CWT’s Top Tips to Pick up Missed Savings and Improve Value
News Release
CWT’s Top Tips to Pick
up Missed Savings and Improve Value
New research by CWT highlights
opportunities for additional savings and further proves the
value of managed travel programs
SYDNEY, July 12, 2012 – A
report published today by the CWT Travel Management
Institute demonstrates how companies with even the most
mature managed travel programs still have opportunities to
increase savings—often by
10 percent or more.
Available on i-pad, Mastering the Maze: a Practical Guide to Air and Ground Savings, takes travel managers on a tour of savings opportunities in 20 areas, ranging from program fundamentals, such as concentrating volume on preferred suppliers, to new solutions including negotiating fuel surcharges and ancillary fees. Accounting for approximately half of the total travel budget, air represents the largest spending category in nearly all travel programs. As market conditions evolve, companies face new challenges and opportunities in optimising what they spend on air travel.
Grégoire Boutin, the CWT Travel Management Institute senior consultant in charge of the Study, commented: “This research looks at the areas of the travel program that are typically the most mature, such as air travel and the least mature, such as ground transportation. It’s interesting that both offer sizeable savings opportunities that are very often underexploited.”
CWT’s new top tips
to help companies pick up missed savings:
• Negotiate a
reduction or waiver of airline ancillary
fees. These additional charges, such as baggage
fees and on-board food and services, represent an estimated
6 percent of a company’s air spend. Only 55 percent of
travel managers track how much they spend on this.
• Negotiate with carriers for a refund or back-end discount on fuel surcharges. These can be awarded at the end of the year based on the amount of business that a company has given to the airline over the year. Representing a considerable 7-12 percent of air spend, fuel surcharges appear increasingly disconnected from actual airline costs, rising at twice the rate of oil prices since April 2011.
• Carry out regular Global Distribution System (GDS) audits to check that negotiated airfares have been loaded correctly. In one case study, 6 percent of negotiated airfares had been loaded incorrectly or late – this means substantial missed savings if travellers are booking incorrect or non-negotiated fares.
• Monitor booking class availability on top routes per carrier, cabin class and the number of days before departure so that travel managers can ensure that negotiated conditions are actually available. Half of the travel managers surveyed already successfully use this data to ensure they get the right level of availability for the fares they have negotiated – fare availability is an important but often neglected aspect of program performance. Buyers can monitor availability per carrier, route, cabin and booking window for best results.
• Encourage and educate travellers on the
importance of booking as early as possible. Advance
booking still brings significant savings,
especially on international economy fares. Seventy five
percent of travellers book less than
14 days in advance
– this represents a considerable opportunity for further
savings. Read more.
• Pay
more attention to savings on car rentals,
which represent on average
7 percent of the
overall travel spend. Companies that have focused on car
rentals have saved 6-24 percent, varying with factors such
as volume, region and level of maturity. Read more.
Vincent Lebunetel,
head of CWT Solutions Group for Europe, Middle East
and Africa, added: “We see how important it is to
negotiate on the basis of total cost—beyond basic
airfares, car rental rates or room rates. Suppliers are
generally open to negotiations on extra cost items such as
ancillary fees and this can make a huge difference to
savings in this dynamic industry.”
To learn more about the challenges
around air sourcing and policy, read “Three Questions to
Vincent Lebunetel, head of CWT Solutions Group EMEA.”
About the research
CWT
combined a range of techniques for this global research,
which was carried out from November 2011 to May 2012,
including in-depth surveys of 116 travel managers in more
than 15 countries, CWT Diagnostic surveys of 245
clients, detailed surveys of 3,044 travellers from 9
companies and quantitative analyses of more than 50 million
booking transactions worldwide in 2010 and 2011. The company
also interviewed more than 60 industry experts and produced
12 case studies in what is another example of CWT’s
ongoing innovation to identify value to clients in its role
at the heart of distribution of corporate
travel.
About Carlson
Wagonlit Travel
CWT is a global leader
specialised in managing business travel and meetings and
events. CWT serves companies, government institutions and
non-governmental organisations of all sizes in 150 countries
and territories. By leveraging both the expertise of its
people and leading-edge technology, CWT helps clients derive
the greatest value from their travel program in terms of
savings, service, security and sustainability. The company
is also committed to providing best-in-class service and
assistance to travellers. CWT services and solutions
comprise Traveller & Transaction Services, Program
Optimisation, Safety & Security, Meetings & Events and
Energy Services. In 2011, sales volume for wholly owned
operations and joint ventures totaled US$28.0 billion. For
more information about CWT, please visit our global website
at www.carlsonwagonlit.com. Follow us on
Twitter @CarlsonWagonlit.