Brad Seitz @ Topaz

Verification that your travel program is working

In my last post, I spoke about people blindly following other people and getting hit by cars.  This was the lead in to this post about travel managers and buyers blindly trusting everyone and creating a poorly run travel program.  There are a lot of followers in the world that do not adhere to the the ideal "be a leader, not a follower".

So as you are creating your program, remember that you need to measure and verify that your pollicy, your agreements, and your philosophy is being used and adhered to.  Simple to say, hard to do.  So lets give you a list:

a) Are your negotiated hotel rates loaded correctly so they can be booked by your travelers?

b) Are you negotiated airline rates calcuating your discounts correctly either via your traditional TMC or an online TMC?

c) Do your travelers obtain and travel on the lowest airfares within the parameters of your policy?

d) Are your travelers using your travel program or are they going outside of the game?

e) Do your travelers use the corporate card or are they using a personal card to get other benefits?

Now, these are just a few of the things that do not work unless you measure and verify the performance of your travel program and only if you are a leader and not a follower.  Try and not get hit by that car!

I Marvel at the Resistance

I hear more often than I should about irate and irrational behaviors on calls with our clients.  Now, these are never comments from our clients - they understand and respect us and what we do.  Rather, there many TMC's out there that just do not get it.  And they make themselves sound immature the minute they open their mouths.

Now, before I get in trouble, I will say not all travel agencies are created equal.  There are many out there that are respectful and professional - and I constantly refer them to my clients.  The others, well they just do not get it.  Let me share some facts:

a) We are not out to get you.

b) We are out to improve you and your processes.

c) One month does not make a valid assessment - your travelers do not book all their trips in one month?

d) If you throw people at your reservations by looking them over before queuing them to Topaz, then you are cheating.

e) A self evaluation is not the same as someone else doing it.

So next time you get on a call with us, remember this:  being professional goes a long way.

Encore: Are Internet Audit Comparisons still relevant?

One of the biggest concerns still being brought to travel managers today is the claim that the internet has lower fares than what your travel agency or online booking system is offering.  Topaz International will work with both corporations and agencies to compare your booked fares with specific internet site(s) that you select.  This unique service cannot be done by just anyone because you must have the expertise and access to booked trips via the various GDS platforms and the expertise to replicate those trips using online tools.  As part of the results, Topaz International will provide you with a report that displays each itinerary, booked fare, and the lowest fare found on the internet site(s).  By reviewing the reports, you are able to quickly analyze the performance of your managed travel program in comparison to internet results, and use these results to drive improvement or advocate the use of your travel program. 

Studies can be conducted using one of the following options:

• Re-price the actual booked itinerary on designated internet sites for a side-by-side comparison of fares
• Allow the internet to search for the lowest fare using the lowest documented itinerary or booked itinerary as the requested search option. 

In order to set up an internet comparison, the following information must be established:

• Length of study
• Parameters for comparison
• Electronic link to agency/queues
• Internet sites for comparison

Typical Internet Sites used in past studies:

• Airline Specific Sites
• Orbitz
• Travelocity
• Expedia

In addition, TOPAZ can provide an unbiased third party review of corporate sites and Computer Reservation Systems to ensure that travelers are booking trips within policy and the systems are working as they are intended.  Some of the newer corporate sites like Orbitz for Business and Travelocity Business require working agreements between the corporations and the owners of these sites.  This additional service provides travel managers and industry executives with the assurance that they are getting what is being paid for and advertised.  www.etopaz.com

Encore: When will the corporate travel industry start using quality tools?

I was fortunate in my early years of my professional career to be part of Xerox Corporation and their Quality Movement.  With David Kearns leading the company, I was trained in total quality management, including continuous improvement, quality measurements and benchmarking.  I believe it is long overdue for our industry to embrace these old fashioned tools to make us better.

At Topaz we use these tools internally to make us better each day.  We do not rest on our past performances, nor assume we have ever made the grade.  Quality is a race with no end, Mr. Kearns once said, and I think that is true.  For any company out there using such tools, way to go.

For the others, each and every company in our industry can learn from these quality tools to make things a little better.  Reduce the lines at the airline check in counter, get our rental car a little faster, and make that call with our friendly travel agent a little more effective.  Measure, improve and then measure again.  We will all benefit from such applications.

Encore: What value does a CFO realize when they audit their corporate travel program?

Travel is a necessity for the successful company, whether times are tough or not.  Visiting existing and potential customers, working with internal colleagues or improving oneself are all important requirements that just do not go away.  This is the reason that travel is usually the number three expense in most companies, behind salaries and cost of good sold.  Large companies all over the world understand the value of managing this large expense by negotiating discounts with key suppliers and implementing other strategies to leverage the spend.

However what most companies fail to do is implement programs to improve and monitor the effectiveness of their corporate travel programs.  Some ideas that you should consider:

a) Airfare Audit - Most likely the oldest of audit products, this will ensure you are getting the lowest airfares within the guidelines of your travel policy, and it will provide opportunities to improve the service you are receiving by identifying the gaps in your travel reservation process.

b) Potential Savings Audit - This service allows you to evaluate various alternatives to your current travel policy to determine if there are additional savings to be found if you change your policy.  This is a great tool when you think that you have squeezed all you can out of your suppliers.

c) Internet Audit - Do you think you are getting better deals on the internet?  Most times, this is just not true, but you  never know unless you can do a complete audit on your travel vs what can be found on the interent.

d) GDS comparison Audit - This is a great audit when you either think you want to book your corporate travel on a new reservation platform or you want to validate the performance of your existing platform.  I always recommend that you engage the alternative GDS representatives to make sure you are utilizing comparable formats.

e) Contract Audits - Sometimes it just makes sense to review the current state of your entire travel program.  Times like this are when the good companies stop, review and regroup to ensure they are ready for the uptick in business and in travel that will happen in the future.

The thing every CFO should be thinking about now is even though times are tough, you want to be sure that every dollar you are spending today is working for you and your company.  In addition, you want to get ready for tomorrow and make sure you are ready for the good times again!

Does an audit really save money?

Many of us at Topaz International speak about this subject over and over.  We speak about how an audit really does save you money.  But I am sure there are those that are skeptical that we can really do anything to save money.  But, unlike a financial audit that is considered a necessity with no savings, a corporate travel audit (airfare, hotel, etc) can in fact result in savings above and beyond even the cost of the audit.  Now that is a quick ROI.

Let me explain.  Our audits are all designed to see where leakages occur in your travel program.  Are your negotiated discounts being applied correctly?  Is your policy being administered as you have it written?  Are the lowest airfares being searched out and found so that your travelers are being given the lowest cost alternatives?

When the answer to any of these questions is no, Topaz International will find out, report back, and get you the money you are entitled to.  And since we have been doing this for over thirty years, we have an idea of how to look and how to find these things.  During those thirty years, more often than not, the savings we find is greater that the actual cost of our audit.

So for every month that you audit with us, you may be able to get your cost back in savings we found.  And if we do not find savings, you can sleep at night knowing your program is the best it can be.

Encore: Auditing in State and Local Governments

I write this entry in a font that seems fitting for the subject line - comic(al).  I can say that because of the increase in frequency that my google news alerts have been coming into my in-box with stories about travel at the state, local and federal level that are just not in line with law.  I found that interesting too - it is not policy, it is law.

What I am talking about is that time and time again during the past few months media channels have been writing about how taxpayer dollars are being spent to fund lavish trips to London, while staying in a five star hotel, or trips to South America to hook up with a mistress.  What I am sure about too is that this behavior while just coming to light now is not something new.  What do we not know?  That is the interesting perspective to this travesty.

I am so passionate about this because for such a low cost, this can be prevented.  Yes, it might be self serving to Topaz, but forgive me this once.  And think about us working for you, the taxpayer, in ensuring that your taxes are spent like the law intends.

So my job now it to start a crusade in the marketplace.  I am going to talk about we can look at every air travel reservation made by the Federal or State government to ensure it meets the parameters of the law.  Real time.  Not after the fact, find it out when it is booked and bring it to the public scrutiny before the trip even takes place.  

Then maybe over time the behavior will change, and we can get back to the business at hand.

Guest Blog Post: Jillian Walsh on why auditing makes sense

This week we have a guest columnist that wrote this post about auditing that I think tells it very well.  Enjoy.

Why Corporate Travel Auditing Just Makes Sense

The word audit may sound scary, in fact it sounds intimidating. The word audit has a negative connotation. Most people associate auditing with someone doing something wrong and needing to catch them. However, the more and more I think about what Topaz does and auditing in general I realize not only is it not scary, it is something that should be budgeted for in every company.
The top three expenses in corporate business are:
#1: Wages
#2: COGS
#3: Travel

So I pose a few questions:
-Would you ever hire someone without an extensive interview?
-Do you monitor your employee’s performance?
-Do you measure your employee’s contributions?
-Do you have meetings and quarterly reviews with employees?
-Do you search diligently for good suppliers to buy from?
-Do you spend ample amounts of time creating an appropriate cost structure?
-Do you monitor how your money is spent on your goods or service that you provide?

Most companies do all of the above. They do those things because they are directly related to how a majority of their money is being spent. Unfortunately while many companies understand travel is one of the biggest costs in their business they fail to monitor it the same way they would employees and their goods or services.

 
Auditing your travel produces the same results that an employee review and supplier research does: A peace of mind that you are getting the most for your money. Simply put, not auditing your travel is as irresponsible as hiring someone and never reviewing their work. At Topaz we have Fortune 500 companies who audit with us continually. These clients understand the importance of the peace of mind that comes from auditing the #3 cost in corporate business. They are continually given a report which allows them to see if their travel is being booked correctly and if not, how to fix it.

 
The word audit can be scary, but only if you allow it to be. Next time you hear someone mention a corporate travel “audit,” try to change your mindset and remember what it truly represents: A responsibility to monitoring the #3 cost in corporate business.

Repeat: Blind Audit: Should I be taking all this grief?

I have had some disturbing conversations recently regarding the validity of blind audits.  The pressure is coming from certain travel management companies because they do not want to support a Topaz audit when the client determines that blind audits are the way to go.  And it is time for me to clear the air, because I feel we am being unfairly singled out, and it is the travel management companies that should focus on their service delivery.

Topaz exists because of the complexity in the marketplace regarding the application of travel policies when obtaining the lowest airfares in the marketplace.  We have always been there to fairly check to make sure your travel management company is doing what you have contracted them to do.

So many years ago we were asked by a client if we can check the travel management company without them knowing about it?  It posed an interesting dilemma because we did not want to do something unfairly nor judge anyone based on a different set of rules.  We always had the pre-audit conference call to be sure Topaz, the Corporation and the TMC were singing from the same set of rules.  So we offered the service known as the blind audit.

And it works the same as an open audit, only the TMC does not know when we are looking at the records.  We have a pre-audit conference call, we have the same set of rules and guidelines, and we have the same requirements.  We open up the queue and we only look at the records when the customer asks us to.  Could be next month or could be five months from now.

So what is the big deal?

The big deal is that the TMC's now do not know when we are looking, so they do not know when to scrub the PNR's to ensure accuracy and utilize additional people to make sure their travel records meet the audit guidelines (and they improve their results).

Which is exactly what the customer wants.  They do not want more people scrubbing PNR's.  They want a fair assessment of the performance of their travel program.  And the TMC's in question are not looking at this in an objective manner.  I can say that because I used to work at a couple of TMC's and I know they are under tremendous pressure to perform, and the long them outlook to improve and get better and use quality tools is still not part of their vernacular.  An extra few seconds to input a remark or comment in the PNR to ensure a more quality program is just not part of their game.

And I should note that not all TMC's are like this.  To generalize would be unfair - and I will not offer up those TMC's that are playing this game. 

But I would suggest to all customers to stand up and demand what you think you need to ensure your travel program is the best you can be.  If you TMC is not supportive, there are others out there that are, and I am sure would embrace you and your customer requirements

What can Travel Managers do to keep their job

I have been crossing the country doing a presentation recently on what a travel manager can do to create a more secure environment for themselves and their careers.  The thought process behind the presentation was that there needs to be some focus for travel managers on what they are doing day to day to ensure they are creating true value to their companies and the stakeholders.  The old way of doing business no longer works.

So tomorrow is the last one I have scheduled, and I thought I would share my thoughts with my readers as I sit in my hotel room with nothing to do but watch cash cab and await my dinner.  But I am not going to give you all my thoughts....just a few.  And maybe next Monday I will share a few more.

a) Expense Reports Matter:  Travel Managers should always look at expense reports.  Get tight with your companies a/p department so you can look at these to see what is going on.  It is the final step.  The final chance to look at what is happening.  You may be surprised to find out what people are not using the travel agency, or what people are not using the corporate card, or many other surprises.  I know we have done expense report audits in the past few years and found some interesting items like pet manicures and dinners that average $500 per person.  These are the things you want to find and stop to add value for your job and your position!

b) Social Media:  So maybe participating in social media will not help you keep your job, but reading and being connected via social media will be key to keeping you informed of what is going on in the industry.  Reading blogs (like mine, and others I have mentioned in previous posts) following industry leaders on Twitter, or staying connected via LinkedIn are key to your success.  And a little tip to take home is to learn how to use Google Reader to keep track of all these things.  There are so many that if you utilize google reader to manage RSS feeds, you can see everything on one page!

c) Audit to Gauge Performance:  This one may be a little self serving, And for that I apologize - but auditing the performance of your travel department will ensure that you are doing the right thing, or finding what you are not doing right so you can improve!  Every year corporations all over the world are required to audit their financial's, but they do not even consider auditing their travel department.  This can be a major shortfall in the overall credibility of your program and your position and you should look carefully at what you are doing to validate your performance!

I hope these ideas help you - I know of too many friends that are losing their jobs and I do not want any more phone calls from people looking for work!