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Developing a global travel program.

Article Excerpt
The persistent fiscal slump, the war in the Middle East and inveterate terrorist alerts are making the reasons for globally consolidating travel much more compelling, as corporations realize it is in their best interests to ensure uniform policy enforcement and more effective and efficient communications. Additionally, a growing number of travel managers are recognizing that accurate and complete data is imperative for deal-making, securing senior management support as well as safeguarding their travelers. As a result, more emphasis now is being placed on systems and platforms that cross borders and that standardize and enhance access.

Many multinational companies already have consolidated with one or a limited number of travel management companies worldwide or are in the process of doing so. In some instances, companies are consolidating travel within each country. Others are consolidating travel processing on a regional basis. virtually all are benefiting from the efficiencies of centralized purchasing processes. The key is to identify what can be achieved and pursue areas that will show the greatest return on the investment of time and money. However, global travel consolidation is not a solution for all companies. It still is primarily in the domain of large corporations with significant travel expenditures. The kinds of corporations that are taking this route today primarily are U.S. and western multinational companies, since small and medium-size corporations may not be able to realize comparable economies of scale. In Europe and Canada, the number of successful consolidations dramatically is approaching that in the united States, eve n with the various language, cultural and platform complexities inherent in European consolidations.

For most corporations, developing a global travel program is a voyage of discovery into their own organizational framework and what can be achieved within, depending on their corporate infrastructure and the extent to which they have established centralized strategic sourcing functions. It is imperative that the objectives of any global or multinational travel program have senior management support and be aligned with the overall corporate objectives.

Not all companies are able to accommodate coordinated global decision making that has an impact at the country, regional or global level and is mutually agreed upon. Focusing on those countries with the greatest bulk of the volume is more likely to succeed in a first-time consolidation. While currency, language and cultural differences can be challenging, they no longer represent significant impediments to effective consolidation initiatives. Third-party data aggregators and improvements in travel agency data collection capabilities have facilitated the ability to collect information from disparate data sources.

As the weakened world economy creates increased interest in controls for travel expenditures, it also is driving particular travel management technology solutions heretofore unavailable outside of the United States to be developed and adopted in Europe and other areas at a crisp pace. At the same time, security concerns have put new focus on developing a consolidated database of up-to-the-minute information on traveler location en route.

Consolidation also can bring such benefits as consistent policy enforcement, improved communication and the ability to leverage aggregate spends with key suppliers. As with similar initiatives, success is contingent on a realistic understanding of what can be achieved and the willingness to focus, in order of magnitude, on those aspects that will deliver the greatest returns.

Following are steps that can lead to the development of a multinational travel program:

I. THE STARTING POINT

A. Once the decision has been made to undertake a global program, the most successful companies have the chairman, CFO or CEO communicate the decision to all executives around the globe, which lends credibility to the travel manager as he/she begins the process.

B. A healthy and strong domestic or regional travel management program is a key prerequisite for a global effort.

1. Travel managers can...

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