Creating a State Travel Program

1. Creating a State Travel Program Get them where they need to go and save the state dollars!

2. Today’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

3. Today’s Topics • Why have a program • The 4 Travel Program Points. • Travel Policy • Finance Considerations • Travel Management Providers • Preferred Providers

4. Why 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

5. The Four Program Points Travel Policy Travel Mgmt Provider Finance Preferred Providers Air, Car, Hotel

6. Travel 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

7. Travel Policy Requirements • Pre-trip Approval • Mandated use of your contracts • Authorization number for booking • Required form of payment • Exception process • Post Reimbursement Procedures • Other

8. Travel 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

9. Travel 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.

10. Finance • Choose a product with a RFP ?

11. Finance 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”

12. Finance Points 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

13. Travel 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

14. Advantages of One Benefits of using just one Credit Card and Travel Management Provider include: • Better Compliance Control • Management Reports • Reconciliation of Accounts • One Stop Shopping for travelers • Easier Problem Resolution

15. Preferred Providers • Airlines • Car Rentals • Hotels

16. Airlines

17. Airlines • 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)

18. Airline Tri-Fecta Multiple sources viewed as risky by airlines = higher prices Single Form of Payment Single Travel Mgmt Provider Authorization / Compliance Control

19. Benefits 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.

20. Car Rentals

21. Car 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

22. Hotels

23. Hotel 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)

24. Hotel 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)

25. Travel 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.

26. Thank You Questions ?