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A refined travel program yields increased compliance and greater value
When a global mining company was keen to identify potential areas for travel cost savings, American Express Global Business Travel (GBT) answered the call. This partnership unearthed valuable savings opportunities by integrating strategic management and control over its travel program.
At the time, the company was using two Travel Management Companies (TMCs), rendering its processes—and costs—difficult to manage.
Also ripe for improvement was the low rate at which the company’s travelers were adding lodging when they booked their air reservations. The problem with this lack of booking coordination was threefold. It limited the organization’s visibility into its travel spend. It impaired its ability to track and provide support to its travelers in the event of an emergency. And it prevented the company from negotiating reduced hotel rates because it was vastly underestimating its hotel usage.
With the customer’s support, GBT set to work assessing the current state of its travel program, taking into account such factors as its overall spend, its travelers’ hotel booking behavior, and its preferred suppliers,
STREAMLINING FOR SUCCESS
Based on our analysis and advice, the organization transformed its hotel program. Through renegotations and refinement, the customer’s number of preferred hotel partners went from 15 to 3, resulting in reduced rates and VIP services for its travelers. Having fewer hotel partners also helped alleviate confusion among its travelers and streamline their booking process. Additionally, with our help, the company renegotiated its preferred airline agreements to increase discounts across key routes and class use.
Once we had the right hotel and air solutions in place, GBT and the customer focused on empowering the company and its travelers to make the most of them..This included a customized online booking tool that promotes the customer’s preferred suppliers,, a simpler reconciliation process that streamlines reporting and analysis, and the added convenience of the Amex GBT Mobile app , which allows employees to manage their travel and obtain support while on the road.
Together with GBT and its key suppliers, the customer was able to implement its refined travel tools and processes with ease. Consistent, open communication to and trainings for its travel arrangers ensured they were aware of, knowledgeable about, and completely aligned with the company’s goals.
“We didn’t want their travelers or travel arrangers in the dark or unprepared during the onboarding, so if their current program didn’t have the right tools to book travel, we made sure they got them,” said their American Express GBT Client Manager. “It was all about simplicity and transparency so that the customer could make informed decisions about its travel program.”
Since implementation, the company has seen promising results.
Hotel attachment increased from 14%¹ to 23%
Online Adoption increase of 40%¹ and growing
Significant travel program savings of over $500,000¹
¹Source: American Express Global Business Travel reporting