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BACKGROUND VISION OVERVIEW PROGRESS REPORT FUTURE

C ONNEXXU S. The University of California Travel Program. BACKGROUND VISION OVERVIEW PROGRESS REPORT FUTURE. U.C. Travel Management Office. May 2008. Major Expense Item $250 Million/yr in Travel & Entertainment Spend Air Hotel Car Meals Local Transportation No Central Management

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BACKGROUND VISION OVERVIEW PROGRESS REPORT FUTURE

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  1. CONNEXXUS The University of CaliforniaTravel Program BACKGROUND VISION OVERVIEW PROGRESS REPORT FUTURE U.C. Travel Management Office May 2008

  2. Major Expense Item $250 Million/yr in Travel & Entertainment Spend Air Hotel Car Meals Local Transportation No Central Management Minimal Preferred Suppliers No Strategic Sourcing 15% to 20% Savings Potential Board of Regents Priority CONNEXXUS BACKGROUND

  3. BACKGROUND (continued) • Listed as Strategic Sourcing Target • Air • Hotel • Car • Service Providers • Focus • Savings • Consolidation • Best Practices—Need to “Catch-Up” • Central Support • Challenges • How to Organize for the Effort • How to Manage the System

  4. Develop a branded trademark name for UC system wide travel management (Connexxus) Develop, implement & manage an efficient, cost effective & responsive travel program across all UC campuses and laboratories Focus on best practices and ensuring customer satisfaction Negotiate deep discounts with preferred suppliers Multiple reservation options “ Preferred supplier relationships will be monitored & managed” “ Market share needs to be delivered” or Negotiations will be nonproductive Discounts will be withdrawn VISION

  5. ORGANIZATION Strategic Sourcing Steering Committee Senior Management Anne Broome UC Travel Management Matt Golden Travel Program Dan Sampson LEAD External Relations Manager Debra Almason (all UC locations represented -Connexxus program approvals) UC Travel Council Commodity Team System Planning & Focus System Program Support

  6. Established January 2006 Participants nominated by campus controllers & lab CFO’s One participant from each UC location Includes outside independent industry advisors Approves all recommendations on development & implementation of Connexxus Travel Program Campus level involvement in basic program development decisions THE UC TRAVEL COUNCIL

  7. Action Arm of Travel Council Airlines Hotels Rental Cars Agencies On-line Booking Tools Systems, Data & Policy Compliance Implementation Coordination in Multiple Bid Processes with Strategic Sourcing THE TEAMS

  8. $252 Million Total Travel and Entertainment Spend $134 Sourceable Spend - Subject to Preferred Supplier Contracts Small Business Requirements Maverick Spend Non-mandated Environment With Use of Preferred Suppliers $9.2 Million Year 1 – 50% Adoption Rate $12.6 Million Year 2 – 50% Adoption Rate $16.8 Million Year 3 – 70% Adoption Rate Max Saving $25 Million – 100% Adoption All UC Locations Implemented to Connexxus by 1/1/09 FINANCIAL ISSUES & PROJECTED SAVINGS

  9. Wyndham Hotels – 15% LRA & BAR Starwood Hotels – 20% LRA & BAR Marriott Hotels – 15% LRA & BAR Southwest Airlines – 5% American Airline – 17% Domestic 25% International United Airlines – 15% Hertz Rent-a-car Enterprise/National TRAVEL COUNCIL PROGRAM UPDATE $600,000 Savings

  10. Portfolio of Reservation Options BCD Travel UC Travel Center CliqBook Online Booking System Web Provider Orbitz UC Riverside & UC San Diego- Implementation Started (Launch Date: May 12, 2008) Current Focus Complete Connexxus Portal Complete Profile Management System Complete Data Consolidation Process UC Travel Management Office – Operational Benchmarking & Data Requirements Connexxus Policy Statement Travel Council Program Update(Continued)

  11. High level of participation across all locations Book within the system using preferred suppliers Traveler wins Campus wins UC wins Supplier wins Successful implementation- full use and access to Connexxus portal Support & encouragement from Regents, Chancellors & Senior Management Leverage UC’s purchasing power to reduce the cost of travel KEYS TO SUCCESS

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