Creating a State Travel Creating a State Travel ProgramProgram

Get them where they need to go Get them where they need to go and save the state dollars!and save the state dollars!

Today’s PurposeToday’s Purpose

• To gain the knowledge and tools need to create and establish a travel program.

• To cover the 4 main points of a travel program

• Who to involve in establishing a program

• What to ask for from preferred providers

• Other useful topics

Today’s TopicsToday’s Topics

• Why have a program

• The 4 Travel Program Points.

• Travel Policy

• Finance Considerations

• Travel Management Providers

• Preferred Providers

Why have a ProgramWhy have a Program• Can easily save your State money• Provides savings, flexibility and security to your

travelers.• Provides data on where your travelers are going,

(this is valuable information in negotiating even higher savings to your top markets)

• Travel is often scrutinized by the public, having a program and showing the savings counter acts the questions.

• Prevents fraud and abuse

The Four Program PointsThe Four Program Points

Travel Mgmt Provider

Finance

Preferred Providers Air, Car, Hotel

Travel Policy

Travel PolicyTravel Policy• Complete State Support (Governors Office

mandate helps)

• Straight forward and easy to understand

• Consider all the factors

• Be prepared for resistance

• Form a committee of various agencies to write the policy.

• Ask for input from everybody

Travel Policy RequirementsTravel Policy Requirements

• Pre-trip Approval

• Mandated use of your contracts

• Authorization number for booking

• Required form of payment

• Exception process

• Post Reimbursement Procedures

• Other

Travel Policy ExceptionsTravel Policy Exceptions

• The Policy may not fit all agencies and will require exceptions

• May want to grant a blanket exemption or require approval for each exception.– Prisoner Transport (Blanket Exception)– Flight times won’t work (Approval Request)– Other

Travel Policy ConsiderationsTravel Policy Considerations

• State Laws may govern policy

• Industry changes affect policy

• States should review their policy each year and revise travel policy where changes needed.

FinanceFinance• Choose a product with a RFP

?

FinanceFinance

Points to consider

• Involve Finance Division

• Partner up with other public entities (e.g. State and Higher Education)

• Will you use a Purchasing Card or a Central Travel Summary (CTS) account. Also known as “Ghost Cards”

FinanceFinancePoints to consider cont.

• Seek rebate opportunities

• Will other charges also occur on these accounts.

• One card system vs. multiple card system

• Personal Liability vs. State Liability

• May require to provide Insurance Coverage

Travel Management ProviderTravel Management Provider• Select a single Travel Management Provider (TMP)

with an RFP. (Larger States may require more TMP’s – keep the number limited!)

• Empower the TMP to enforce your travel policy• Require TMP to provide on-line and traditional

bookings (phone bookings)• Require TMP to reconcile credit accounts and

resolve problems as they occur.• Require to provide training to Agencies

Advantages of OneAdvantages of One

Benefits of using just one Credit Card and Travel Management Provider include:

Better Compliance ControlManagement ReportsReconciliation of AccountsOne Stop Shopping for travelersEasier Problem Resolution

Preferred ProvidersPreferred Providers

• Airlines

• Car Rentals

• Hotels

                 

AirlinesAirlines

AirlinesAirlines• Use a mix of capacity controlled and un-

restricted last minute fares (Y-Class)• Limit Capacity Control to upper buckets (Top ½

of availability)• Consider Frequency of flights, non-stops and

departure / arrival times.• Bid markets with at least 25 or more passengers

per year (Don’t ask for every city pair)• Prohibit fare matching by airlines• Single TMP and Form of Payments, Compliance

and Authorization Control (Airline Tri-Fecta)

Airline Tri-FectaAirline Tri-Fecta

Si

ngle

For

m o

f Pay

men

t Single Travel Mgm

t Provider

Authorization / Compliance Control

Multiple sources viewed as risky by airlines = higher prices

Benefits of Contracted FaresBenefits of Contracted Fares

• Fully Refundable Fares

• Last Minute Bookings

• No Change Fees

• Unrestricted Fares

• Allowed for employee use, persons in care or custody in State, persons representing the State, job interview candidates where State is paying the fare.

Car RentalsCar Rentals

Car RentalsCar Rentals• May require Liability and LDW Insurance to be

included with vehicle rental• Require multiple forms of payment (Direct Bill and

Credit Cards)• Prefer Airport Locations• Ask for multiple car types• Round Trip Pricing and One Way Mileage

Charges• Consider Age restrictions (18, 21 & 24 years)• Waive airport fees and local taxes if possible

HotelsHotels

Hotel ProgramHotel Program• RFP or RFQ Process• Discounts off of Per-Diems• No Black Out Dates• Allow for deviations from mandated use (e.g.

Conference locations, mission of Agency)• Allow for capacity control of rooms, up to 85%

= Discount, last minute = Per-Diem)• Multiple forms of Payment (Direct Bill and

Credit Cards)

Hotel Program ContinuedHotel Program Continued

• Other features and charges (shuttles, breakfasts, computer hookups, phone charges)

• Consider Property Locations• Franchises locations usually offer better

rates than chains• Allow for higher than per-diem rate if they

offer breakfast (higher rate should be equivalent to breakfast per-diem rate)

Travel Program ConsiderationsTravel Program Considerations• You will face resistance, be prepared to show

the expected savings.• Once implemented, track and publish the

savings.• Create a State Travel website • Borrow ideas and contracts from other states. • Start with airline contracts and then expand to

cars and hotels. • Have fun creating the program, you will enjoy

the rewards in the end.

Thank YouThank You

Questions ?Questions ?