“Communication is the key to implementing any kind of change. If employees understand why it is being done and what the benefits are then they are more likely to comply with the policy“
in which they were asked to support Carillion in its bid to improve efficiency. Most were happy to reduce their rates based on the extra volume they would receive from a mandated programme. Carillion was able to put 40 per cent of its
hotel spend with one major hotel chain and this resulted in a deal being struck in late 2009 to include an upfront discount.
Step 4 With rail, Smith took a different approach as “there was not much fat to skim off,” explains Omega’s Louise Fletcher. ”Here it was about education as people are booking late and rail prices are rising,” adds Smith. She worked with internal communications to
send out various guides on how to buy smarter, including the benefits of booking early and the difference between the ticket types – advanced tickets and anytime tickets, for example. Webcast sessions were also held with bookers with a strong focus on rail. “The message was to empower the bookers
to challenge the travellers and push policy. We also gave them tips on how to do it,” explains Smith. Carillion also introduced pre-trip approval on any rail spend over £150 to match the approval for air. “It seemed silly that you couldn’t book a flight over £150 without approval yet there was free rein on rail travel,” she explains. Rail was also promoted heavily as a lower carbon alternative to flying domestically. “We educated employees on the benefits of rail travel, such as being able to work on board,” explains Smith. The strategy worked as last year Carillion bought more rail tickets but for less. Rail ticket volume increased by 25 per cent but spend reduced by two per cent.
Step 5 Group conference and events was
the next low hanging fruit and here Smith made amazing strides. “We did have a problem with people getting quotes directly so we’re constantly telling bookers not to do that and to
book through Omega,” she says. Adds Omega’s Fletcher: “Employees were booking haphazardly and overnight we stopped it.” As a result of introducing an approval process, Carillion witnessed a 78 per cent drop in spend. “It made them say, ‘Is this meeting really necessary?’,“ says Smith. The new procedure has just four very senior people who can approve meetings spend and employees have to justify the reason for not holding the meeting on-site. Carillion has also recently introduced an online booking system for meeting room facilities at four of its main sites.
Step 6 Looking to
“It seemed silly that you couldn’t book a flight over £150 without approval yet there was free reign on rail travel”
the future, there’s more on
the agenda. The travel department still runs annual roadshows at offices to talk to bookers about the benefits of booking early, and have recently established a travel focus group. This is made up of ten key bookers throughout the company and in August Carillion began a two-month trial of Evolvi’s rail self-
booking tool with 48 hand-picked bookers. ”I’ll look at all the MI before and after and
make a decision,” says Smith. “I’m very excited by the rail SBT pilot scheme,” adds Omega’s Fletcher. Smith believes that by having an SBT it will encourage people to book earlier and bring the average ticket price down. Fletcher is also hoping Omega can tackle the high-touch area of cancellations and amends as Carillion clocks up some 700 rail cancellations and amends every month. “It isn’t a straight- forward purchase but it’s an interesting time to trial the product,” says Fletcher. Carillion has set a goal of a 75 per cent adoption rate on the new rail tool. “I’m happy with 28 per cent savings over the
year,” concludes Smith. She still reports weekly to senior management and is still looking at ways to keep costs down in 2010, mainly through deals with preferred suppliers and keeping up a high compliance to policy. Things have changed and travellers realise that they have to cut down and keep it all in place. “Communication is the key to implementing
any kind of change,” says Smith. “I believe if employees understand why it is being done and what the benefits are then they are more likely to comply with the policy.”
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