When working with ERA Groups Travel Management experts; organizations can achieve the best balance of cost and service within their travel budget by applying ERA's analytical sourcing principles to this complex and dynamic area. ERA Group's travel experts take a whole-category approach; focusing on all aspects of an organization's travel requirements.
An organization's travel spending can be challenging to control; with budget oversight often delegated to operational staff and difficulties in tracking actual costs against expectations. Prices for flights; hotels; and car hire vary due to timing; demand; ticket flexibility; and external influences. Hotel rates fluctuate depending on seasonality and demand; while flight prices differ based on airline and booking lead time.
Timing differences; multiple booking channels; and various cost influences complicate benchmarking.
ERA's multi-step process includes:
- Analyzing past spending patterns
- Identifying cost drivers
- Establishing effective control benchmarks
- Ongoing monitoring and adjustment
Leveraging deep market expertise; ERA matches organizations' needs with the best providers while conducting comprehensive ongoing audits to diagnose cost deviations.
Travel providers adjust pricing to maximise occupancy; making traditional benchmarking unreliable. ERA overcomes this by using expenditure data and statistical models to create accurate benchmarks. Continuous monitoring and dynamic cost tracking refine spending controls; ensuring effective cost management and allowing organizations to focus on their business.
So; where do we find savings?
- By properly structuring an organization's spending portfolio in the market unlocks lower-cost options.
- Clearly specifying requirements (i.e. Travel policy guidelines) when engaging a Travel Management Company (TMC) ensures accurate pricing.
- Continuously challenging travel providers and compliance prevents complacency and can lead to significant savings; as seen with a major client achieving 20-22% cost reduction.
- Carefully managing journey routes and timing for each itinerary can result in substantial cost savings (i.e. Booking process).
If you want to learn more about how ERA Group can help your travel budgets; click on the link for an overview of some past projects; or get in touch directly with me in the first instance.
