The Knowledge > Buyer perspective
Why outsource… YOUR TRAVEL PROGRAMME?
Robert Daykin of the Corporate Travel Partnership questions the need to outsource your company travel programme
SOMETHING that has puzzled me for years is why organisations outsource their travel programme to a third party which is part of the supply chain, rather than have their own employees manage and operate it. Yes, I know that ‘outsourcing’ is all
Robert Daykin DIRECTOR, THE CORPORATE TRAVEL PARTNERSHIP (CTP) Following a 20-year career in sales and marketing, Robert moved into travel management when he developed and implemen- ted the T&E category at The Littlewoods Organi- sation in the UK, and The Halliburton Company for the Europe/Africa region. In 2000 he established his own consultancy practice, travelConsult, before joining with two other T&E specialists in 2002 to form The Corporate Travel Partnership, now known as Corporate Travel Partners Limited – The CTP. The CTP is a specialist category management company, providing consultancy, interim management, and outsourced travel management services.
the rage and the ‘if it isn’t core why are we doing it’ argument. For some categories it might make sense, but travel is such an emotive category. The real value from the travel category is derived from controlling behaviour at the point of purchase and having efficient internal processes, rather than doing deals with travel agents and vendors. Surely then it deserves better than to give it lock, stock and barrel to a third party to manage and operate, and one who is part of and benefits financially from the supply chain. That third party may have an agenda that isn’t in the best interest of the organisation. Some conflicts of interest are inherent. The travel category is truly dynamic and different from other more stable categories. There are so many real ‘shareholders’ within the organisation, including not only the travellers and bookers, but also budget holders, as well as the managers responsible for health and safety, HR, IT, Finance, etc, all of whom have a real interest in it. Satisfying a multitude of internal stakeholders is no easy task. Understandably, companies are concerned about not wanting to be a travel agent or not being able to design technology to undertake travel, but
“Companies are concerned about not wanting to be a travel agent or not being able to design technology”
there is another way where you don’t outsource it all, one that delivers all the requirements for the business, the travellers and the interested stakeholders. Here are three alternatives you might consider. The ‘Be Your Own Boss
and Run the Whole Show’ model: In the USA, the
Corporate Travel Department (CTD) model has been working since 1998 when Republic National Bank of New
York attained CTD status. This model gives ARC accreditation to the organisation itself, much like a travel agent here needs BSP accreditation. There are now around 130 CTDs in the USA. They range from organisations with less than $1million travel spend to those spending many hundreds of millions. The ‘Be Your Own Boss in Association with Others’ model: This model is probably best illustrated by TravelpoolEurope (TPE), which has been operating since 1991. A number of organisations with the same outlook and vision came together to create their own travel function. It is not a travel agency – there is a noticeable difference. TPE is a not-for-profit shared service centre for corporate travel, covering the entire travel and expense management process, owned by its members. The members together create the vision, determine its direction and benefit from it. The ‘Be Your Own Boss, but in Association with Supplier Partners’ model: You run the show, with the supplier partners firmly in the background. A hybrid if you like, similar to the ‘rent-a-plate’ model in the USA that has been operating for many years. The organisation’s own employees provide the front-of- house interface with internal customers, together with the day-to- day support and management, while the supplier partners provide the booking platforms, technology, IATA licence, and BSP functionalities, etc. In all these cases, size of spend wasn’t the organisation’s issue. It was about being in control and delivering value. These models all have one distinct feature – the stakeholders, including senior management, have a clear picture that their organisation ‘owns’ the travel programme and is in control. The entire programme is focused
on the organisation’s specific requirements and totally aligned with its goals. This delivers all those benefits, from service provision, support and cost control, that create real value. No ifs, no ands, no buts!
JARGON BUSTER ➔ ACRONYMS: sadly you just can't get away
from them in the dynamic world of business travel. So to help you out we've listed some of the most commonly used ones below, just so you don't get your Hotel Booking Agents confused with the Hospital Broadcasting Association.
ACFO Association of Car Fleet Operators ACTE
ADR average daily room rate APIS ATOC
BAPCO Association of Corporate Travel Executives
Advanced Passenger Information System Association of Train Operating Companies
British Association of Professional Conference Organisers
BAR best available rate BTA BTC
business travel agent business travel centre
CDW collision damage waiver CRM CRO CRS CSR
DDR daily delegate rate ETES end-to-end solution FFP
customer relationship management central reservation office central reservation system corporate social responsibility
frequent flyer programme
GDS global distribution system GTMC
HBA hotel booking agent HBAA IATA ITM KPI LRA MI
Guild of Travel Management Companies
Hotel Bookings Agents Association International Air Transport Association Institute of Travel & Meetings key performance indicators last room availability
management information
MIA Meetings Industry Association MPI
OTM online travel management PNR passenger name records RFP ROI SBT SLA
request for proposal return on investment self-booking tools
service level agreement
SME small and/or medium-sized business/es TEM travel and expense management TMC travel management company
Meetings Professionals International
8 I THE BUSINESS TRAVEL MAGAZINE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104