Company: Compaq Corp.
Headquarters: Houston
U.S. air spend: $42 million
Countries in program: 51
Doug Schneider, global travel manager for Houston-based Compaq Corp, has saved his company millions on its global T&E spending of $104 million by driving high compliance to travel policy, creating effective supplier relationships and maximizing the return on company investment in travel management services and tools.
Compaq's domestic air budget for 2001 was $42 million, down from $80 million in 2000. This year, Schneider said, air spend would be reduced again, due to cost-effective management as well as some reduction in travel. So far, Compaq has lowered travel costs 30 percent on a year-to-date basis compared with 2000. Schneider aggressively pushes compliance to the travel program in Compaq's locations around the globe, sometimes spending more time on the road than at company headquarters. "You can't manage a global travel program via e-mail," he said. "Meeting personally with overseas business units really helps, since local managers drive global compliance."
Schneider prepares for meetings with local execs by first attending briefings with the local American Express representatives, who fill him in on the specifics of travel in that particular location. Compaq's ability to deliver market share and Schneider's proactive, comprehensive approach to sourcing has cemented very solid relationships with suppliers, said American Express global account manager Steve Saatkamp, who is dedicated to the Compaq account. "Doug flies to the headquarters of his travel suppliers so he can talk to the most senior person available," Saatkamp said. "He flies to London to negotiate with British Airways, he visits Amsterdam to negotiate with KLM and it pays off." So far, Schneider has consolidated Compaq's travel and card programs in 51 countries. "He has complete agency and card data," Saatkamp said. "And suppliers can't argue with the numbers." Effective sourcing and high compliance has lowered Compaq's cost per air mile to 32 cents, 40 percent below the Amex industry benchmark of 52 cents.
When it comes to corporate spending on resources for travel management, Schneider judiciously deploys American Express' services to maximize returns, while keeping costs below industry benchmarks. He has a small company staff, consisting of a North American travel manager, a hotel commodity manager and an airline commodity manager. According to American Express' 2000 benchmarks, the average is nine travel staffers for companies with travel budgets the size of Compaq's. Schneider also saves on costs by limiting the company's onsite staffing to two VIP travel counselors each at its Houston headquarters and its Cupertino, Calif., offices. All other calls are fielded by a low-cost, 100-person call center in Tampa. Consolidating overseas call centers is an ongoing process for Schneider, who this year consolidated five centers in London into one in New Castle, England.
Schneider has implemented online booking in North America and select overseas locations, including Australia, Germany and the United Kingdom. "We use American Express' CTO platform," he said. "The cost savings are substantial." On e-bookings, the average ticket price has fallen 40 percent and transaction costs are 50 percent lower. Adoption is around 15 percent, but raising those rates is a major goal this year.