Strategies of Corporate Travel Management purchases
Corporate business travel management implies cost control as well as taking advantage of new possibilities for business. That is why many leading international companies concern business travel expenses as investment aiming to maximize return on investment (ROI) and profitability. As a result purchasing of such services has a number of peculiar features.
- Business travel management services “help” to do a business provided they are the “right” choice, if not ROI can be negative. Hence one should be very careful purchasing the services;
- Procurement manager must consider opinion of many people that influence the decision incl.:
- close cooperation with HR Manager regarding questions of service, policies, limits and security of employees during business trips;
- close cooperation with Financial Department regarding saving opportunities, optimization and regulation which cause financial effect;
- the biggest opportunity for optimization and saving is inside of your company. Still you need a competent and experienced partner and up-to-date travel management technologies to realize this opportunity. In other words a question of purchasing becomes a question of searching for a Strategic Partner;
- the services offered at the market vary greatly. This diversity is difficult to organize and identify till the moment the service is used. Hence it is extremely difficult (almost impossible) to use principle of “comparison of two apples”.
In the presentation attached you can find some strategies and instruments used by successful procurement managers in order to purchase travel management services.
This presentation was introduced for the first time February, 28 2011 at the Travel Club event organized by American Chamber of Commerce.