Rick K. Wakida, CTE, CCTE, GLP
Global Travel and Card Manager
August 12, 2014
Managed Travel Program Essentials
 Overview
 Business Travel
 Leisure Travel
 Leisure Travel versus Business Travel
 Managed Program Elements
 Program Goals
 Program Foundations
 Program Management
 Questions and Answers
The Travel Manager as Ringmaster
Travel
Management
Corporate
Cards
Expense
Reporting
Business Travel
 Second largest controllable expense
 Non-core business
 Management perspective
 High profile
 Political
 Financial implications
 Traveler perspective
 Personal
 Emotional
 Perk/Burden
Leisure Travel
 Planned in advance
 Budgeted
 Value driven
 Personal preferences
 Multiple travelers
Leisure versus Business Travel
How is travel booked?
How are suppliers selected?
What form(s) of payment are used?
What elements apply only to business travel?
 Travel Policy
 Travel risk management
 Expense reporting
 Management reporting
What is the purpose of Business Travel?
Managed Program Elements
 Travel Policy
 Designated booking channels
 Preferred supplier agreements
 Corporate forms of payment
 Management reporting
 Travel Manager/Corporate Travel department
Program Goals
What determines the goals of a travel program?
 Senior management objectives
 Company culture
What are the goals of a travel program?
 Traveler safety and security
 Traveler convenience
 Cost savings/avoidance
Program Foundations
What are the foundations of a travel program?
 Travel Policy
 Corporate cards
 TMC/OBT
 MIS/Data
Which data source has the greatest direct effect on the
organization?
How do these foundations support the program goals?
Program Management
 Supplier negotiations
 Airfares
 Hotel negotiations
 Car rental coverages
 Travel risk management
 Travel metrics
Airfares
Have you ever heard “The fare went up?”
Yield Management 101
 Assume three fare classes X, Y and Z
 Fares are $1,000; $700 and $400
 Airline allocates number of seats per flight
 100 seats – 50 @ $1,000; 30 @ $700; 20 @ $300
 Traveler books 21 days in advance - $300 fare
 Traveler books 14 days in advance - $700 fare
 Traveler books 3 days in advance - $1,000 fare
Hotel Negotiations
 Negotiated rate with the Clift Hotel: $120, LRA
 End of January average rate report for the Clift: $176
Q: How could this be?
A1: Revenue Management
 27 room nights @ $120 = $3,240
 39 room nights @ $165 = $6,435
 76 room nights @ $180 = $13,680
 58 room nights @ $205 = $11,890
A2: Definition of Last Room Availability
Car Rental Coverages
 Compulsory coverages
 Collision
 Liability
 Other optional coverages
 Personal Accident/Effects
 Supplemental Liability
 Super CDW
Travel Risk Management
Travel Risks
 9/11, London Transit bombings
 SARS, Avian Flu
 Eyjafjallajökull eruption, Tōhoku earthquake & tsunami
 “Train jumps tracks, 32 hurt at Chicago's O'Hare airport”
 MH 17
 MH 370
How does an employer’s Duty of Care impact the travel
program?
Travel Metrics
 Average Ticket Price (ATP)
 Cost Per Mile (CPM)
 Average Hotel rate
 Average Car Rental rate
 OBT adoption
 Top City-Pairs
 Top Hotel/Car Rental Cities
 Advance Purchase analysis
 Lost/Missed Savings
OBT Adoption rate
How do you calculate the OBT adoption rate?
 Based on total transactions
 OBT transactions – 200
 Total transactions – 500
 OBT adoption rate – 40%
 Based on eligible transactions
 OBT transactions - 200
 Domestic transactions (eligible) – 250
 International transactions (ineligible) – 250
 OBT adoption rate – 80%