Sales & Marketing Management - May/June 2008 - (Page 29)

Tech to the rescue, again There are a number of ways companies can use tech to trim costs, the most obvious being online travel booking tools. On average, companies can cut their transaction fees by 50% compared with bookings via phone. And while many people are aware that using online sites can cut airfare and hotel costs, they also help road warriors become more efficient. For example, by plugging in the address of a meeting, travelers can pick the closest hotel to save time and avoid congested streets and highways. Sometimes tech’s benefits aren’t even directly related to the travel itself, but rather to the “busy work” it makes necessary, such as filling out expense reports. “One thing companies can do in any economic climate is to streamline and automate the tedious processes that cost them money and cost their travelers productivity,” says Fletcher, who is the former CEO and president of NBTA. “This accomplishes two things: First, it drives down the cost of travel to the company by ensuring that all travel spend is within policy, and provides visibility into all of the travel spend. “Second, companies can save hard dollars by making the process of tracking and managing spend much more efficient. Imagine booking a trip online, taking the trip, then returning to your office to find your expense report already completed, with accurate data from your booked travel and actual spend, plus ereceipts sent directly to your electronic expense report by hotel, car rental companies and other travel suppliers. Spend is accurately reconciled, employees are happy because their work is done for them, and the company has complete visibility and control over travel spend. “Technology is an extension of a gifted travel manager’s abilities,” Gurley says, “freeing an executive from travel-related busy work so they can focus on higher corporate strategies that boost growth, contain costs and increase traveler productivity. “What technology costs the industry in reducing the number of events that require a physical presence [via Webinars, virtual trade shows, etc.], it pays back ten- fold in reducing time out of the office, increasing productivity, and allowing resources to be redirected for revenue-generating programs,” Gurley says. Do more with less overseas There’s a new trend that’s going to have an increasing impact on business travelers: the aforementioned global market. While troubles here in the States might be hindering economies all over the world, few businesses can meet their long-term growth goals without doing business in other countries. International travel does indeed cost more, especially given the dwindling power of the U.S. dollar in foreign exchange markets, but the toll it takes on salespeople is even greater. Travel fatigue hurts salespeople during their meetings, potentially decreasing the chances of making the sale, while job dissatisfaction due to the “The greatest challenge for travel managers is maintaining traveler productivity and program effectiveness at a time when recession typically calls for making cutbacks.” rigors of long, continent-hopping flights can hurt a company’s employee retention. Drawbacks notwithstanding, international travel is on the rise, even though there’s little room in most travel budgets for the types of creature comforts that make the trips easier, Fletcher says. Not many of those roadweary salespeople have the option of flying first class. “I can tell you the industry is predicting a downgrading of corporate policies, but that is a tough request when you are asking travelers to do more international travel with quicker turns than in the past,” Fletcher says. “Many a corporate traveler find themselves landing in the early morning and are asked to go directly to meetings after an overnight flight. Are they ready to perform after being in economy class? That is an answer for each company to decide. “One way some corporations are dealing with it is the use of upgraded economy. Carriers such as United (Economy Plus) and British Airways Premium Business have offered an enhanced coach that has become very popular with corporate travelers that choose, or are required, to fly less than business class. “I think you will also see many approved first class travelers downgrading to business, again, making it even less available for upgrades and even purchases,” Fletcher concludes. — Izabella Iizuka MAY/JUNE 2008 SALES &MARKETING MANAGEMENT [THE PULSE] 40 PERCENTAGE OF BUSINESS TRAVELERS WHO SAY THEIR EMPLOYER WOULD PAY FOR A SEAT UPGRADE OF UP TO $50 AT CHECK-IN. SOURCE: ORBITZ FOR BUSINESS CORPORATE TRAVELER SURVEY www.salesandmarketingmanagement.com 29 http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - May/June 2008

Sales & Marketing Management - May/June 2008 Contents Editor's Letter Brian Tracy University Smart Sales Sales Strategy Smart Marketing Marketing Strategy Smart Management Management Strategy The Minister of Culture Become a Value Merchant Incentives/Motivation Streamlining Business Travel Book Excerpt The Way I See It

Sales & Marketing Management - May/June 2008

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