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Benefits of consolidating corporate travel
Crucial drivers of possible discounts include elevated first class and intercontinental, as well as the amount of airline competition in the company’s highest markets. This considerable savings can be achieved from numerous sources including consolidated data leveraging negotiations, better traveler compliance, and simplicity of program control.For companies with an existing hotel program, the objective is to beat market average.Normal increased savings potentials for global air programs vary from 1.5%-4% of total air spend and stem from planning and negotiating improved agreements.
Additional chances for sedan and limo savings can occur, mainly during negotiations with global networks. Through consolidation, companies can increase leverage with their TMC on transaction fees, though savings are probable to be moderate when matched to other aspects of consolidation.
Rail consolidation can increase savings, though this area can be challenging. Generally, increased transactions will result in a reduced unit cost.
If one TMC is handling a considerable amount of total spend, the TMC functions as a better partner with tactical goals that are synchronized more thoroughly with the company.
Lastly, regulated procedures will cause decreased booking times for the company and TMC, providing extra savings.
Negotiated rates can contain extra amenities; (e.g.
Wi Fi, breakfast, and parking) that can drive considerable savings to the entire cost of stay. Having one global policy that includes best practices through benchmarking along with competitors can influence how much companies spend on business travel and expenses.Companies can encourage completion amongst vendors to increase savings opportunities.This process can push compliance and shift business that will result in improved rates and benefits.There are substantial benefits of global consolidation and savings is the main driver for corporations to make the switch.Possible savings from a consolidation differ, based on a programs complexity and objectives.However, corporations without a regional or global program with a single or decreased number of TMCs, no existing global policy, or organized supplier program, can save up to 25% on total travel spend.The following key savings advantages can be achieved from global travel program consolidation: 1. Skilled sourcing, bearing in mind leading carriers in local markets and competitors trying to gain market share, can assist companies to achieve significant savings on air spend.Travel management expenditures become clear and allow for the return on investment of each trip to be more noticeable.Decreased Program Difficulty For large corporations with a previously multifaceted program, working with numerous TMCs, cards, data sources, and different vendors generates increased difficulty.Combining to a single or reduced amount of TMCs, rather than numerous tools and processes, can consequently aid in providing first-class travel risk management.Increased Transparency Improved and more unified data signifies that the pertinent information is stored in a single location and in a regular format.