Meeting the challenges on the road to globalized travel management

Implementing a truly multinational travel program is becoming a key goal for many companies, but some roadblocks can stall progress. Adelman Travel is helping our customers achieve their consolidation goals. With a keen understanding of the global market, we have targeted specific problem areas during implementation and beyond. The results of this focus have allowed us to innovate and implement new products and services designed to help our customers overcome these hurdles.

One of the biggest issues facing multinational consolidations is data management. Accurate and timely centralized data is critical to gaining the true transparency needed to drive down costs and to maximize leverage with suppliers. However, consolidating this data in a timely manner can be quite complex since information is often incredibly decentralized. Recognizing this problem, Adelman Travel has created a groundbreaking new proprietary data solution. With our “Global Gateway” tool we can now provide global data in real-time, allowing corporations to have immediate access to their global travel information. Companies no longer have to accept consolidated data up to 30 days after the close of a month, as has been the industry norm. Global Gateway also validates data immediately, so errors are identified and resolved at the point of sale, significantly improving accuracy.

Another feature of our Global Gateway tool is its flexibility. The system can easily be implemented with partner agencies around the globe, thus eliminating roadblocks when a network does not reach a specific country. Global Gateway does not rely on any GDS software, but instead transforms flat file data to XML data so it provides great transparency and ease of configuration.

Another way Adelman Travel is driving down costs and offering greater efficiencies in a global environment is through our adoption of the Universal Air Travel Plan (UATP) for industry charges and service fee processing. By processing these fees in a centralizing manner through UATP, our customers can easily reconcile expenses since fees and corresponding tickets are correlated in one easy-to-use report.

Traditionally, businesses have been content controlling 80 percent of their travel costs. A multinational travel program can help companies attain those elusive savings in the remaining 20 percent. With cutting edge solutions, along with proactive global account management, Adelman Travel helps our customers over the hurdles so that consolidation goals are achieved and greater savings are realized.

Cost-reducing strategies for your 2012 hotel program

As the traditional negotiating season for hotel rates gets underway, projections for 2012 indicate that rates worldwide will go up between five and nine percent. Hoteliers are expected to present increases of three to six percent for corporate rates in most U.S. markets. Continued strong demand from the corporate sector, along with a slowdown in supply growth, is helping to push rates upward. However, strategic approaches to negotiations can help stave off some of these projected increases.

Hotel negotiations can be a lengthy process. Planning is critical. It is not too early to start running assessments and reviewing strategies so that an effective solicitation list can be compiled. By getting a jump on the process you can help ensure that your requests for proposal (RFP) will be released in a timely manner. The Adelman Hotel Team and your Global Account Manager can help you get started if you have not done so already.

This year, buyers may benefit from casting a wider net with their initial solicitation list, perhaps adding select-service properties in markets where upscale hotels are traditionally targeted. Buyers who limit themselves could face steeper increases compared to those who have contacted competitive hotels before returning to the bargaining table. Buyers will, however, want to consider their corporate culture before making drastic changes. While using a four-star hotel instead of a five-star property may look like a way to cut costs, your savings opportunities will be lost if compliance can not be upheld.

With hoteliers taking a harder line on rate hikes, buyers should also more actively consider value-adds in this year’s negotiations. In exchange for a higher rate, hotels might be more willing to include amenities such as complimentary breakfast, parking, internet access or top-tier loyalty program memberships. Buyers, however, must assess the true value of the amenity before accepting it as a concession. For example, if most travelers use their Smartphones to check email, free Internet may not be of much value.

Buyers should also be more open to dynamic pricing. While fixed rates have traditionally been preferred, dynamic pricing can be an effective way to reduce costs, especially in low-volume areas. Accepting a percentage discount can be easier and very similar in cost to what would have come out of protracted negotiations. With the low-volume deals quickly finalized, buyers can focus their resources on negotiations in their primary markets.

The Adelman Hotel Team can help you determine which strategies best fit your company’s needs. In addition, we continue to offer savings worldwide through our Radius Key Hotel Partners program and through our own Adelman negotiated rates. Contact your Global Account Manager for more information or for help in getting your 2012 hotel negotiations underway.