he future of humankind was built on prediction of some sort. No we don’t mean oracles or magic out of witchcraft or voodoo of any sort. The age of powerful algorithms allows one to predict the future and predict the future and bestows the power even to transform it. Now that’s kinda cool.
Tripeur, a radical business travel management tool, is a step forward in this direction when it comes to data management and innovative ways of cost-savings. Usually, any good travel management achieves predictive actions by combining traditional data with information available on public domains such as macroeconomic indicators, commodity prices, holidays and even weather. All or some of these factors are analyzed to identify correlations and patterns, creating actionable predictions for a company or an organization’s future spend, particularly the cost per trip and number of trips. Now, the biggest advantage here is that clients make small adjustments to travel vendor programs and travel policies that can result in substantial cost savings, even as much as 10%.
Saving as much as that requires tailored predictive modelling to your business travel program focussed on three stakeholders: your internal stakeholders including management, finance team and directors, your travellers and vendors and procurement team.
All said and done, you will want to ensure cost control, make your caps fall in line with the market condition and that you deal with the right suppliers.
- Reach out to defined traveller groups to keep them updated of price increases. Discourage non-compliance and motivate them to take actions to stay within the company travel policy rules.
- Suggest an alternative supplier or hint they postpone the trip to some other schedule, given their travel plan is flexible.
- Make suitable adjustment to the caps — either upscale or downscale it—so as to prevent your travellers from approaching suppliers with premium rates.
Internal stakeholders are also key players in a travel management program. There are things you can do to support business heads with a bit of budget planning and intelligence on future prices. Here are some areas that can be improved:
- If your team is already familiar with a travel location that has had a big impact on business, it becomes lot easier to take necessary actions as for the travel budget.
- Actionable insights on business travel trends
- Locations where team meetings are held.
And just as importantly, you need to be proactive when negotiating deals, and what market trends are likely to happen. In order to achieve this:
- Employ predictive analytics as to how you frame your negotiation before, during, and after
- Improve your supplier program by keeping a watch over the number of suppliers. You can achieve this by adding more fares, suppliers, rate types, classes or ancillary and conveniences and focus on the areas likely to increase.
- Make your supplier program better by managing the number of suppliers. You can do this by adding more suppliers, fares, classes, rate types, or ancillary and amenities and focus on the areas expected to increase.
- Adjust your negotiation rate targets and caps.
- Give a fresh look to contractual goals (market share, volume) established by the vendors and suppliers, and see to that your rate types and negotiated classes are available.
- Make your online booking tool fall in line with your predictive analytics outcomes and negotiation strategy.