Procuring domestic air travel: strategies offer savings

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Domestic air travel.jpgMost organisations agree that there are savings to be had in domestic travel. The big questions are:

how significant are these savings?
and
how do we realise these prospects?

Does a saving of up to 40% on air ticket prices or a 100% additional discount on your ticket price versus your corporate fare discount sound unrealistic? There is evidence to support that this is possible and that there are organisations achieving these discounts on a regular basis, Karen van Staden of benchmarking organisation Purchasing Index tells SmartProcurement.

What’s more exciting, is that businesses don't need to spend hours and days formulating new strategies and negotiating with suppliers. Procurement just needs to ring-fence the relevant players, adopt them into a dedicated sourcing system and surf for the best buys well in advance.

From a strategy perspective you need only ask yourself these simple questions:

• Having recognised that the savings opportunities are available to your business, is the current approach you adopt to achieving these savings the correct one?
• Or, are there suitable alternatives?

Purchasing Index believes so. Based on its benchmarking best practise it urges travel buyers to consider a more robust approach to the domestic air travel market.

Be prepared to consider a fundamental change to the current way most of us do things, one that will not necessarily bring results overnight, but one that will be more cost effective and yield solid results in the long-term.

More importantly, prepare to embrace a process that will strengthen relationships between travel management, procurement, business and the traveller.

For more information on procuring domestic travel contact Karen at karen@pibenchmark.co.za

Karen van Staden, together with other expert presenters from the travel category, will be speaking at the upcoming ITMSA & SmartProcurement travel Buyers Forum on May 12, 2011 at the Protea Hotel Wanderers in Johannesburg - to discuss the fundamental differences in the approaches of corporate travel managers versus procurement travel category specialists.

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