Business travel consultants
throughout the regions, varied travel policies and levels of compliance, inconsistent data and struggles with the ‘what’s in it for me’ questions at local level. “Each region will have different policies,
regulations, cultures and different local agreements with suppliers,” says Reynolds. “This is when they benefit by consulting with someone that has a holistic view of the market, who understands the local nuances and who is able to challenge local practices and realistically align the programme, both internally and externally. Many corporates do not realise how difficult globalisation is for companies with decentralised, non- mandated cultures.” Chris Pouney of
Severnside Consulting also believes it’s no longer all about cost savings. “The pendulum is starting to swing again towards staff welfare, productivity and value, rather than the ‘slash and burn’ mentality we saw in 2010,” he says. “There seems to be a feeling that we have reached the bottom and are looking to build programmes to support sensible and sustainable future growth.” It’s often the mid-sized companies that
blame when something goes wrong. For Mark O’Brien, EMEA director of TCG
Consulting, data is the big thing. “Data is always a challenge and will remain so,” he says. “The majority of our client work commences with an assessment where we analyse all available data. Where data is not available we are able to use benchmarks from clients of a similar programme maturity, or the same market or spend.” All companies needs to justify outlay on
“It’s often the mid-sized companies that benefit most from a consultant as large companies have someone
dedicated to look after travel and SMEs don't have enough spend to worry about”
such services, so it’s not surprising that some consultants offer a service guarantee or ROI promise to attract customers. “I have a no risk guarantee in that I will not charge a fee unless a project is delivered and is running efficiently. In some circumstances I do not charge a fee unless I deliver to the 100 per cent satisfaction of the client,” says Dennis Bailey. Chris Pouney points
out that a lot of what consultants achieve in terms of service benefits and internal efficiencies can be hard to monetise
and are often dependent on a client’s willingness to embrace change. Nevertheless, a number of the ‘big boys’
stand to benefit most from the magic touch of a consultant, says Dennis Bailey, as large firms tend to have somebody, internally or externally, who looks after travel for them, while many cases SMEs don’t have enough spend to worry about. “It’s that elusive gap in the middle that probably needs the most help, but often they don’t realise there is an opportunity to be exploited,” he says. Some consultancy projects are very much
company’s outsourced travel manager service is also popular to cover leave or provide support at peak times, she says. HRG Consulting, meanwhile, has doubled
in size over the last two years, with clients looking to make savings at the forefront of that expansion, with duty of care and policy management the current growth areas. “With businesses increasingly globalising,
the sheer complexity of travel programmes means you need to outsource to an expert with the tools to manage it,” says Paul Dear, director of HRG Consulting. “The expertise required to do a global airline deal, for example, is enormous. It’s not physically possible to have all the knowledge in one place. The complexity of the market today lends itself to outsourcing to category experts,” he explains. Chris Reynolds agrees, claiming that the
consolidation of several travel programmes across one company is a prime case for taking on a consultancy. Challenges include different accounting and reporting systems
short-term and on a small scale, with Chris Pouney citing the example of a two-day project he’s worked on to review a company’s £200,000 a year travel programme, set a new policy, identify quick savings and educate the main stakeholders. In contrast, some consultancy projects can
last months or even years where global travel programme reviews or implementation projects are involved. The way fees are charged to clients can vary too, from a daily rate to a set fee or a capped fee. It’s inevitable that consultants encounter
the same problems time and again when they start getting to grips with a client’s travel programme. Tony Pilcher names ineffective use of management information, a lack of communication about policy or supplier changes, and trying to implement an online booking tool without engaging the IT department as common errors. A further issue, he says, is a lack of internal
knowledge and structure that results in everything being left to a TMC that gets the
out there eagerly quote figures, with TCG Consulting claiming an average 28:1 return on investment, CWT Solutions Group delivering a 15:1 average and HRG Consulting an average result of 11:1.
case study
3SIXTY Global was hired by an organisation within the NHS that recognised that its many suppliers, quality of data and varying methods of payment resulted in poor transparency and limited savings opportunities. A full review was undertaken, examining total spend, incumbent suppliers, booking, approval and payment processes, reasons for travel, policy compliance and reporting requirements. A detailed report included a review of one-stop shop solutions, which ultimately led to the hiring of NYS Corporate as the organisation’s travel management company and a 12-week implementation plan was launched. It included the provision of online booking tools for air, rail and hotel, as well as an offline solution to manage more complicated journeys. The project has given the organisation complete
transparency of its travel spend, the ability to measure its carbon footprint and has significantly reduced administra- tive tasks. On an annual spend of £1.5million, savings are anticipated to exceed £200,000 in the first year, with additional administrative savings in the region of £80,000. “The results so far have exceeded our expectations,” says
the client. “The quality of the reporting has enabled us to measure and manage policy compliance as well as gain a greater understanding of the reasons for travel. The new solution has removed many inefficiencies, allowing our employees to utilise their time more efficiently.”
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