Business Travel News - September 14, 2009 - (Page 8)

NEWS New Process Finds Co. Low Fares PROFILES IN TRAVEL MANAGEMENT Semiconductor manufacturer Broadcom last ers and their supervisors once a reservation is mon concern when agents start searching multiyear internally implemented a new process to find made. The e-mail also has the lower fare options re- ple content sources. “Even if you double the time the lowest possible airfares. The initiative, which turned by the agent and the time window of the for them doing the search, it’s not all that much time,” Holmes said. “The agent is spread companywide in North America in Octo- reservation, a reason for declinaccountable for the logic of the ber 2008 and this year expanded to Europe, yield- ing that fare, if appropriate, and process, not necessarily every sined immediate cost savings and higher compliance a link to information about the gle step.” low-fare search process. and online booking adoption. For example, if an agent Holmes said the e-mail comThe large-market company reduced its domesknows the company’s negotiattic average cost per mile 13.4 percent and inter- munication platform had been ed fare on a specific route is unnational cost per mile 9.4 percent in the second in use for several years as part of beatable, they can skip most of Broadcom’s Sarbanes-Oxley half of 2008 from the same period in 2007. the steps and do a quick Web Former Broadcom travel manager Bryan compliance efforts. He worked search to validate the fare. Holmes, working with travel management com- with CWT to build on top of the A learning curve also existed pany Carlson Wagonlit Travel, built the process current platform because “there with Broadcom’s preferred carrithat expanded agents’ search criteria to include is a benefit of simplicity, espeers. What some saw as a roadbroader time windows with connection options cially in this age where all inforblock actually became an opporand alternate airports. In addition, when applica- mation is available.” tunity to drive marketshare, said A two-month training and ble, agents are required to search fares from conHolmes, who left Broadcom last solidators, airline Web sites, leisure online book- change management process BRYAN HOLMES month. “You have more control transitioned agents to the new ing sites and metasearch site Kayak.com. Broadened agents’ search criteria of getting marketshare. Even if For tickets of more than $300, Broadcom ap- search methods. One agent the traveler is a frequent flyer with plies a 14-step “low-fare finder progression”to find worked full-time with the new savings of at least $100 on domestic and $200 on methodology when it launched in March 2008 another carrier, if you give us a great fare through international tickets or validate that the reserved with select Broadcom groups, including execu- our discount, the traveler is more likely to go with tives and senior management. One agent was you because it is going to be more visible that they fare is the lowest possible. are making a bad choice from a cost perspective.” The progression methodology starts from a added per week to the program. Holmes’innovative low-fare search strategy isIn the first four months of the two-hour window and gradually exprogram, all ticket requesters re- n’t a reinvention of the entire booking process. Inpands the search filter to six, 12, 24 Visit the BTN Archive see btnonline.com/archive ceived an e-mail about lower fare stead, it’s a change in mindset and behaviors for and, if necessary, 72 hours, and inagents, travelers and himself as a travel manager. cludes other such criteria as a connection option options to accustom travelers to the process. Although the process for the most part requires “We are not the cops,” he said. “You are informaand alternative airports. The system kicks online bookings from the more agent time, Holmes said the added cost is tion providers. We are not responsible for the choices travelers make. Even with company’s preferred Cliqbook tool that exceed negligible in comparison to a rigorous policy, there are $300 to an agent. The fare search process helped the potential savings of lowCOMPANY: BROADCOM workarounds and exceptions, drive online adoption as travelers could stay off er fares, especially when air HEADQUARTERS: IRVINE, CALIF. and we are not part of the apthe radar screen by keeping their bookings as low accounts for about 50 percent proval path or the final decias possible, said Holmes, who added that most of of the travel budget while sion making. We are not accountable for the dethe Irvine, Calif.-based company’s online bookings agency costs are about 2 percent to 5 percent. He also noted that because of agent search ef- cisions they make, but we are accountable for are under the threshold because of its heavy travficiency, process standardization and traveler buy- providing the best information possible.” el along the West Coast. Supporting the process are e-mails to travel- in, agent productivity has not declined—a com—Seth Harris Delta Returns To Mtgs. Discounts Continued from page 4 drop dramatically after they abandoned that program.” The basic product offer is fairly standard for the industry: one free ticket for every 40 flown, plus discounts off published fares, for meetings of at least 10 attendees traveling from at least two U.S. cities to any of the 376 destinations Delta serves. The product has point-ofsale discounts and zone or regionto-region fares. As an introductory offer, Delta will provide one free ticket for every 20 flown for new contracts signed by Sept. 30. “If I was in Delta’s shoes I’d keep that in pace for about a year to really regain the Business Travel News volume that they lost,” Long said. What’s new for Delta is the online contracting tool. “With the merger with Northwest,” Murray said, “and seeing their slick online contracting tool and focusing on the best of both, this was just one of those opportunities to answer a customer need.” Those who were using Northwest’s meetings program, which has been in place for several years, will find the network has added a lot more destinations and added sales staff support. “We have a dedicated meetings sales support staff that can do ticketing and consulting and synching up one-on-one with customers,” Dean said. “What’s old is new, and it’s good to have that personalized service for our meeting customer.” ■ Senior editor Jay Boehmer contributed to this report. 8 Monday, September 14, 2009 www.BTNonline.com http://www.Kayak.com http://www.btnonline.com/archive http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - September 14, 2009

Business Travel News - September 14, 2009
Contents
Inside Track
Profiles In Travel Management
Forum
Aviation
Lodging
Travel Management
EuroBTN

Business Travel News - September 14, 2009