Working with your Corporate Travel ProvidersCarlson Wagonlit Travel

Margaret TangenSenior Director, Program ManagementCarlson Wagonlit Travel

Candace HaideyManager, Business Development

Carlson Wagonlit Travel

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Where we are headed today

• Economic context• Key areas of focus• Putting your program together

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Economic context: Opportunities and challenges

• Global economy starting to recover; though recent events show fragility

• Business travel is rebounding but heavily dependant on the economic recovery

• Energy costs high and volatile• Unpredicted events continue to impact

the global economy

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Key areas of focus: What can you do to succeed in these conditions?

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Peer Priorities

Source: CWT Travel Management Institute survey of 187 travel buyers worldwide, September – November 2010

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Air: An ongoing dance

What you should knowIncreases in air fares; higher than planned – up 16%YTD vs. 2010*Oil priced 23% higher YTD vs. same time last yearEvolving supply and demand pictureHigher fares and fuel surcharges

*domestic economy class, CWT North America clients

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Hotel: Intelligent defence

What you should knowSuppliers have pricing power and are raising ratesOccupancy is a real challenge in key NORAM markets

E.g., Toronto at 68% for 2010, NYC at 80.9%Construction pipeline virtually nonexistent in NORAM

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Ground: Emerging opportunity

What you should knowLimited focus on this discipline unless air and hotel have been fully optimizedModerate price decreases in some marketsHybrid vehicles are still limited

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Meetings and events: Rebounding and evolving

What you should knowGrowth in Meetings & Events (M&E) activityIncreased focus on Strategic Meetings Management (SMM)Greater focus on risk managementInterest in synergies between M&E and transient travelCost per attendee has increased as suppliers (hotel, air, etc.) raise prices

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Technology: Fads vs. foundations

What you should knowA lot of buzz; no “one-size-fits-all” approach for all companiesA wide rage of technology to choose from Advances in technology make it easier to communicate with travellers but also increase the travellers’ access to information

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Traveller compliance: An area of significant savings

What you should knowA lingering challenge for many: rated the #1 2011 priority by Travel ManagersTechnology enables tracking and compliance enforcementCommunicate compliance results to senior management

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Expense management and reconciliation: Getting the complete picture

What you should know:50 percent of travellers say that out-of-policy bookings are not followed up on by management*Companies are recognizing that to boost compliance and achieve greater savings they need to focus on their T&E policy, their internal processes, and the systems that they useAlignment between your TMC and expense management system captures a clearer picture of your spend, increasing your leverage during supplier negotiations

*CWT Travel Management Institute Study

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Putting your program together

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Putting the pieces together

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Traveller compliance: Best practices

Best Practices:•Engage management throughout the organization•Provide travelers with clear guidelines•Promote compliance through training and communication•Drive compliance at the point of sale•Track progress and correct where needed•Benchmark industry performance

Case Study:Global Energy Leader needed to optimize its hotel program.

Solution:•Created communication plan to get stakeholders more involved and coordinate better processes•Engaged in market-specific discussions with suppliers•Implemented Policy Messenger to communicate and reinforce the travel policy

Results:•Improved communication and stakeholder engagement•Improved hotel coverage•Average daily rate decreases over the last three quarters•7 percent increase in program compliance

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Supplier Negotiation: Best practices

Best Practices:•Consolidate spend data•Understand traveller needs and behaviour•Design an effective travel policy•Focus on negotiations that are right for your company•Measure and track traveller compliance

Case Study:Industrial manufacture’s air program was loosely managed and needed help building a stronger program

Solution:•Conducted an assessment of the client’s current program•Highlighted the client’s optimal preferred carrier strategy•Recommended that the client enter into strategic relationship with an additional airline

Results:•Increased the number of discounted markets by 12%•Saved an additional 29% on their overall air spend

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Expense management and reconciliation: Best Practices

Best Practices:(Place holder for additional content)

Case Study:(Place holder for additional content)

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Thank you.