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Article Excerpt
Globalizing travel management programs has become a top priority for a growing number of multinational companies. Though the task can be a daunting undertaking, integrating worldwide travel operations under an umbrella program can generate numerous benefits with dramatic effect.
The current environment offers both challenges and opportunity for those headed down that path. The opportunity is generated by improving global economic trends, regulatory changes, technological advancements and evolving market conditions. For example, the International Air Transport Association, which governs many aspects of the global airline industry, has eased restrictions on many cross-border travel management practices. Developments at IATA in part have been influenced by the travel management community and industry consolidation.
A handful of the biggest travel management companies, for example, continue to position themselves as global players while consolidation in other sectors takes hold, particularly among European airlines. Moreover, multi-brand hotel companies and global airline marketing alliances continue to pursue multinational business.
At the same time, large-scale purchasers of corporate travel are taking advantage of advancing technology solutions from travel management and meetings management companies, online booking tool providers, corporate payment systems, expense report vendors and other travel suppliers. Some corporations also have begun to develop "follow-the-sun" programs in which travel agencies and global distribution systems provide 24-hour, full-service support for travelers worldwide.
Meanwhile, managers are deploying internal strategies to bring their travel programs to the next step, including integrated policies, more mature procurement and sourcing techniques and heightened awareness among senior management.
Of course, there are numerous roadblocks to overcome, including language and cultural barriers, internal conflicts, data privacy concerns and the sheer logistical challenges of such a grand undertaking. In addition, companies must diligently address terrorism and other security concerns and stay in tune with fluctuating regional economies.
To pull off such an initiative, global travel management personnel must become champions of change management. They must validate the program and secure support at every level, from senior management to agents, travelers and other staffers at the local level. They must respect cultural differences and be sensitive to local needs without losing sight of the overall objective. They must also recognize that not all aspects of a global program will be best suited for each local operation: patience, compromise, education and communication are essential.
For most corporations, developing a global travel program is a voyage of discovery into their own organizational framework. Success depends on their corporate infrastructure and the extent to which they have established centralized strategic travel management sourcing functions. What occurs within the travel management discipline can set precedent in terms of corporate values and processes applied throughout the global entity.
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.
While a truly "global" program covering every aspect of a big company's worldwide travel operation is nearly impossible to achieve, many travel managers have made strides in linking North American and European programs. Some also have integrated other regions and even certain far-flung operations. With China's economy exploding and plenty of new airline services to Asia, accelerating travel management globalization is a certainty.
Though some companies are opting to outsource certain aspects of their travel programs, the following outline can help lead to internal development of a multinational travel program:
I. THE STARTING POINT
A. Multinational companies seeking to globalize travel operations may decide to do so for the following reasons:
1. Improve efficiency and reduce costs worldwide
2. Achieve a comprehensive picture of global travel spend for budgeting and financial management purposes
3. Strategically consolidate worldwide purchasing power and negotiate volume-pricing agreements
4. Achieve superior service for your employees through preferred service-level agreements
5. Establish a vehicle to communicate advisories and to locate traveling employees in emergency situations.
6. Impart a global corporate philosophy in which headquarters sets broad business strategies in key areas, including travel management--while allowing for local input and local customization, where appropriate--on travel policy
7. Establish procedures and information systems to take advantage of market changes
B. Once the decision has been made to undertake a global strategy, you should have your chairman, CFO or CEO communicate the decision to all executives around the globe, which lends credibility to the travel management team as it begins to implement the process. Senior management endorsement is not a prerequisite--it may come only after the process has...
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