The Knowledge > Step-by-step guide


How to... MAKE THE MOST OF YOUR TMC


There’s a general consensus that too many corporates are failing to exploit their TMC’s expertise when it comes to driving down costs. HRG’s Ian Windsor advises buyers to take advantage


COST control remains a top priority for many businesses with procurement departments looking for any opportunity to save money on their travel spend. Making the most of the knowledge and relationship with a TMC is one way that is being increasingly recognised. “Saving our clients money is no longer


Ian Windsor MANAGING DIRECTOR, HRG UK Ian Windsor began his career with Hogg Robinson (Travel) Ltd in 1976 when he joined on a trainee programme, working his way up through the company from junior business travel consultant through to head of client services in the UK. In 2006 he was appointed to his first major international role as operations director Europe looking after HRG’s European Service Centres, then was appointed managing director of European Multinational Services in 2007. The following year he was appointed managing director of HRG UK.


just an option, it is a given,” says Ian Windsor, managing director of HRG UK. “Cost reduction is achieved through a number of simple steps, all of which deliver greater efficiencies as well. “For many of our clients we create and


then deliver a bespoke savings plan. This will detail our advice to clients on how we will save them money. We demonstrate areas in which we can guarantee savings. We provide our commitment to their business in the long term, with details of how we will work with them to manage the travel business and develop it favourably for us both,” says Windsor. “Following these steps below will almost certainly result in savings,” he continues. “Businesses are looking for a good return on their travel expenditure by making it go further and spending it in smarter ways. We play a big part in achieving this for our clients. TMCs almost always find lower prices and provide better value when you consider the amount of time that travellers spend hunting


“Quality travel data can be used effectively to renegotiate better supplier deals, especially for hotel


programmes”


for a deal.” Read on for Windsor’s step-by-step guide to identifying where there are savings to be made.


Step 1 At the very outset,


corporate travel policy best achieves cost savings by matching your business objectives with the parameters of your travel policy. TMCs can


review your company’s data over a specific period of time and highlight missed opportunities – or the amount of money that you could have saved. For example, you may be purchasing travel tickets without using them or booking on uncompetitive routes.


Step 2 Technology plays a funda-


mental part in controlling compliance and enabling tighter control and


visibility of complex travel programmes. Working with a TMC that focuses on policy management and has reputable products to monitor progress will guarantee increased savings. These tools can identify traveller behaviour within your company and point out the specific key areas of focus, as well as benchmark airline and hotel deals against other suppliers.


Step 3 Corporates must recognise


the importance of pre- and post-trip reporting. Pre-trip information can be used to challenge why employees are travelling and to identify patterns of behaviour, such as whether some travellers wait until the last minute to book or are prone to changing their reservations. Post-trip information can be collated, consolidated and analysed to expose overall inefficiencies. Pre- and post-trip reporting can be presented in an easy-to-use online interface and can help deliver total trip transparency, which means further savings. The best reporting services very clearly show spend comparisons, trip durations, and can easily be converted into PowerPoint for internal presentations and reports.


Step 4 Quality travel data can be


used effectively to renegotiate better supplier deals, especially for hotel programmes. With a TMC’s support, corporates are able to find and choose the best suppliers to reach both service and cost savings goals. It’s best to


choose just a small number of suppliers to work with to get the best agreements. However, this is only achievable if the corporate has a good relationship already in place with its airlines and hotel partners. Successful negotiation is underpinned by an ongoing loyalty as everyone looks to the future.


Step 5 The ability to choose from a


variety of travel options is essential in order to identify the lowest cost for a particular travel requirement. Some TMCs have the capability to act as a one-stop-shop with customised service including online travel reservation software which searches for the lowest available fare that is aligned to a specific travel policy. This software presents creative ways to manage travel spend, including bespoke advice and data on whether rail, air or road is the most suitable and cost-effective option for your specific needs.


Step 6 Face-to face meetings are


still considered an important part of sealing a business deal and generating new business, but videoconferencing lends itself well to internal meetings and helps reduce your company's carbon footprint too. By analysing your travel patterns, you can find out who is travelling, where they're going and who they are going to see to understand if it makes sense to use alternative means of communicating with colleagues to increase cost savings.


10 I THE BUSINESS TRAVEL MAGAZINE


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