesBy Condor Airlines
BCD's More Open Approach to Corporate Travel
BCD's More Open Approach to Corporate TravelBy BCD Travel
Escape the noise: Practical tips for AI pilots in travel programs
Escape the noise: Practical tips for AI pilots in travel programsBy FCM

More Research

SME Travel Buyers: Who They Are, What They Manage & How
SMEs Find New Reasons to Globalize
Risk Management: Getting Started
SMEs Are Finding Better Deals Across Most Supplier Categories

VIEW ALL
Subscribe to Free

BTN Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. Long Lake's Transformation Plan for Amex GBT Will Take Years
  2. DHS Customs Proposal Threatens Int'l Travel Calamity
  3. Event Production Specialist Encore Files for IPO Amid Financial Losses
  4. Juniper Group Acquires Deem from Travelport
  5. BCD Introduces MCP Framework for Tripsource
  1. Take2Eton Group appoints Oliver as CEO
  2. IATA Halves Global Airline 2026 Profitability Forecast
  3. Choice Promotes Pallas to CTO
  4. Expensify Launches MCP Layer for AI Agent Data Access
  5. Maritime TMC Energia Consolidates Data with Travelogix
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Media Kit
  • Subscribe to Newsletters
  • Advertise
  • Editorial Guidelines
  • BTN Europe
  • Purchase Reprints
  • Privacy Policy
  • Terms & Conditions
  • Do Not Sell or Share My Data
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
BTNGroup
Business Travel NewsBusiness Travel News EuropeTravel ProcurementThe BeatBusiness Travel Show
Northstar Travel Group
Copyright ©2026 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement