Business & Technology Nexus

Dave Stephens on technology and business trends

Corporate Travel – Part 2

with one comment

Last post, we covered some of the inherent problems with managing corporate travel policies and controlling spend. But perhaps I started out seven steps ahead of where your travel problems lie. So let’s rewind and cover the most important “first steps” you can take when tackling the travel spend category.

This June ’05 Purchasing magazine story on the increased attention Purchasing departments are paying to travel spend is a great place to start. There are several points worthy of note: 1) For many companies, capturing travel spend data is a new thing 2) Initial savings comes from shifting from “legacy travel agency” to an online booking service and lowering transaction costs 3) It’s not a one-time “fix and forget” category, it requires regular attention.

As much as I’d like to argue for a more advanced treatment of travel spend, getting visibility into the problem and moving the booking process online have to be solved first. Once you’re there, you are ready for a more advanced regimen. Based on employee travel patterns you may be able to guarantee a minimum number of booking nights at hotels in some cities and can negotiate steeper discounts as a result. For large events, consider a reverse auction for block air and hotel reservations for an even better deal.

Once you know your spend and are aggregating it appropriately, consider the policy recommendations in my first post. And let me know how it goes.


Written by Dave Stephens

02/27/06 9:18 AM at 9:18 am

Posted in Opinion

One Response

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  1. Purchasing magazine alerted me to a January 2006 story they ran showcasing how Verizon saved 11M in Travel. Check it out here:

    Dave Stephens

    02/27/06 7:33 PM at 7:33 pm

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