THE DEBATE
Has globalisation had its day?
Stitching together a global travel programme where all processes, prices and technology operate as one is proving challenging, with some corporates opting for regional TMC solutions instead. Two experts debate the pros and cons
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THE BUYER MARGARET BIRSE
his is an interesting one and I don’t think it's one where we can say that either global or not global is 100 per cent right. My view is the programme must be
global but the supply chain does not necessarily need to be and that a global supplier may in fact be less rather than more beneficial. When it comes to a global TMC offering I don’t
believe one actually exists. In our experience the current 'global' solutions have a global presence but do not provide a global solution. For me, a global solution means that you have the same customer experience across the various geographical regions. Clearly, there are differences to a booking in Hong Kong versus a booking in London but the two employees should have the same experience. This isn’t what we have experienced in the past but it is what we’ve got now using a leading TMC who holds 'global responsibility' for ensuring the look and feel across the regions is aligned. My belief is that the current solutions lack the
transparency needed and our experience has been that they operate in silos with the customer doing most of the work to make the solution 'global'. With a regional solution the offering is very clear
that it isn’t global but the programme is and there- fore the advantages a regional has – ie, strong relationships with local airlines, hotels etc – can be used to drive savings or service improvements. I know from experience that if I want to drive
compliance I better recognise the fact that our regions are very different and if I tried to put a one- size-fits-all solution in front of them the job of ensuring compliance will be much more difficult. By using a 'glocal' approach we are confirming we
understand the region is different but ensuring it fits within the global programme with the customer experience balanced with cost savings. As I said at the outset, I don’t think there is a definitive right or wrong on this one but I don’t think we should simply accept that bigger geographical coverage equals better results. It can be done without this and my view is the benefits of working with regional players outweigh the effort made to make this work.
“ My view is the programme must be global but the supply chain does not necessarily need to be ”
MARGARET BIRSE Managing Director, Global Travel Services, Serco
Canadian born Margaret Birse was relocated by Serco to the UK in 2002 in the role of global travel director. Margaret has over 30 years of experience in the travel industry, primarily in senior roles within business travel management. Margaret founded the North American travel solution and was instrumental in developing solutions globally.
IAN FLINT Managing Director, Inform Logistics
Ian Flint’s industry experience spans travel operations in the UK, USA and Australia, having in the past held senior positions with major travel and hotel companies. Ian became an independent travel management consultant in 1989 and soon gained a ‘blue chip’ client portfolio globally.
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THE CONSULTANT IAN FLINT
ravel programme consolidation has always been considered best practice for travel buyers and although sceptics might think global has had its day, the
appetite for consolidation has become sharper among many companies I know and work with. In my mind, the main driving force behind
consolidation is transparency and the need to standardise travel management, authorisation procedures and supplier programmes. Equally important is consistency in the application of technology, reporting and travel policy which when combined, provide clear accountability for service delivery. A travel management
consolidation programme should be the convergence of processes and components of a well managed travel programme that can meet a company's needs on a local, regional or global level. Having said this, it is important to understand
what is meant by global consolidation. How one consolidates suppliers often depends on the culture of a company, their ability to mandate a programme and the current degree of fragmentation. While some choose to consolidate through one global provider, others find it possible to have an effective global programme with a small number of regional suppliers all with standard SLA/KPIs linked by a consolidated reporting system. I have one client who turned to consolidation to
help gain greater control over travel and improve security and safety for their travellers. Reducing the number of travel suppliers while being linked through a common platform has proven highly
the culture of a company ”
24 THE BUSINESS TRAVEL MAGAZINE
suppliers often depends on
“ How one consolidates
successful and cost efficient. What is good for one is not always good for another. However, I do not believe in stitching together regional and national deals with suppliers and intermediaries without some form of high level supervisory control, particularly if one takes into account Duty of Care and safety and security needs. Travel suppliers still need to think globally and not
provincially as many are often market driven which ultimately devalues the client in the eyes of some regions. If consolidated correctly, a supplier consolidation programme can bring tangible benefits in terms of savings, service and security.
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