Smart travel
(China Daily)
Updated: 2006-02-16 11:02

Travel managers need to take on a number of roles in today's dynamic business environment. They help their organizations provide cost effective, safe and reliable travel to employees. They also look for savings opportunities, maximize control and compliance, and collaborate with travel management companies to achieve these objectives.

Depending on an organization's size, a travel manager may be the only dedicated resource focusing 100 per cent of their time on travel management. Some travel managers spend a portion of their time managing travel and the rest handling other responsibilities.

There are several key goals travel managers should always focus on, regardless of their organization's size or the availability of resources.

Goals and objectives

It is the travel manager's role to work with others within the organization to determine overall travel objectives. This can be at the macro or micro levels. Senior management might want to shave 10 per cent off the annual travel budget, for example, or employees who frequently travel might be looking for alternative options because they are disgruntled with the customer service at a particular hotel. Regardless of the goals or objectives, travel managers need to come up with plans for delivering tangible results within a defined time frame.

Travel policies

If an organization already has a travel policy, the travel manager's role should be to ensure that this policy remains up-to-date. Effective policies should reflect today's business travel requirements, and managers need to make adjustments and recommendations whenever necessary.

If an organization does not have a travel policy, the travel manager should create one that provides clear and concise information on how travel should be arranged, undertaken and reconciled.

The travel manager's role is to put forward recommendations they feel best suits their organization's culture and business needs. Some organizations take the view that travel costs are incidental, and therefore place the focus on core business priorities. Other organizations might have a tight mandated policy, however, where disciplinary action is taken if policies are breached.

Once a policy is established, travel managers need to ensure all personnel involved with travel understand it. This requires effective communication across a number of channels such as presentations, emails, or travel pages on the Intranet.

Efficiency

Travel managers should also communicate to employees who they should be using to arrange travel. A list of appointed travel suppliers should be provided in addition to relevant information that travelling employees would generally need. These lists should be appended to the policies, but not in the actual policies, because suppliers can change over time.

The following details are also worth considering for inclusion on the appended list:

Travel management company names and contact details of reservation consultants and team leaders. Additional information, such as account manager contact details, can also be provided. However, travel managers shouldn't provide too much of this information because employees with concerns should be directly contacting travel managers.

Any airline deals that have been specifically negotiated for the organization. For example, all air travel between Beijing and Hong Kong should be booked with ABC Airlines utilizing the negotiated J or Y class fares whenever possible.

Any appointed accommodation providers categorized by country/city. Include contact details and negotiated room rates and what these rates include, such as Hotel XYZ's inclusion of a full buffet breakfast.

Contacts for any appointed car rental agencies and negotiated rates.

Contacts for appointed credit card providers.

Processes for making actual travel arrangements. This can vary from making bookings over the phone through travel consultants or by using approved self-booking tools.

Also include information on policies for ground transport, or what to do if certain hotels are booked.

Information about how employees should reconcile travel is also important. For example: "Travellers must submit an expense claim form supported by receipts by the 12th of every month."

Relationships and contracts

Travel managers need to manage relationships with all travel-related services providers. This includes sourcing, appointing service providers, articulating organizational business travel needs and setting expectations with all service providers.

For airlines, hotels and car rental agencies, travel managers need to understand their organizations' volumes and specific business needs when negotiating with providers. With airlines, for example, an organization might do a lot of long-haul international travel, resulting in the need for negotiated fares with airlines in their business and first-class cabins.

Once service providers have been appointed and travellers are aware of who these suppliers are (through effective communication strategies), travel managers must continue to manage ongoing relationships with providers.

This involves ongoing monitoring of volume commitments, addressing traveller needs and concerns, and working with service providers to identify opportunities for improvement.

Handling change

New generation aircraft, emerging airline models, new hotels and the changing role of travel management companies are just a few examples of the many changes now taking place in the travel industry. Travel managers therefore need to be able to manage operations in these times of change.

This represents a fundamental aspect of programme success, and is an area that many organizations often overlook. Conscientious travel managers ensure effective processes will ensure critical aspects of their agreements and contracts are communicated to stakeholders. Failure to do this properly could undo all the work done in selecting good travel partners.

Measuring success

Once a travel programme is successfully executed, travel managers should monitor, track and measure every aspect of their organisations' travel portfolios. On a regular basis, perhaps at least once a year, travel managers should be seeking answers to several key questions:

Are travellers happy with the services provided by the travel management company, air, hotel, car rental and/or credit card providers?

Is the organization achieving, exceeding or not reaching the volume commitments that were anticipated for each service provider contract term? And how will the answers to these questions impact future negotiations?

Are the travel strategies meeting the organization's overall business travel goals and objectives?

Travel managers are multitalented individuals with experience in administration and procurement. They should also be excellent communicators, and should possess the analytical and strategic skills necessary for continual improvement. Travel is fluid and changes constantly, and travel programmes benefit from people who can manage them from every angle.