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TRW Travel Management: LucasVarity Traveler Integration Meetings

TRW Travel Management: LucasVarity Traveler Integration Meetings. September 1999 Company Confidential. Introductions . Al Senger, Vice President, Corporate & Community Services Harry Pierson, Director, Corporate Services Lois Barbero, Supv/Sr. Analyst, Corporate & Travel Services

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TRW Travel Management: LucasVarity Traveler Integration Meetings

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  1. TRW Travel Management:LucasVarity Traveler Integration Meetings September 1999 Company Confidential

  2. Introductions • Al Senger, Vice President, Corporate & Community Services • Harry Pierson, Director, Corporate Services • Lois Barbero, Supv/Sr. Analyst, Corporate & Travel Services • Tom Horgan, Manager of Account Development, American Express • Sharon Escoto, Manager of Operations, Pittsburgh Business Travel Center • Ross Montalbano, Supervisor/Team Leaders

  3. Discussion Outline • TRW’s Travel Consolidation History • Benefits of Consolidation • TRW Worldwide Travel Policy • Overview • Benchmarking Data • Preferred Vendors • American Express • Travel Agency • Corporate Card • Traveler Question & Answer

  4. TRW Travel Consolidation - History • Summer 91 • Management Committee decision made to move forward with American Express and Ernst & Young travel management studies • January 93 • Management Committee agrees to implement policy on companywide basis • December 93 • American Express selected as sole travel agency for North America reducing the number from 120 agents • December 94 • Travel Services Department is established to negotiate and manage worldwide centralized travel program

  5. TRW Travel Consolidation - History • December 97 • European consolidation completed; down from 56 agencies with American Express onsites operating in the UK and Germany • December 98 • BDM International, a TRW acquistion, was incorporated into the TRW Travel programs and moved to American Express Travel • July/August 99 • Incorporate LucasVarity Aerospace, Aftermarket and Body Systems travelers into TRW programs • September 99 • Incorporate LucasVarity Braking Systems and Control Systems travelers into TRW programs • October 99 - January 2000 • Transition LucasVarity Europe

  6. Benefits of Consolidation • Worldwide travel costs total approximately $300M annually with the LucasVarity acquisition • TRW programs have proven highly successful • Annual cost savings of between $20M-$25M • Inclusion of LucasVarity will offer additional $4M in annual savings • Consolidation allows for central source of data collection, crucial in leveraging TRW strength during vendor negotiations • Ensures consistent approach to administering the travel policy

  7. TRW Travel Policy • Outlined in CEO Memorandum # 13 • Established April 1996 • Revised March 1997 • Revised July 1999 • Applies to all TRW employees • Mandates use of American Express for all business travel • Must use preferred carriers, cars and hotels • Lowest logical airfares required as defined by TRW Travel Services • Advanced planning requested • Connecting flights required based on 90 minute elapsed time rule • No double connections • Two hour window on either side of departure/arrival time • AMEX card use required for travel costs

  8. TRW Travel Policy • Coach for all flights (port-to-port) under 10 hours • Business class for flights (port-to-port) over 10 hours • Upgrades using frequent flyer miles and stickers allowed as long as their use does not increase ticket cost • OIP II and LucasVarity Tier I and Tier II VP’s • May elect First Class on North American flights greater than 4 hours • May elect Business Class on intra-Europe/Pacific and intercontinental flights • Lodging at preferred hotels • Negotiated rates with hotels worldwide • TRW and LucasVarity hotel directories have been combined • Preferred rental car agencies • North America: National, Alamo, Hertz on a limited basis • International: Hertz as primary, Europcar as secondary

  9. TRW Travel Policy • Travelers may retain frequent flyer miles • Travelers must surrender promotional rebates • All travel agreements managed centrally • Director, Corporate Services and VP, Corporate & Community Services responsible • Worldwide scope • Travel Advisory Councils established • Representatives from each operating group (Europe & North America) • Individual exceptions to the policy on a case-by-case basis require prior approval by an EVP • Each operating group responsible for developing written implementation procedures and practices • Policy can be made more restrictive, but not less restrictive

  10. TRW Travel Policy - Benchmarking Traveling lifestyles of employees; equally balance employee needs with business needs. Corporate Culture (Peers 45% / 51%) Measured by the number of topics addressed; 11 are critical. Content (Peers 91% / 91%) Degree of detail provided under each topic. Comprehensiveness (Peers 66% / 55%) How the policy is distributed and who receives it. Communication (Peers 55% / 69%) Adherence to the policy. Compliance (Peers 52% / 79%) Measured by the monitoring and enforcement practices in effect to ensure compliance. Control (Peers 57% / 67%)

  11. Preferred Vendors • Airlines • Northwest/KLM, United/Lufthansa, American, Continental (limited markets) • All preferred airlines (CO not yet included) offer leisure discounts to TRW employees • Car Rentals • National, Alamo, Hertz on a limited basis • Domestic rentals - CDW and Liability insurance provided in negotiated rates • International rentals - CDW provided on the AMEX Corporate Card • Hertz, Europcar • CDW and Liability insurance provided in negotiated rates • Hotels/Lodging • 147 TRW / 58 LV North American properties; 114 TRW / 237 LV International properties • National agreements with Holiday Inn, Radisson and Red Roof

  12. American Express - Travel Agency • Transition to American Express Business Travel Center (BTC) in Pittsburgh • Aerospace, Aftermarket and Body Systems moved on August 2 • Automotive Braking Systems by September 13 • Control Systems by October 4 • Dedicated team of counselors who only service the TRW account • Debbie Krugh, Supervisor for Aerospace groups • Ross Montalbano, Supervisor for Automotive groups • Recent audit conducted • AMEX achieved 99.32% accuracy rating • 3 on-site locations in Europe • UK serviced by Newcastle (Houghton Le Spring) location • Germany serviced by locations in Dusseldorf and Alfdorf • France, Italy, Spain serviced by BTC locations • Plans for an additional on-site in Birmingham Q100

  13. American Express - Travel Agency • Services Provided • Pittsburgh location staffed from 8:00AM - 7:00PM EST • After hours Customer Service Center (Hotline) • Global reach • 3,000+ AMEX offices available to serve TRW travelers • Dedicated AMEX locations in the UK and Germany • Passport/Visa • E-Ticketing

  14. American Express - Travel Agency • Braking Systems Configuration • Initially, an on-site travel agency location will remain in Tech II with one AMEX counselor • Counselor will continue to handle Vice Presidents and VIP travel • When counselor is out or on vacation, phone message will direct travelers to call American Express in Sterling Heights, Michigan • Business need for the onsite will be monitored and reviewed • Remaining business will move to Pittsburgh on September 13, 1999 • AMEX Pittsburgh makes the booking and issues the ticket • Ticket will print in Livonia; counselor will “package” the ticket and deliver to the traveler or • AMEX Pittsburgh can directly send tickets to the traveler • E-Ticketing is also a viable option for domestic travel

  15. American Express - Corporate Card • Required for air, car and hotel purchases • Meals and incidentals if accepted • No pre-set spending limits • Annual card fee waived for TRW • For company business use only • Cardmembers will receive monthly statements of charges • TRW is not liable for charges • Charges are the responsibility of each individual cardmember • Crucial for moving toward a shared service expense reporting concept

  16. American Express - Corporate Card • Cardmembers will benefit from the following services: • Customer Service Center • 24 hours, 365 days a year, toll-free • Traveler’s Insurance • 24-hour door-to-door business travel insurance, luggage insurance and airline default protection • Financial Services • Travelers cheques, lost/stolen card replacement, currency conversion, check cashing privileges and wire transfers • Global Assist Hotline • Referral and assitance service for legal, medical and financial emergencies worldwide • Emergency Funds • Obtain emergency cash funds at Travel Services Offices worldwide • Membership Rewards Program • Accumulate and redeem points in a variety of reward categories

  17. American Express - Corporate CardInsurance Coverage • 24-Hour, Door-to-Door, Business Travel Accident Insurance • $200,000 • Baggage Insurance Plan • Primary coverage of up to $1,250 for carry-on baggage • Secondary coverage of $500, beyond carrier’s settlement, for checked baggage • Primary Car Rental Loss and Damage Insurance • $50,000 for damage to or loss of a rental automobile • Used for all international rentals except Europcar (included in TRW’s negotiated rates) • Domestic rentals other than National, Alamo and Hertz

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