With a professional Travel Management, or better Mobility Management, a corporation can decrease expenses for business related travel and activities rapidly.
A Mobility Management Department should cover following key points:
Travel Management:
- Global rate negotiations and contracting with, Business Travel Agencies, Hotels, Airlines, Rent a Car Companies, Railways Companies and other service providers
- IT solutions for travel expense reporting and -accounting
- IT solutions for online booking engines
- Online training and instruction to the business traveler
- Corporate Credit Card (Travel)
- Air Charter
- Corporate Jet (?)
Event Management:
- Operational and creative responsibility for meetings, conferences, events and incentives. Side effect: sales figures of functions in hotels, i.e. Hilton, Hyatt, Westin, must incorporate with the total annual spending of regular business travel accommodation of the said hotel chain for next years rate negotiations!
Fleet- and Car Management:
- Rate negotiations
- Purchasing and/or leasing of cars and trucks
Setup of a Mobility Management Department:
For best results, the head of department should report directly to the CEO and should be located at the headquarters of the corporation. Should the business be global, step by step area manager for The Americas; Europe, Africa and the Middle East and Asia, Australia, New Zealand should be established.
Cost savings:
- In year 1 you can expect a saving of up to 15%
- From year 3 onwards, an annual saving of 35 to 45% is presentable
From the above figures one can see, organized Mobility Management develops into a profit center and must be understood as a service unit for all business travelers. With such a department, on a short to mid term base, the quality of business travel increases! This is reached by purchasing concentration on selected partners and professional negotiations.
