Corporate Travel ViewpointsJanuary 25, 2012

Will TateSenior Vice President

Management Alternatives, Inc.972-599-2833 willtate@manage-alt.com

Agenda

Corporate Travel Trends Globalization All Things Procurement

RFP Best Practices Service Level Agreements

Open Dialogue

Top 2012 Corporate Travel Mgmt Trends

Societal Trends1. Personalization2. Social Media3. Corporate Mobility4. New Travel Entrants

Travel Trends5. Fragmented Content6. Demand Management7. Meetings Management8. Hotel Contracting9. Airline Contracting10. Service Configurations11. Charge Card Fees

Personalization

Source: Google

Social Media

Corporate MobilityImmobile: Many Travel Programs Lack Control Over Devices, Apps

56% of Travel Managers said they were not involved in managing mobile devices, mobile software or telecom programs68% said they were not involved in purchasing mobile apps for travel“With a means of direct communication to travelers, suppliers can market products, float special offers and establish close customer relationships. Though beneficial in some ways, these activities can undermine managed travel programs “

August poll of 294 Travel Management Professionals conducted by

Procurement.Travel

New Travel Entrants

iTravel Patent

Acquired ITA Software

Blackberry Travel App

Fragmented Content

Demand ManagementPrice and Quantity (Frequency or

Consumption)

$100/Trip X 10 Trips = $1000 Spend

Reduce Price $70/Trip X 10 Trips = $700 Spend Reduce Quantity $100/Trip X 7 Trips = $700 Spend Reduce Both $70/Trip X 7 Trips = $490 Spend

Demand Management

DM Element Process ProcessDifficulty

10% Reduction of Internal Meetings

1. Purchase codes assigned

2. Soft stops

Easy

20% Reduction of Internal Meetings

1. Mgmt memo2. Internal

Benchmarking

Moderate

30% Reduction of Internal Meetings

1. Reduction of employees per meeting

2. VC alternatives

Difficult

50% Reduction of Internal Meetings

1. Full pre-approval2. Hard Stops

Difficult

Meetings Management

Data Collection Registration Contract

ManagementMeetings

ManagementTechnology Integration

Transient/Meeting

Integration

Hotel Contracting

Dynamic Pricing?

Death of LRA?

Ala Carte Pricing?Ancillary Services –Not Needed?Outsourced Providers

Multi Year?

Airline Contracting

Commission Reductions

Discounts by Fare Class

Removal of Fare Classes

Reduction of Discounts

Requirement of All Market Share

Charge Card Fees

Impact to TMCs?

Carrier’s charge Buyers

Buyer’s costs rise

Buyer’s question value

Buyer’s look for other options(Pay Pal, Air Plus, Others?)

Service Configurations

CTDs

On Sites

In Country

Call Center

Regional Call

Centers

Follow the Sun

Globalization

• Perceived vs Actual Needs

• Top 10 mistakes to Avoid

All Things Procurement

• Understanding Procurement

• TMC/Client Account Assessments

• Client TMC Sourcing

• How to Sell/Manage with Procurement

Open Dialogue

Corporate Travel ViewpointsJanuary 25, 2012

Will TateSenior Vice President

Management Alternatives, Inc.972-599-2833 willtate@manage-alt.com