Managing travel and accommodations for over 6,000 employees was not exactly a business priority for a very large and busy healthcare institution. Comprised of over 16 member and affiliate groups, it was easy to understand why a not-for-profit healthcare consortium felt there was not time to address a financially unhealthy situation in its travel department.
Because travel was not consolidated, travel policy was unmanaged, and communication between internal departments was lacking, Direct Travel felt there was a large savings opportunity. After an initial approach and presentation to this company by Direct Travel’s SVP of Operations and their Account Manager, the decision makers felt that a completely mandated travel management program would be too big of a change for the entire staff, even with an opportunity to save 30% of travel spend per year. Direct Travel’s team did not take no for an answer. A proven cost effective travel plan was prescribed and adopted into the company’s 2012 strategic initiatives.
In order to properly implement a mandated travel management program, Direct Travel utilized a very effective Three Phase Approach to travel management. The goal was to create a seamless Hybrid Solution of full-service, online and mobile travel management to best meet the company’s growing travel needs, and to later carefully analyze consolidated travel booking data to provide a quarterly analysis and manage and streamline additional cost saving opportunities throughout the fiscal year.
Benefits of the new travel program included:
- Consolidation of all travel
- Visibility into travel spend
- Accessible content housed in one place
- Integrated preferred vendor rates
- Duty-of-care initiatives
- Benchmark reporting
- Real-time, customizable reporting
Within four months results were noticeable in all areas, including savings and travel policy compliance. Preferred vendor compliance exceeded expectations with preferred domestic carrier compliance at 12.8% above the goal, and preferred car rental compliance at 47.7% above the goal. The company realized:
- 68% average travel policy compliance
- 26.6% online adoption rate
- 12% lower than industry average cost of air tickets in North America (per segment)
- 8% lower than industry average hotel cost per night
- 19% lower than industry average cost of car rental per day
With Direct Travel’s assistance, this healthcare company not only implemented an effective travel policy within four months, but also successfully changed their approach to travel management.