Steve Summers, Chief Executive of Key Travel, challenges organisations to look more closely at their travel spend.
There is no doubt that the year ahead is set to be a tough one. With the festive season well and truly behind us, businesses are now looking forward to a year of cost-cutting and budget squeezing in order to survive. It is no secret everyone has had to tighten belts in recent months; companies and charities alike are finding themselves faced with tough decisions.
In order to meet new targets, ‘less prevalent services’ will, and already have been, the first to go. The ‘Great Depression’ has seen cut-backs in PR services, CSR regimes and employee volunteering initiatives. These services, although not integral to a firm’s stability, all help position a firm in a different light, reaping benefits and enhancing that they aren’t solely business driven but do take an interest in their employees, and the world around them. Surely we shouldn’t let this recession have an impact on our business reputation? There must be a way for them to uphold their good image and continue with their charitable work without breaking the bank.
Having 30 years experience in the travel management sector geared towards the third sector, I understand it isn’t easy for companies to change strategy when it comes to their reputation and charitable donations. The good news is businesses do not need to risk their charitable image; there is light at the end of the cost tunnel.
Travel management companies (TMCs) are the saviours in this story. Great savings can be made through using a TMC, allowing travel budgets to be reduced, without reducing travel and continuing to supply volunteers to the zones where help is most needed. There are many benefits to using a TMC, the most obvious being management information and consolidating booking services, but the most prominent is the financial benefit.
TMCs work closely with travel suppliers on a regular basis so they know the industry intimately and benefit from long lasting relationships. Working with suppliers for decades, the clients benefit from discounts, deals and a strong understanding, which all help to reduce the overall costs.
Buying travel on a need to buy basis can be expensive as many providers are designed to cater for the leisure industry. It is a common misconception that buying directly from a travel provider, like an airline, will reduce costs in a corporate setting. In fact, TMCs have a much better track record, with recent research* showing that by using a TMC, companies can save upwards of 20% on their travel budget.
Having the knowledge, ability and contacts to serve your needs quickly and efficiently, TMCs minimise extra cost to the client through their specially negotiated content. Like other service organisations, TMCs very often specialise in a market sector, be it, corporate, public, finance, retail or NGO, these areas of specialism enable them to develop their product and service portfolio to the exact needs of that client base, resulting in unique pricing and benefits not available to the buyer independently. The collective cost benefit of using a TMC can easily add up to a significant amount, to be used against any number of other positive initiatives.
I hope this information will stand all businesses in good stead and highlight that 2011 isn’t the end of charitable reputations but merely the beginning in successfully managing the costs involved.
www.keytravel.co.uk
* Research conducted by Key Travel in 2010.