Implementing a Successful Travel Programme

2024/09/11

A leading Network Services firm, recognized for its comprehensive solutions, caters to the diverse needs of the Network Life Cycle. Serving an elite clientele that includes top Telecom Operators, OEMs, and Tower Companies, the firm is a trusted partner in the industry. Their total annual travel expenditure, excluding MICE (conferences and meetings), is approximately INR 30,000,000 (Thirty Million) per anum on flights and hotels.

Overview

The primary objectives were to:
• Implement a cost-effective fee/fare.
• Improve transparency using management information systems (MIS).
• Create a tri-party agreement with airline partners.
• Simplify the booking process and boost operational efficiency.

The overall goal was to consolidate and centralize their travel arrangements into an official travel programme to enhance booking efficiency and cost saving.

Challenges

During the initial discussions about launching the travel program, Marvel Travels – Corporate & Leisure (MTCL) discovered a lack of proper controls over travel and accommodation expenses. There was no formal travel policy in place, just informal practices, with limited data on actual spending. Revenue leakage was evident, as travelers often chose to accumulate mileage points with their preferred airlines, even when lower fares were available at the same time. The same pattern was noticed with hotel stays, where personal preferences led to higher costs despite more cost-effective options being available.

Solutions

MTCL adopted a structured approach during the implementation phase to collect and organize data, which was used to develop comprehensive staff profiles. To meet the client's need for a swift setup, MTCL introduced an on-site solution with dedicated personnel providing round-the-clock support, allowing operations to commence within just two weeks of signing the contract. Following the system's establishment, MTCL conducted in-person training sessions for department and procurement heads.

A key area of focus was the evaluation of air travel expenses. The initial assessment revealed a lack of transparency in spending patterns, primarily due to travelers favoring a specific airline. MTCL identified key travel routes and discovered alternative options with significantly lower fares. Based on this analysis, we negotiated a three-way agreement with airlines to secure corporate and SME fares at specially negotiated, favorable rates.

Results

• Achieved 94.37% usage of the Global Distribution System (GDS).
• Enhanced compliance with the Preferred Airline Program, increasing transparency for future negotiations with airlines and hotels, and addressing revenue leakage through SME and corporate fares.
• Implemented a streamlined and centralized booking process for improved efficiency.
• Provided bi-weekly MIS reports for accurate analysis and monitoring of travel expenses.
• Realized a 15% reduction in costs by offering safer and more economical airline options, replacing travelers' previously preferred choices.