The articles in this premiere issue of Procurement.travelhighlight the evolution occurring in corporate travel and meetings procurement. Today, gaining industry knowledge of the intricacies and costs of airlines, hotels, car rentals, travel management services, payment options and technology is just the starting point for optimizing travel and meeting procurement initiatives. The new travel procurement professional is searching for ways to prove value--the value of traveling, and of the partners, technologies and controls they've selected to deliver it.
Procurement.travelhelps you understand and take advantage of these trends in the early stages of this transformation. As "The Source for Managed Travel Insight," we provide information about key developments and events in quarterly print issues, monthly electronic newsletters and periodic updates at www.procurement.travel. Founded by editors who have documented corporate travel and meeting management since its earliest days, Procurement.travelis designed to be your best source for analysis, case studies, data, key performance indicators, research, leading practices and news of this next generation for travel and meeting procurement.
Whether their background is in purchasing or the travel sector, procurement professionals must balance the return on travel against their company's business objectives and investments. To measure this cost, professionals need to know not only what they negotiated and what the traveler booked, but also what that traveler actually paid, expensed, received in return and delivered to the company. Companies today want to know not just the total cost of a meeting, but also how it compares with last year's costs, similar meetings in the same destination, similar types of meetings in other locales, reasons for any variances and the return on investment.
Professionals today compare this information with prior periods, across departments and, increasingly, against peers. Benchmarking against other companies is an important aspect of understanding of the value of negotiations and processes.
The metrics that travel management has used for years--cost per mile, average ticket price and average hotel rate--are yielding to new indicators. For example, as you'll discover in our Cover Story, Cisco Systemsis teaming procurement with travel and meetings to ensure that every dollar spent is properly influenced or scrutinized. Like many of its peers, Cisco is building a dashboard of relevant metrics and delivering it to business managers who most need it to make the best decisions.
In Leading Practices, you’ll read how IBM and other companies are relying on e-folio datato better reconcile, manage and negotiate their hotel spending. Our Feature story, "Probing TMC Pricing,"delves into the components of travel management pricing and the reasons why company executives need a keen understanding of the revenue streams and expenses to control their own costs.
In Profile, you’ll learn how General Millsis meeting departmental and company set-aside goals by selecting minority-owned hotels and a travel agency as preferred suppliers. Our Case Study highlights how Dominion Resources enlisted Six Sigma Black Beltsto study a travel issue: advance airfare purchases. Contrary to popular thinking, Dominion determined that there is a cost to purchasing tickets too far ahead of time.
Analysis of vexing travel procurement and management issues will be in the Case Study and Leading Practices sections of every issue. Indicators will offer the latest industry stats, price forecasts or actual cost increases, and new ways to measure programs. In each quarterly issue, you’ll also find insight on technologyand payment trendsin travel and meeting procurement.
But travel procurement is also about the process. Study after study this year--from Aberdeento Carlson Wagonlit Travel, BCD Travel to American Express--focused on the challenges of policy and the need to better control purchasing at the point of sale to manage expenditures. In this issue's Compliancesection, you'll learn why policy compliance will likely be one of the hottest issues of 2007.
The trend toward outsourcing aspects of travel procurement and management also is covered in each edition. For example, this issue examines the debate over travel management outsourcingas one travel company re-brands with a focus on this arena.
It's clear that delivering value today is a complex task. Procurement, travel and meeting professionals are defining and developing the metrics they use to measure it, and selecting the partners best-equipped to help.
We look forward to reporting this transformation. Let us know how we can deliver even more value to you; click here for contact details.