Most mature managed travel programs have devised effective
sourcing strategies for the key categories of air travel, car rental, lodging
and travel management services. But many "continue to leave significant
money on the table" with their lightly managed or unmanaged approaches to
the 18 percent of trip costs categorized as "other," according to BCD
Travel emerging technology and global strategic marketing director Miriam
Moscovici. That often is comprised of mobile devices, data and Internet access,
ground transportation and dining.
Moscovici told attendees at a November conference held by
the Association of Corporate Travel Executives in Vancouver, B.C., that
new-entrant suppliers, new technologies, enhanced data reporting and new ways
of thinking have created a perfect scenario for buyers to take advantage of
opportunities to manage heretofore unmanaged categories.
Searching For Mobile
Savings
"Some things are going on with mobility that didn't
exist a few years ago," Moscovici said. "Companies are starting to
talk to larger providers of wireless Internet about negotiated deals."
As first steps, she advised travel buyers to learn who
within their organizations owns the mobile policy and to ask telecom or
mobility teams (or mine expense data) to determine how much the company is
paying for such access and to which vendors.
"Learn who are your big spenders of data usage or
identify a demographic," Moscovici said. Travel buyers could offer to help
the mobility policy owner identify those spenders, negotiate a deal and market
it to relevant travelers.
The travel department ideally is suited to help corporations
better contain "out of control" voice, data and roaming surcharges,
she suggested. Armed with itinerary data, the travel department or appointed
travel management company could contact a cell service provider on a traveler's
behalf to schedule an international rate plan. One TMC representative said his
agency "sends a weekly report to the IT phone guy of all international travelers"
to adjust phone plans.
Ground Transportation
Ground transportation for many travel programs represents
another largely untapped category. "A whole new ecosystem of mini global
distribution systems has emerged," Moscovici said. "These are highly
regionalized reservations systems not just for chauffeured or limousine
transport but also automated dispatch for taxicabs. Sometimes they're plugging
into a GDS, other times not. But it's something worth looking at, especially
because these [transport providers] all have mobile apps now. In some cases,
these tools don't just allow you to book one type, but blend black car,
chauffeured car, limo, taxi and public transportation into one search criteria.
You can actually start conditioning travelers to handle their on-demand ground
costs before they leave so they can estimate costs. One reason that travelers
spend so much on ground transportation is because they don't think about it
until they get there and at that point they're spending $60 for every taxi."
Instead of managing vehicle fleets to avoid the costs of
taxis, city center car rentals and overnight parking, some companies are opting
for fractional, on-demand car services. Even without a negotiated agreement,
hourly rentals may make more financial sense for some travel patterns,
Moscovici noted.
Dining
Instead of ordering room service, Moscovici said she usually
relies on a mobile app to identify nearby restaurants that would deliver. "They
are all regional so you can't use the same one here and in Paris," she
explained. "You can literally order without having to talk a different
language." Some offer rewards for frequent use, she added.
Moscovici also encouraged buyers to request reports
identifying travelers headed to destinations that typically have higher dining
costs. "Perhaps you could suggest that they download this app and use it,"
she said, or recommend options within per diems. More aggressive companies
establish food and beverage programs, contract with Dinova or try to negotiate
discounts with restaurant chains, she added.
To identify savings, she said to "look only at things
you might be able to change," perhaps the behavior of travelers with the
highest mobility charges or who travel to top destinations.
Cultural changes within corporations also may make
cost-cutting suggestions more palpable, Moscovici added. Corporations are
pushing travel budgets further down into functional groups to those who want to
"squeeze as much as possible out of budgets. That's an interesting force.
Your travelers are often more ingenious than we could even imagine."
This report originally
appeared in the February 2013 issue of Travel
Procurement.