Freshen Up Your Mature Travel Program

1. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace 1A: Freshen Up Your Mature Travel Program Stacey Clifton, Strategic Sourcing Manager| Harvard UniversityBradley Seitz, President | Topaz InternationalWill Tate, Senior Vice President | Management Alternatives, Inc.

2. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Connecting Procurement and the Traveler Experience Will Tate Senior Vice President Management Alternatives 972-599-2833 willtate@manage-alt.com

3. Connections?

4. Locking in Freshness • Rise of the employee • Competition for Talent • Duty of Care Emphasis on Procurement • Savings Plans and Guarantees • Job Performance (you look bad!) Marketplace Competition • Better, Personalized Options are Everywhere • Ubiquitous chances to break policy

5. Case Study Scope Survey Sticker

6. Case Study The Problem • Improved Value in Key Hotel Markets • Prior Sourcing Strategies Ineffective The Solution • Gain the Voice of Customer for Key Hotel Markets • Create Value Ratings

7. Scope: Survey: Sticker:

9. Key Supplier Meetings • Period to Adjust • Re-measured in 3 Months • Preferred Status may change • Gain Loyalty • Removed from Program

11. Results! “Top Employee Rated!” -4% Rate +8% Sat +12% Sat -3% Rate +190% Only Straggler Volume remains +122%

12. Case Study Summary The Problem • Improved Value in Key Hotel Markets • Prior Sourcing Strategies Ineffective The Solution • Gain the Voice of Customer for Key Hotel Markets • Create Value Ratings The Benefits • Improved Value in Key Hotel Markets • Removed underperforming properties • Measurable Improvement with Key Partners • Better traveler experience

13. Tired Sourcing Stale Sourcing There Is No Feedback Loop! What’s Missing?

14. Why don’t we… ? Why don’t we… • Travel on buses rather than airplanes? • Stay at hostels or shelters? • Share hotel rooms? • Set per diems at bare minimums? • Conduct more meetings on phone?

15. Because… ! Because… • Care for business • Productivity • Competition for Talent • Deemed too important • Care for traveler • Convenience • Duty of Care • Quality Measures!

16. Stale Sourcing Feedback Loop

17. Stale Feedback Loop Circle of Concern Reactive Circle of Influence

18. Nature of change demands a dip in understanding and productivity You will have a LONGER Walk through the ‘Valley of Despair’ – Without…Service Level Knowledge Value Creation Launch Goal: make the ‘Valley of Despair’ as short and shallow as possible to regain and realize expected benefits from change Value Time

19. Fresh Baked Case Study

20. Fresh Baked Case Study The Problem • Recent Airline Sourcing Criticized by Management • “Too focused on savings” not traveler experience The Solution • Gain the Voice of Customer on for New Airline Partnerships

21. Fresh Baked Case Study Yay!! You are aware of the recent change in airline partnerships for our company. Please comment on this change: • How has it impacted your travel experience? • Made travel more difficult • Made travel less difficult • No change • What is your experience with the new airline partners? • Worse than the prior partners • Better than the prior partners • No change 92%!! 89%!!

22. Case Study Summary The Problem • Recent Airline Sourcing Criticized by Management • “Too focused on savings” not traveler experience The Solution • Gain the Voice of Customer on for New Airline Partnerships The Benefits New Airline Partnerships Working Well! • Anecdotal Opinions Lost Relevance • Validation TO Travelers • Validation OF Sourcing Effort

23. Old & Tired Sourcing Feedback Loop Circle of Concern Reactive Circle of Influence

24. Sparkling Sourcing Feedback Loop Circle of Concern Proactive Circle of Influence

25. Why Should Buyer’s Care? Employee Care • Improved Traveler Experiences • Improves Duty of Care More Meaningful Preferred Relationships • Show Why Preferred Suppliers Matter • Incremental Savings is Diminishing Proposition • Improvements can be Replicated Measures toward Progress • Show Worth Differently • Program Improvements Period over Period

26. Why Should Seller’s Care? Why Should Seller’s Care? Sell on Service • Becomes Measurable • Could offset Pricing Pressures Awards • Improved Supplier of the Year! • Supplier of the Year! More Meaningful Preferred Relationships • Success means less portfolio turnover • Reference for Other Customers

27. Staying Fresh • Own the Traveler Experience • Formalize the Satisfaction Survey Process • Quantify Results • Broaden to all Key Suppliers • Partner for Improvements • Recurring Reviews • Decrease Non Performers / Increase Performers

28. Your Travelers…

29. Your Boss…

30. You!

31. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Freshening up a Mature Program Stacey Clifton Strategic Sourcing Manager Harvard University 617-495-9308 stacey_clifton@harvard.edu

32. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace • Roadmap • Where we are – current state of our program • Where we want to be – how do we get there?

33. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Harvard Travel Program Overview • Non mandated environment, estimated “compliance” of 66% with preferred travel agencies • Decentralized institutional structure • Travel Policy “Strongly Recommends” that travelers use preferred vendors

34. Harvard Travel Program Overview • Six Travel Agencies (7 including Athletic Travel) • Provide access to Harvard negotiated pricing with airlines, car rental, hotel and other preferred travel vendors • Airline Partnerships • Agreements with 8 Airlines providing Harvard travelers with discounts ranging from 1 to 69% off various fare classes • 3 Car Rental Vendors • Discounted rates which include insurance • Hotels • Local • Chain wide • Sedan Services

35. Harvard Travel Program Benefits • Provide savings based on negotiated contract pricing with airlines and other suppliers versus generally available rates. Airline discounts range from 1-69% off applicable fares • FY’11 air savings totaled $5.3M, estimated 30% off regularly published fares • Exercise duty of care – all of our agencies send feeds to International SOS • Assist travelers if necessary while on the road • Reinforce compliance with Fly America Act for air fare purchased with federally sponsored funds • Track and report C02 emissions to Office for Sustainability

36. What can we be doing better? Solicit feedback from Senior Leadership, Travelers and Travel Arrangers through: Focus Groups Surveys Executive Sponsor Meetings

37. Where we want to be • Traveler Perspective • Better discounts/value • Easier to use website and Expense Management Tools • Improved service from our travel vendors • Broader range of discounts • Support Meeting and Events Planning needs • VIP agents Senior Leadership Perspective • Increased savings • Improved compliance to policy and use of preferred vendors • Better visibility into spend – by school, department, traveler behavior • Better reporting -Duty of Care, CO2 emissions

38. Senior Leadership Perspective Current Program Challenges Potential Opportunities Current expense system provides minimal visibility into travel spend which limits our • Ability to negotiate effectively • Understanding of traveler behavior • Ability to identify travel patterns Difficult to quantify key performance indicators for program • Accurately measure level of engagement • Savings realized and potential opportunities • Out of policy spend/policy compliance Safety and Sustainability targets are not easily measured • Traveler tracking (Duty of Care) • Report on CO2 emissions • Implement an Expense Management System • Utilize additional data to identify further savings/value opportunities with both existing vendors and new vendors • Use additional data to understand drivers for non-compliance • Measure Key Performance Indicators and use the results to improve the program • Improve efficiency in the reimbursement cycle • Automated auditing • Holistic view of travel expenses

39. TravelerPerspective Challenges Opportunities Travelers and Arrangers FAQs • Who are our preferred travel vendors? • Why should I use our preferred travel vendors? • How do I (and Harvard) benefit by using these preferred vendors? Travelers and Arrangers Perceptions • “The travel agencies don’t get me the lowest fare” • “I can do it easier myself” • “It’s my job to shop for the best fares” • “I need VIP services” Current Expense System is not easy to use Communication Strategies • Quarterly Dean’s Travel Board Meetings • Community Outreach • Collaboration with the different schools and departments • “E-news” and Various Publications • Travel Website • Travel Fair Benchmark Pricing and Service Levels • Third Party Fare Audits (Topaz) • Traveler Surveys and Focus Groups • Implement an Expense Management System • Time savings in expense report preparation • More accurate reports • Faster reimbursement

40. Current Initiatives • Develop New Website – easier to navigate, done in collaboration with schools and travelers • Partner with Passport and Visa Services Providers • Continue to partner with Harvard Affiliates to leverage their travel volume to receive deeper discounts • Support Meeting and Events Planning needs through introduction of new internal and external providers

41. Travel Website A new travel website and portal was launched in March 2011 The new site includes links to school specific policies and was developed with input from a broad range of travelers and travel arrangers

42. Keeping it “Fresh” • Continue to “check in” with travelers, arrangers, senior leadership • Make sure we’re meeting their needs (survey’s, focus groups,audits) • Share audit/survey results • Evaluate and address feedback • Explore opportunities for new discounts and service offerings – dining, airport parking

43. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Thank You!

44. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Measurement for Continuous Improvement Bradley Seitz President and CEO Topaz International 503.828.0993 Brad.Seitz@etopaz.com

45. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Today’s Keywords • Audit • Measurement • Verification • Benchmarking • Validation • Assessment

46. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Performance Measurement;The what, why and who

47. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Policy:How do you measure Policy Performance?

48. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Airfare:The Classic

49. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace TMC:What do you want?

50. Annual Conference & Tradeshow • Celebrating 26 years of service to the Collegiate Travel Marketplace Hotel:More than just a rate?