Is travel different from other buying categories?

Transcription

1 Is travel different from other buying categories? Jafles Pacheco Global Head of Travel Oerlikon

2 In what ways do you find travel is similar to buying other service categories? In what ways is it different?

3 Let's look at buying let's say.... office supplies... Understand Business Needs Consolidate spend Develop Category Strategy Specify quality Set Targets and Strategy Identify Potential Suppliers Create a Sourcing Strategy RFx,Auction? Negotiate, Analyze and Select Competitive Suppliers Decide, Finalize Contract Implement and Manage Supplier Performance

4 And what happens when you buy.... Hotel accommodation... Understand Business Needs Consolidate spend Develop Category Strategy Specify quality Set Targets and Strategy Identify Potential Suppliers Create a Sourcing Strategy RFx,Auction? Negotiate, Analyze and Select Competitive Suppliers Decide, Finalize Contract Implement and Manage Supplier Performance

5 What else...? "Travel... is a significant spend volume".spend is not easy to control".affect so many employees".is not so easy to switch suppliers".has an influence on employee satisfaction... but is not quantifiable... And what about.... logistics?. MRO?. office supplies?. Enterprise Software?. Training? Inspired by Scott Gillespie, 2011 GBTA Conference

6 "Buying travel is so hard..." Office Supplies Promotional Items Lubricants Cars Hotels IT Equipment Temp labour Airlines Agencies Consulting Software Advertising Easy Moderate Hard Inspired by Scott Gillespie, 2011 GBTA Conference

7 So what's the difference??

8 Yaaay YOU'RE NOT ALONE ;-)... Every traveler is an expert

9

10 Other than that.... travel categories do have specific aspects to be considered

11 Airline contracting... Fare buckets HIGHEST Price Last seat, no restrictions First Last seat, no restrictions Business Last seat, no restrictions Eco LOWEST Price Few seats, many restrictions

12 Airline contracting... Fair Market Share

13 Watch out when contracting... Quality of Product/Service Policy Management Relationship Strategic Value Customer service Upgrades Ease of use ON time stats Availability Cleanliness Food quality Roominess Health & Safety Age of fleet Traveler productivity Any others? Popularity Favorable pricing Self Booking Pre-trip approval Missed savings report Senior Mgmt's Use Consequences Any others? Collaborates with TMC Effective Account Mgmt Responsiveness Solution-oriented Waivers and Favors Trust References, reputation Any others? They buy from us Common Board Members CSR Commitments Supplier development Any others? Source: Scott Gillespie, 2011 GBTA Conference

14 You might want to look at Business Travel IQ Forum, Interviews, Webinars at CIPS Chartered Institute of Purchasing and Supply An essential guide to purchasing business travel services Procurement Leaders Category Intelligence Travel & Fleet

15 Thank you! Jafles Fernandes Pacheco GTP Global Travel Professional, MCIPS Head of Global Travel OC Oerlikon Management AG ch.linkedin.com/in/jaflespacheco