Thursday, September 4, 2014

25 Transformations in 25 Years: Local Association Needs an Online Travel Solution for Staff and Non Staff Travelers.

A local association customer of MacNair’s needed reporting, itineraries, and traveler information for both staff and repeat travelers (profiled) and one time travelers (non-profiled) who were booking travel on their online booking site. The association wanted to be able to put all travelers booking within their site (including the non-profiled) on their corporate card. Meeting planners needed to get all travelers on board with using MacNair and improve their online adoption. As a result, we created two separate travel sites – both paid for by the association - one for profiled and one for non-profiled travelers. On the profiled site, travelers’ data would get saved. For the non-profiled the traveler would be responsible for inputting their TSA information at the time of booking. A meeting link was setup for each individual site and the meeting planner was able to receive a copy of itineraries and reports for both groups.


As a result, the Meeting planners had the ability to track all travelers (profiled and non-profiled) and would receive itineraries on each. This enabled them to mandate the use of MacNair Travel for everyone and online adoption jumped up to 89%, reducing fees while policies and procedures were enforced with quality booking data and trends that reduced ticket costs by 18%.

Thursday, August 14, 2014

Ebola Issue Brings up the Need for Risk Management


As I watched the plane bring the Ebola effected doctors back to the US I thought about the risks my customers take in sending their travelers abroad for business - and even when their executives travel to unique places for pleasure. I also thought about the risks that occur when traveling in the US and was reminded of the tour bus crashing into people in Manhattan.

I attended a business meeting recently where Europ Assistance (a global travel assistance provider) gave me some facts and insights on the subject. 63% of companies have no travel risk program in place. They don't feel it will happen, don’t know the legal liabilities, don't know where to start, and don’t know the costs of a potential incident. One incident can surely be much more than the cost of putting a travel risk mitigation system into place. Think about the reimbursable costs, the time and disruption to the traveler and company, and the legal costs. 87% of the time an issue takes place the employee sues the employer. Yes, you have a business travel accident policy but what exactly do these type of policies cover? Then you have to ask is this policy combined with training, education and the establishment of protocols ( hotlines, approvers, contact systems, portals, alert opportunities, training, and more). These items minimize the impact for the traveler, their family, and the company - and reduce legal challenges.

The top three components of a great travel risk program include:

1. Prevention- intelligence, pre-travel training, crisis planning.
2. Monitoring – tracking, alerts, medical monitoring, records sent from TMC to provider.
3. Response - 24/7 response, protocols, insurance.

There are many decisions to consider in advance. Direction is required and we partner with companies for solutions. MacNair is having an upcoming webinar on this subject next month. If you are interested in attending or having a direct discussion, like or comment on this blog post

Wednesday, July 2, 2014

Improve T&E Program Compliance with These 3 Program Communication Tips.

Getting everyone on board with your Travel and Entertainment (T & E) program can be a challenge. I have found that these three tips make compliance improve significantly.
1.   Request compliance with your T&E system not just your suppliers. I often hear at kick off meetings for new customers that the company will be requiring everyone to use their new agency - MacNair Travel. While that may be true, aren’t you asking them to commit to the system that you selected to manage this significant line item with you TMC as one fulfilling supplier of this process? You want them to follow your T&E policies, your procedures for booking and filing travel expenses, preferred supplier agreements, security and more. And your TMC is here to help direct some of these items and support them. The process has many pieces that you have carefully selected. Sell your process. Maybe even name it.
2.   Make sure T AND E are addressed in your policies and procedures for everyone to understand. Seeing the big picture of the procurement ecosystem that you want them to comply with to manage this big line item makes for a bigger case for following this generally accepted procurement process. 
3.   Explain what is in it for the company and them. They haven’t heard the case for procuring versus simply buying travel. Explain it to them. Travel management is the ying and yang of making sure the company and the travelers are as happy as they can be together. A win-win. Win-lose scenarios never work out. So what are you looking to accomplish, what are the numbers behind it, how have you determined it will deliver an ROI. Then update this at least once a year with data from the TMC.
 
 
I hope this helps rejuvenate you on the opportunities and inspires you to relaunch with better results. This is the right thing to do

Tuesday, June 17, 2014

25 Transformations in 25 Years: Association Saves Fees and Fares by Implementing Online Booking Tool with MacNair Travel Management

An Arlington telecommunications association wanted a travel program that was high-tech and high-touch that would save on fares and fees. In 2002, they selected MacNair Travel Management to implement a program to provide top-shelf support and quality technology that would drive high online adoption rates, save money through policy creation and enforcement, and offer a wide range of fare savings opportunities. We implemented several important features: we implemented GetThere, an industry leading online reservation tool, we provided comprehensive kickoff meetings and on going training to introduce the association staff to MacNair’s team and technology, we helped update and enforce a new travel policy that clearly defined when online should be used, we helped the association justify their new travel program and policy decisions with data and best practices, and we instituted reporting system to include a central credit card reconciliation process that made their finance department giddy with excitement.  

Results:

The association's average ticket cost in the last year (we tracked from April 2013 through March 2014) was $415, which was far below the national average for the same timeframe of $545*, providing a per-ticket savings of $130. Based on its ticket count of 402, the association saved $52,260. Of these 402 transactions, 93% were online. The association's online adoption rate has increased by 30% since their first year with us in 2002 – that year the percentage was 63%. Since each on-line transaction saves $20 in fees over the industry average for full service transactions, the association saved a total of $7,460 on fees. Thus, the association saved $59,720 in the past year in combined airfares and fees. Twelve years later they are still finding a savings with us and still going strong.

*Numbers are based on national averages provided my Topaz International and GBTA

Wednesday, June 4, 2014

Uber and Lyft are cool. Can cool get you in hot water?



I love how technology is revolutionizing the world. I am amazed how bureaucracies like taxi commissions are being challenged by new ideas and products like Uber and Lyft. I even love how being able to book black cars and taxis online are making their way into our capabilities. I personally use Uber myself and love it, but I thought about how products like this need to be evaluated and vetted by your procurement team like every other supplier used by your company.
I have been watching taxi commissions trying to address the public use of these tools and can understand both sides of the argument on the subject. Governments have set expectations about what taxi services should have to protect consumers up until now and in most locations, services like Uber have not had to comply with these requirements. On the other hand, I have sat in bad dirty taxi vehicles driven by drivers that don’t know there way around for too much money. Drivers who don’t talk to me because they are on their phones with a friend, who have ancient technology on board, and who I have no easy way to rate their service.
As you may know, Uber gives you the capability to rate their drivers and even pick the highest rated ones. I am by no means trying to throw taxi drivers under the bus, but inconsistencies are rampant in a system that was developed to protect consumers and ensure quality. As in anything, I think that the answer of what to do with the revolution started by companies like this lies somewhere in the middle. Some regulation, more competition, and automation. I am pretty confident that that is where this will end up.
That being said, this is an example of the risks that your travelers can be obliging your organization to if you do not vet and pay attention to the suppliers used by your staff. If an accident does occur, if an executive misses appointment, if a road warrior spends way too much (price should also be vetted in the process), or your credit card data is stolen, there will be costs to your organization. I am not stating what your policy should be, I am only confirming that directing your people to approved suppliers is a good habit. I will add that many limo companies and rental car companies are trying to play catch up, and they too are an option that should be considered.
Is this addressed in your travel policy? Do you tell your travelers which process to follow, which suppliers to use, and which payment system to utilize? The recommended process, your preferred suppliers, and why should be identified. As always, engage your travel squad (a team involved the most in travel who helps evolve your travel program including legal and HR staff). Then, finally, tell your TMC what to enforce.

Wednesday, May 21, 2014

Do We Deliver Freedom to Our Customers or a Capability or Both?

I was asked recently by a friend of mine, who also happens to be business consultant, if ours is a freedom sale or a capability sale. A freedom sale allows the customer to gain freedom from the supplier by having them do something faster, better, and cheaper.  The capability sale brings a unique solution to a problem many customers have.
 
Your travelers and our agents would probably answer a freedom sale as we deliver a better trip faster, better, and cheaper than the traveler could deliver on their own. Your Travel Managers and our Account Managers would respond that it’s a capability sale because we are helping to create and manage a travel procurement system that the company neither has the expertise, data, personnel or time to do completely on their own. So the freedom sale is transactional (trip management) and the capability sale is the part that we do that is strategic (systems development or travel management) for Travel and Expense.

What about both? What we know is that when both are leveraged together well, the results are exponential – and it is exciting.  The right system is developed based on the right best practices, tools, and company culture, and as a result the transactions come out better because both the company and the traveler are as happy as possible.  So the key here is to make sure you are leveraging your TMC’s support on the freedom sale side (trips) and the capability side (travel). What we often find is that because travel management systems and processes are so unknown to so many, that the focus is usually solely on trip management.
Our focus for years has been on the development of a healthy travel management ecosystem that balances the desires of the company and its travelers. Guidance, training, education and evolution are at the core of the travel leadership consulting we intend to deliver to those who seek this capability. A great example of this is one of our customers who saved $250,000 out of its 1.5 million dollar travel budget and gained control and support in the process. Got freedom and capability?

Tuesday, May 20, 2014

How Do You Best Survey the Health and Effectiveness of Your Travel Program?


I would like to share that when surveying or measuring your travel program you should consider two best practices we have found to enhance this process. One, collect a net promoters score ("On a scale of 0-10, how likely would you be to recommend our travel program to a friend of colleague and why?"). Asking this question gives you a score to work on, it is one question so your number of respondents will increase, and the why at the end of the question allows for comments about anything that is very important to consider (good or bad). Then number two, separate the results into two different groups. Those who manage travel (the line item such as finance, your travel manager…) and those who take trips (the road warriors). The scores will be different as both parties have different goals for different reasons. Consider the opinions of these different sources will develop a more effective and logical set of follow ups. I remember being in high school and I must say that our cafeteria had the best food I had ever eaten. I remember the German baker and the amazing lunch ladies that would pump out amazing food on a dime. They never got any kudos from the students because we were all forced to eat there every day. They did win awards from the school district for their quality and value. So the scores will be different for legitimate different reason that you need to evaluate. We too have begun assessing survey results in these two buckets.
 
Learn about this and 13 other Key Performance Indicators to Determine the Health of your Travel Procurement Program at our webinar next week on May 29. Register for the webinar by clicking here.