1. TRANSFORMING TRAVEL
FULFILLMENT
By Steve Reynolds, President - The R Group
June 14, 2012 Proprietary and Confidential. Please do not distribute without
permission.
2. Agenda
Introductions
Travel Fulfillment Process Defined
Estimated costs and drivers
Path way to lower cost fulfillment
$10 - $5 - $0
Summary
Q&A
3. Introductions
The R Group
Steve Reynolds, President, Steve.Reynolds@thergroup.net
Technology, Supplier Management, Procurement, and Transformational
BPO
TMCs (Amex & BCD), OTAs (Expedia, Orbitz, Priceline, Travelocity)
CTD Systems
Joe Monaghan, Executive Vice President, Joe@ctdstravel.com
HP
Sandy Prosser, Global Travel and Meetings Service Delivery,
sandy.prosser@hp.com
PTC
Kathy Briski, SVP PTC, Kathy@partnershiptc.com
4. Travel Fulfillment Defined
Online
Booking PN Mid-office MI Back-office
R R
System
Quality Control ARC Report Recon
Itineraries Credit Card Recon
Reservation Commission Tracking
Improvement Data Feeds (reporting)
Ticketing Misc. Processes
Pre-Trip Approvals
International Rate Desk
Reservations Exception Processing
Helpdesk
After Hours
5. Current Cost Estimates and
Drivers
Online
Booking PN Mid-office MI Back-office
R R
System $3-
$5 $7.00 $1.00
80% 100%
$20.00
20%
Reservations
Helpdesk
After Hours
Average costs online, touch-less $8.00
$25-$50
Average costs traditional, touched $28.00
Total average fee $12.00 (80%)
$10M = $185K
6. Phase one – Costs < $10.00
Standardize, Simplify, and Automate processes
Complexity and touches increase costs
Are they worth it?
Reduce calls to agents
High exception rate (1:1)
Educate travelers on when to call (or not) and costs
Reduce exceptions
Online = touchless
Profile Management Tool
Any tasks that stop a reservation from ticketing/kick-out
Remarks entered by traveler thru online booking – “Prefer first floor room”.
Missing or invalid documentation – CC’s, accounting codes, approval codes.
Lack of reason code and/or logic
Missing or invalid comparison fares
International/complex itineraries
AAirpass, SWA, Direct Connects, etc.
Improve touchless by 10% = savings of $1.20 per ticket
7. Reduce costs per transaction (<
$2.50)
Discuss fulfillment costs with TMC.
Fully understand the definition for each transaction
Touched, Untouched, Hotel/Car Only, PNR/Ticket
Remove exceptions from the process, automate everywhere possible
Move exception handling offshore/at home agents
Possible to cut costs in half - $20 to$10
Reduce backoffice and ARC reporting costs
Purchase reporting solution directly from vendor
File weekly ARC report using offshore labor
Potential to reduce the costs in half - .50
Saving total
Processing - $1.00
Exceptions - $10.00
Backoffice - .50
Average 90% = $2.40 (versus $9.90)
8. Radical cost reductions ($0 fee)
Reduce dependency upon TMC back-office data
Use Expense, Card, and Vendor data instead
Examine the purpose for reporting – is it worth it?
Move all calls offshore (VIP, After Hours, IRD)
Potential for 50% cost savings on high cost transactions
Allow TMC to keep all commissions and incentives
Commissions, overrides, listing fees, Pay For Performance, etc.
Use their contracts and discounts, not yours
Expect better fare and rate discounts (audit and benchmark)
Allow travelers to book direct
Go the OTA route
Capture data thru Card, T&E, third party, email, and supplier feeds
Establish a low cost culture using game theories
9. Summary
(From $12 to $0)
Reduce calls thru online adoption and education
Reduce manual exceptions thru simplification and
automation
Reduce dependency upon TMC back-office data
Allow agency to use offshore staffing where appropriate
Allow TMC to keep all commissions and incentives
Allow travelers to book direct thru OTA or supplier sites
10. We Want to Hear From You!
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