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American Express Global Business Travel helps client exceed savings target of $1.8 million by more than $1 million through program optimization
When a U.S.-based telecommunications company with an annual travel spend of $110 million went through a major organizational change, they closely examined every part of their operating model, including their travel program. They wanted to fully optimize their program by identifying their most critical travel investment requirements, unlocking more savings and setting a smarter strategy, but they knew that they lacked the necessary travel expertise to make these changes on their own. That’s why the company turned to AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL – they knew we had the expertise needed to help them build a stronger travel and expense program.
The client signed a long-term contract with AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL and adopted THE BUSINESS TRAVEL OUTSOURCING (BTO) model. AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL now manages and oversees the day-to-day operations of their travel program, working closely with the client’s procurement team, which assists with the overall strategy.
A key part of any travel management relationship is trust. Before the kick-off meeting, the AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL team completed a detailed travel program assessment, so we knew the company’s travel program inside and out, and came ready to present bespoke savings goals, objectives and plans to improve their program. Our thorough preparation created a foundation of trust. We quickly formed a strong relationship with the client, and because we were their trusted partner, we could work together efficiently to take the necessary actions to enhance their program.
Following kick-off, AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL assigned optimization and client management teams to the account to cover every part of the client’s travel program. Air, hotel, and global strategic sourcing were key goals for the first year, so the optimization team reviewed every single sourcing engagement, and assisted the client in negotiating new contracts and discounts to maximize results. Although the company’s annual travel spend was lower than it had been prior to the organizational change, we either maintained or achieved greater discounts for the client, thanks to our deep sourcing expertise. The BTO team also implemented our PRE-TRIP AUDITOR (PTA) tool in the U.S.; PTA actively monitors bookings to increase compliance to the client’s travel policy, thereby driving savings.
Choosing BTO gave the client access to AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL experts, who put our data, tools, and best practices to work to benchmark and evolve the client’s travel program, helping them maximize their savings quickly. After just 10 months into their contract with AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL, the client had achieved $2.9 million in savings, significantly exceeding the annual savings target of $1.8 million. In the second year of the contract, the BTO team will focus on compliance, with plans to implement PTA globally and launch air preferencing at point of sale, which will make it easier for travelers to book the client’s preferred airlines.