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Developing a global travel program.

Article Excerpt
A growing number of multinational companies are undertaking initiatives to globalize travel management programs against a backdrop of gradual economic recovery, lingering terrorism fears and consolidation among large travel management companies and other travel suppliers. Though the task can be a daunting undertaking, globalizing your travel program can generate numerous benefits with dramatic effect.

Consolidating operations with one or a few travel management companies, for example, can provide consistent service levels as well as a mechanism for tracking travelers and providing en route support, critical aspects of any travel program in light of current terrorist concerns and other geopolitical developments. If properly formulated and enforced, a uniform travel policy, meanwhile, can help control costs by guiding travelers to a roster of preferred global suppliers and leveraging best practices used previously on the local or regional level.

Timely and robust data in travel programs of all sizes are key, and advancing travel management technologies can help a multinational company act on its intentions to globalize. Travel management companies and other third parties can create global data warehouses used to build an accurate picture of travel patterns and T&E expenditures critical in supplier negotiations and ongoing program management. Meanwhile, online booking tools, corporate payment and expense reporting systems and meetings management technologies continue to add multinational capabilities, allowing companies to leverage automation and drive efficiencies throughout the program.

At the same time, such supplier groups as airline alliances and multi-brand hotel companies are developing programs and building infrastructure to serve multinational accounts. Though they are no means an ideal solution for all multinational buyers, such cross-border programs provide an avenue for leveraging aggregate travel spend with key suppliers and present an opportunity to engender traveler loyalty.

Meanwhile, global travel managers need to take into account changing regulations that will impact travel between the United States and the European Union, increased scrutiny on cross-border data transfer, the huge growth potential beginning to be tapped in Asian and Latin American markets and continued unrest in the Middle East. Safety obviously is paramount, but regional economic conditions may influence travel operations, decision making and supplier negotiations.

To pull together disparate and oftentimes far-flung operations into a single, cohesive program, 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.

Following are steps that can lead to the 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 travel 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...

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