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Developing a global travel program.

Article Excerpt
Structuring a global travel program can be a battle between local interests and multinational consistency, but it has become a top priority for many companies. Although the task can be daunting, integrating worldwide travel operations under an umbrella program can generate numerous benefits with dramatic effect. Harmonizing multinational practices and policies gives companies the opportunity to get a handle on global spend and cut costs by leveraging worldwide purchasing power with increasingly global vendors. Furthermore, standardizing processes and adding traveler-tracking capabilities strengthens security at large corporations.

A handful of the biggest travel management companies continue to position themselves as global players while consolidation in other sectors takes hold, particularly among European airlines. Large hotel companies also have made strides in the past year in bolstering their global presence--particularly in Europe and Asia--either through large acquisitions or alliances.

Large-scale purchasers of corporate travel are taking advantage of advancing technology solutions from travel and meetings management companies, online booking tool providers, corporate payment systems, expense report vendors and other travel suppliers. Some are developing "follow-the-sun" programs in which TMCs and global distribution systems provide 24-hour, full-service support for travelers worldwide.

Meanwhile, integrated policies, more mature procurement techniques and heightened awareness among senior management are pushing travel programs to the next global step.

Still, there are numerous roadblocks to overcome, including language and cultural barriers, internal conflicts and data-privacy concerns. Companies must address security concerns and stay attuned to fluctuating regional economies.

A global travel program is not top-down corporate travel imperialism, but rather a cooperative effort between stakeholders in all regions. 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 be sensitive to local needs without losing sight of the overall objective.

While a program covering every aspect of a company's worldwide travel operation is nearly impossible to achieve, many travel managers have made strides in linking North American and European programs. Some have integrated other regions. With China's economy exploding and booming Asian hotel and airline service growth, accelerating travel management globalization is a certainty.

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

5. Establish a vehicle to communicate advisories and locate traveling employees in emergency situations

6. Impart a global corporate philosophy in which headquarters sets broad strategies in key areas, including travel management--while allowing for local input and customization

7. Establish procedures and information systems to take advantage of market changes

B. Your chairman, CEO or CFO should communicate the global strategy to all executives, which lends credibility to the travel management team as it begins to implement the process.

C. A healthy domestic or regional travel management program usually provides a strong foundation for a global effort.

1. Travel managers can show proven results when they ask for support from international managers.

2. Success provides a base of experience and relationships on which you can build. However, acknowledge cultural differences at the outset, and understand that not all aspects of a successful program may be exportable in their...

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