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Working with your Corporate Travel ProvidersCarlson Wagonlit Travel
Margaret TangenSenior Director, Program ManagementCarlson Wagonlit Travel
Candace HaideyManager, Business Development
Carlson Wagonlit Travel
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Where we are headed today
• Economic context• Key areas of focus• Putting your program together
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Economic context: Opportunities and challenges
• Global economy starting to recover; though recent events show fragility
• Business travel is rebounding but heavily dependant on the economic recovery
• Energy costs high and volatile• Unpredicted events continue to impact
the global economy
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Key areas of focus: What can you do to succeed in these conditions?
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Peer Priorities
Source: CWT Travel Management Institute survey of 187 travel buyers worldwide, September – November 2010
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Air: An ongoing dance
What you should knowIncreases in air fares; higher than planned – up 16%YTD vs. 2010*Oil priced 23% higher YTD vs. same time last yearEvolving supply and demand pictureHigher fares and fuel surcharges
*domestic economy class, CWT North America clients
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Hotel: Intelligent defence
What you should knowSuppliers have pricing power and are raising ratesOccupancy is a real challenge in key NORAM markets
E.g., Toronto at 68% for 2010, NYC at 80.9%Construction pipeline virtually nonexistent in NORAM
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Ground: Emerging opportunity
What you should knowLimited focus on this discipline unless air and hotel have been fully optimizedModerate price decreases in some marketsHybrid vehicles are still limited
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Meetings and events: Rebounding and evolving
What you should knowGrowth in Meetings & Events (M&E) activityIncreased focus on Strategic Meetings Management (SMM)Greater focus on risk managementInterest in synergies between M&E and transient travelCost per attendee has increased as suppliers (hotel, air, etc.) raise prices
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Technology: Fads vs. foundations
What you should knowA lot of buzz; no “one-size-fits-all” approach for all companiesA wide rage of technology to choose from Advances in technology make it easier to communicate with travellers but also increase the travellers’ access to information
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Traveller compliance: An area of significant savings
What you should knowA lingering challenge for many: rated the #1 2011 priority by Travel ManagersTechnology enables tracking and compliance enforcementCommunicate compliance results to senior management
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Expense management and reconciliation: Getting the complete picture
What you should know:50 percent of travellers say that out-of-policy bookings are not followed up on by management*Companies are recognizing that to boost compliance and achieve greater savings they need to focus on their T&E policy, their internal processes, and the systems that they useAlignment between your TMC and expense management system captures a clearer picture of your spend, increasing your leverage during supplier negotiations
*CWT Travel Management Institute Study
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Putting your program together
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Putting the pieces together
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Traveller compliance: Best practices
Best Practices:•Engage management throughout the organization•Provide travelers with clear guidelines•Promote compliance through training and communication•Drive compliance at the point of sale•Track progress and correct where needed•Benchmark industry performance
Case Study:Global Energy Leader needed to optimize its hotel program.
Solution:•Created communication plan to get stakeholders more involved and coordinate better processes•Engaged in market-specific discussions with suppliers•Implemented Policy Messenger to communicate and reinforce the travel policy
Results:•Improved communication and stakeholder engagement•Improved hotel coverage•Average daily rate decreases over the last three quarters•7 percent increase in program compliance
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Supplier Negotiation: Best practices
Best Practices:•Consolidate spend data•Understand traveller needs and behaviour•Design an effective travel policy•Focus on negotiations that are right for your company•Measure and track traveller compliance
Case Study:Industrial manufacture’s air program was loosely managed and needed help building a stronger program
Solution:•Conducted an assessment of the client’s current program•Highlighted the client’s optimal preferred carrier strategy•Recommended that the client enter into strategic relationship with an additional airline
Results:•Increased the number of discounted markets by 12%•Saved an additional 29% on their overall air spend
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Expense management and reconciliation: Best Practices
Best Practices:(Place holder for additional content)
Case Study:(Place holder for additional content)
G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference
Thank you.