So this is the year you’ve been tasked with managing travel.
Now what?
The good news is that there’s never been a better time to
enter the space. Solutions targeted to small and midsize travel programs have
proliferated in the past three years and tool sets overall have become more
agile. Of course, working with a small or midsize program comes with
limitations: Smaller budgets may shrink the scope of the program and limit the
range of technologies in which the travel or procurement manager can invest.
Lower spend also may cap discounts available from suppliers.
Stay optimistic. Compliance to defined travel policies alone
can make an immediate impact. Gaining visibility into travel activities over
time will deliver intelligence for a larger strategy. Plus, agility is a
benefit for small and midsize travel programs: Fewer levels of approval and
lower risk may translate into a company’s willingness to innovate. So get
started.
Think Big
Travel is connected to many areas of the organization. When
working with a small or midsize travel program, define as large a scope as you
can based on the budget and any internal resources available. The travel
program proper will include travel policy, a travel management company partner
and booking technology, along with attention to air, hotel and car rental
suppliers. But consider payment systems and expense tools, as well. They will
affect the program from defining processes to capturing data and delivering a
smooth end-to-end experience for the traveler. Defining a broader scope now
could translate into a more effective program.
Program Quick Start
Initiate an interim program immediately by defining a small
list of preferred suppliers and a concise policy about how to book them. Take
cues from travelers in terms of which suppliers they currently use. Select two
or three hotels around each of your company’s offices, research the convenience
of airlines and connections to the top five or 10 most-traveled markets. The
interim policy and supplier set need not transition to the permanent program,
but there is value in turning around a quick win that sets the stage for future
growth.
Ditch Linear Timelines
It’s tempting to create a to-do list with the idea that you
will source a preferred TMC or online booking tool first, then create policy,
then tackle each supplier category one after another and so-on. It may work,
but it likely will take more time. Instead, think of travel program creation as
analogous to cell division: The growth tends to be exponential when elements
are set in motion simultaneously and the faster the program then can come to
life. Set expectations with management that the first three months may show
only small advances that are setting the stage for a robust program.
Understand The Value Of The TMC
A trusted sounding board and a few extra hands can be
critical in setting up—and maintaining—a nascent travel program. For that
reason alone, establishing a solid TMC relationship at the very beginning of
the process can be one of the keys to success, but there are other benefits.
Access to TMC rates for hotels and other suppliers may be a welcome alternative
to formal sourcing initiatives, particularly for travel buyers with lower
spending levels. For small and midsize programs, the TMC very often is the
gateway to an online booking tool and mobile app for traveler services. TMC
reporting is critical for program analysis, and some companies may invest in
consulting services.
“Best Practice” May Not Always Be Best
Travel management is changing, and many new options are
friendly to small and midsize programs. That said, carefully consider even
widely accepted best practices and solutions to make sure they will work for
the company’s unique program. Is a large—and resource intensive—RFP process
necessary for the hotel or air program, for example? There may be alternatives,
like emerging price-tracking technologies, which could accomplish similar
objectives. Likewise for payment systems. A start-up or small company may not
have the requisite credit or spend levels to support a corporate card program,
but might look at an all-in-one purchasing and T&E card or explore virtual
or reloadable options that still deliver good data.
Set The Stage For Future Strategy
Indeed, data is the endgame for travel management. It
reveals compliance levels, drives supplier relationships and discounts, helps
locate travelers in case of emergency and more. Whether managing travel full or
part time, the travel manager must be clear on the company’s objectives and
create a program that can track quantifiable results against those goals.
Special thanks to Rick Wakida, global travel and
card manager for DocuSign, for informing this article. Wakida has initiated or
inherited half a dozen midsize travel programs in the past 15 years. He is a
former president of the Silicon Valley Business Travel Association and sits on
the government relations committee for the Global Business Travel Association.