Benchmark Software Updated

<FONT SIZE="+3"><B>Benchmark Software Updated</B>

By Mary Ann McNulty

Updating the Best Practices in Travel Management software launched two years ago (<I>BTN</I>, June 27, 1994), a group of travel management company executives met recently to focus on practices related to automation, net deals, mergers and acquisitions, and cost controls.

A number of the changes suggested reflect the increasing use of automation in every aspect of travel, from booking and ticketing through expense reporting. For example, a best-practice travel policy should now include policy support through electronic bookings. Included in the best practices for selecting an agency are offering alternative methods to book reservations and supporting integration of automated systems. And for communicating travel policy, a best practice is one that uses an intranet or Internet site to assist travelers.

"In 1997, most companies on the leading edge will be doing electronic bookings," said Ralph Brown, the South Elgin, Ill.-based consultant who developed the software. "We have to adapt to that."

The meeting, held at BTI Americas' Northbrook, Ill., headquarters, also included AAA Travel Agency, Charlotte, N.C.; Arrington Travel Center, Chicago; and McCord Travel Management, Chicago. A meeting with corporate travel buyers will be scheduled later this year, with the new software incorporating all the changes scheduled for release in February.

In the travel agency section, the agency representatives struggled over the volume point at which an account should have a full-time, dedicated account manager. In the end, they agreed to raise the current figure of $10 million to $15 million. The group agreed that account managers today must be more professional, able to interface with all levels of staff, highly polished and equipped with the skills to present to senior management at any time.

Participants likewise debated the volume at which a best-practice company should employ a full-time travel manager. In the end, they decided that a travel manager is needed at companies with air volume higher than $10 million, double the existing figure.

In terms of agency performance, participants voiced a desire to boost the telephone efficiency best practices from the existing "80 percent of calls answered within three rings or 20 seconds."

"It's been 80 percent for 10 years," said Mary Gould, director of client consulting for McCord Travel Management. "It's time to raise the bar." Brown will add best-practice statistics for average performance and high performance to the agency performance section.

One of the most revised sections pertains to money. Among the additions to the best practices are having an open-book policy on all financial data, revenues and expenses; ensuring timely payment of benefits; producing a detailed statement of financial performance; and having agency support for allocation of resources.

Reflecting the increase in domestic and international air deals, the benchmarks will stipulate the percentage of domestic and international air volume that should be on a negotiated fare basis. Participants debated whether the figure should be in the 60 percent range or as high as 80 percent, so Brown plans to search the database, which contains information from more than 300 companies, for an acceptable figure.

Meanwhile, Brown is working on a European version of the best-practices software (<I>BTN</I>, Aug. 5), which is expected to be ready by year-end.