In Managing Travel Services - Part 1, I gave an overview of Procurement getting involved in this commodity. Here in Part 2, I'll get into more specifics.
What will Buyers be looking for in a travel services RFP and what will end users expect as a result of a travel services initiative?
1) Travel will be handled by one agency. The company may elect to hire its own travel agents, creating an in-house agency or may decide to hire an outside agency. A travel agent would then likely be located at one of the company's locations.
2) Standards and price parameters will be negotiated. Travel will have to be booked a certain number of days in advance to ensure the best rates. A certain level of hotel as well as acceptable room amenities and perks will be decided upon. It is likely that there will be a preferred national hotel chain identified and a couple back up chains utilized depending upon geographic availability. (Car rentals will be handled in a similar manner.)
3) Volume discounts and rebates/rewards points programs will be defined and put into the contract.
4) Savings numbers will be projected and measured in the months to come.
5) Implementation is very important. In order for the initiative to be successful, the new procedures (and their benefits) must be communicated effectively and repeatedly to end users. For companies serious about meeting their cost savings objectives, there must be fairly stringent policies for how to handle people who don't follow the new procedures. A typical policy would be a warning the first time and then non-reimbursement the second time for an employee who books travel through his or her own channels.
You're very knowledgable and articulate.
Posted by: Greg | April 26, 2006 9:18 AM | Permalink to Comment