Consulting

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Why You May Need Help

The travel category takes more time and effort to manage than it’s size generally warrants. It is often only the 3rd, 4th or 5th largest procurement category, but is probably the most complicated and opaque. The nature of the travel supply chain does not lend itself to easy management. There are multiple airlines, hotels and other suppliers behind a corporate agency or TMC. Supply and pricing is both direct and indirect. The TMC is a complex package of systems and services with numerous fees and costs, many of which are obscured. There is now a lot of IT involved. TMCs are the main determinant of travel costs and risks, but they earn most of their revenue from suppliers. Their performance, cost and value vary greatly. This sharp conflict of interest in the middle of the supply chain is its most challenging characteristic.

Airline and hotel supply are themselves quite complicated. And you’ll also need a good card arrangement, and to manage and control well, a good expense management system. Everything has to integrate and be compatible. Then there is internal travel policy, internal process, change management and program acceptance to consider.

The difference between getting it right or not is 15% to 30% or more of your travel spend.

Reviews   Assessments    Benchmarking   and   Advice

Unless you are a large travel buyer spending $50 million or more, you don’t have the scale to employ an internal travel category expert. And you probably don’t need a full-time category expert anyway. Spot assistance and advice is more cost-effective. That is where we come in, with reviews, assessments, benchmarking and advice.

As category experts with decades of experience, we will provide you with the knowledge and expertise gained over countless tenders and other projects, in the right amounts, in the right areas, when you need it. You then have a building repository of travel category knowledge that you can retain and use ongoing.

Please call Tony O’Connor on 614/04 09 944 911, or email toc@butlercaroye.com.au