CASE STUDY: Global Travel Programme Consolidation
The client achieved $6 million USD in savings due to the consolidation of their travel programme globally.
Corporate Travel Management (CTM) assisted in the consolidation of the client’s travel programme across 39 markets.
Read on to find out how.
A CTM client in the pharmaceutical space had experienced double-digit growth, adding over 10,000 new employees, and was looking for global consolidation of their travel programme with a global mandate across 39 markets.
A global pharmaceutical company had experienced double-digit growth year over year for four years and added over 10,000 new employees.
Their travel programme was fragmented and lacked transparency, with no global mandate across their 39 markets. The company’s growth amplified its need for better travel forecasting and consistency. Using benchmarking, it was found that their hotel and airline programmes were delivering savings in a few key markets; however, they were not implemented globally and were unable to take full advantage of hard-won supplier agreements without consolidated data.
The company set out to partner with a TMC that could support their global needs in a way that empowered their local affiliates to take part in the process.
CTM worked closely with the client to accomplish:
Local stakeholders on both sides were brought into the process early to ensure that key influencers were fully engaged and equipped with the bid outcome rationale, including customisable communication plans that would ensure the greatest buy-in for local offices and their travellers. The phased approach gave us the opportunity to build an ever-compelling managed programme as more markets went live.
The first step to achieving greater spend visibility and consolidated reporting was to implement globally standardised data requirements. For example, consistent application of trip reason codes made internal benchmarking possible. Standardised consolidated reporting provided visibility into areas such as unused air tickets – $1.3 million USD in unused air tickets was reduced to $20,000 USD in the first year.
A new global policy was introduced to balance managing costs and traveller satisfaction. Advance booking of 14+ days is now well over 76% of air purchased. Our global account manager continues to drive adoption by working with local stakeholders to educate and encourage compliance.
We report on more than 20 performance metrics monthly to deliver on our service level commitment. These metrics are then used to calculate a combined percentage of service quality and consistency. By the close of the first year, every market earned over 96%.
The client consolidated their programme across 39 markets and implemented 89% of the $100 million USD spend.
The company’s consistently consolidated buying power allowed for a $6 million USD savings target in the first year, driven by supplier negotiation and optimisation, online adoption, and policy compliance.
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