Managing travel procurement from the cloud

From_the_cloud.jpgA cloud-based e-procurement tool has the capability to host a fully fledged online travel management solution, Sarah Holford, Head of Account Management & Implementations at, tells SmartProcurement.

The online workflow makes for easy access and cost efficiency all bookings (domestic, regional, international and groups) can be coupled to an e-system, says Holford.

Case Study

Tsebo Outsourcing Group (Tsebo) applies’s e-procurement platform as a fully fledged Travel Management solution. It enjoys an e-travel service that is flexible, has a 24/7 offering and multiple approval methods (i.e. SMS, mobi, email and online).

DarrylLuscos.jpgAll documents issue online and in real time -  within minutes from approval, says Darryl Luscos, group procurement systems manager for Invalu, Tsebo Outsourcing Group’s dedicated procurement division.

“The minute the first PA committed the first purchase order, I got an email saying: ‘Wow, this is fantastic, it took me two minutes to do the entire booking and I’ve already got the e-ticket!’

Luscos drove the adoption of as Tsebo’s e-travel solution.

At a meeting with SAA, shortly after taking on the portfolio, the carrier informed Darryl which band Tsebo fitted into and, therefore, what discount it qualified for. Darryl had no facts of his own; he had no idea what they were spending.

“I landed the travel portfolio for my sins – but mostly because of its integration capability with – and it has been an absolute pleasure to manage since.”

In travel, the price is controlled by the airlines. You are a price taker. But what you can influence is internal booking behaviour, like purchasing in advance to get the best rates and savings of the day. Through the system we manage behaviour right down to the lowest level, being the item, says Luscos.

Since Tsebo moved travel onto’s fully integrate online booking solution, a reduction in transaction cost has been recorded, he says. “Our total saving is 35% when compared with traditional booking costs overall. Just by going online saved us about R600 000 in transaction fees (assuming we maintained the same level of spend as the previous year). Factoring in visual guilt, we’ve been able to save a further 16% in airfare costs.

The system makes such detailed information available to bookers and travellers, he doesn’t have to actively manage behaviour anymore. “The traveller has taken responsibility for their own actions – as has the line manager when approving the transactions.

Holford notes, however, that when an executive requires that extra special service or high touch booking assistance, as a travel solutions partner has a team of dynamic staff waiting in the wings.

For more information on applying cloud-based e-procurement in your organisation email

Darryl Luscos was interviewed by 'Business Travel Now'.

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