OVERVIEW


T


here is a scene in the film Dead Poets Society where Robin Williams’ teacher character makes his students


stand on their desks to see the world from a different perspective. It’s a pivotal moment in the film, when the young men realise the possibilities and changes that lie ahead of them. Travel buyers may have had a similar moment of realisation in the depths of the recession – that although business travel had to continue, it needed to be approached in a different way.


Rene Stynen is head of corporate payment solutions at Mastercard Worldwide. He says: “Induced by the recession, many companies have changed the way they work and have more stringent policies. In some cases we have seen the increase in usage of corporate card systems as a payment mechanism because it is more controllable. People are looking at how they can save and get visibility.” Travel buyers reflect the view


that companies have been looking for ways to cut costs without stopping travel. As one buyer puts it: “We’ve tightened our travel policy over the last few years, but if you stop travelling then you stop business – so we might think twice about training events, but we don’t stop sales people travelling.” Helen Mason, director, senior


commercial card product manager, EMEA, for Bank of America Merrill Lynch, agrees there has been a change in focus for corporate travel spend. “There has been a level of uncertainty in the overall market, and more of a spotlight on the cost of travel,” she says. “People are asking if it’s a necessity – do they need to be making a trip or can they talk over the phone?” Kathleen Hall-Zientek manages


travel services at Moog Inc, a precision control systems manufacturer headquartered in New York. She lists several key reasons for running a corporate card programme: “Data consolidation; drilled-down management reporting


In association with


you want from your corporate card programme, and David Smith, head of T&E (travel and expenses) product management at Barclaycard, says one current trend sees buyers asking more about virtual cards: “Clients are getting a lot more educated about the type of product on the market. A few years ago they didn’t ask about virtual products – now they are.” Virtual cards, also known as 'single use' or 'single account numbers', have been around for years. Airplus launched its virtual card seven years ago – but it is only with workforces becoming more mobile that such cards have really taken off (see virtual card feature, p12). A virtual card is a unique number


generated for a specific purpose, sent to the traveller by email for one use only. They are popular because you don’t have to issue cards to every traveller, you have more control over spend, and you reduce the chance of loss and theft. Buyers


to identify supplier market share and negotiating opportunities; a segregation of meeting-versus- corporate travel spend by mandating usage of the proper card; and convenience for the corporate traveller to use one card for 99 per cent of their travel expenses.”


MANAGING RESOURCES For anyone looking at introducing a corporate card programme, the process involves several different departments. Having a programme is not just about lending, it’s about managing. At the negotiating table there will be someone from procurement and a financial director, and sometimes human resources get involved if there are changes in policy. Bank of America’s Mason says working closely with buyers is key for a card programme to work: “We become the experts who work with travel managers and help them overhaul policies.” The request-for-proposal process is the perfect time to nail down what


BENEFITS OF A CORPORATE CARD PROGRAMME


• VISIBILITY The ability to account and monitor individual travel expenses; online reporting.


• COMPLIANCE Cards can reduce misuse as you can be alerted to any out-of-policy spend.


• SECURITY Traveller tracking; travellers don’t need to carry cash; you have the power to enable cash withdrawals in emergencies.


• COST SAVINGS Detailed information, so expenses can be examined and cost savings identified.


• TIME SAVING Helps streamline the processing of individuals’ expense receipts.


• CONTROL Buyers can manage and adjust individual card limits and view transactions.


• BRIBERY With the introduction of the 2010 UK Bribery Act, it has become essential to have records of any ‘gifts’ received and exchanged in a transparent reporting system. Informing staff of your policy on entertainment and knowing your T&E spend while being able to provide this information helps in any defence.


• REWARDS Benefits in the form of annual rebates or cardholder rewards.


2013 Buying Business Travel • 7


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