Materials and Services - Indirect


Navigating through Turbulent Headwinds

Issue 7 - November 2012

While airline bankruptcy presents uncertainty and risk, it may also present travel procurement professionals with savings opportunities. Furthermore, an outright ban on using a bankrupt but operating airline could force it to move from reorganization to liquidation, which would reduce another competitive option in the market and potentially push prices even higher.

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Uneven Economic Recovery Leading to Opportunities in Hotels and Airlines

Issue 6 - July 2012

The promising signs of recovery we witnessed at the start of 2012 in the travel sector have fizzled out in many key global markets, creating opportunities for negotiation in hotel room rates in some key markets. In addition, we discuss ways to get full visibility into airline ancillary fees despite the seemingly limited room for negotiation in this market.

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Tough times for airlines

Issue 5 - April 2012

2012 brings uncertainty with increasing fuel costs, uncertain demand, and the potential for increasing capacity and competitiveness in most regions. Are further airline bankruptcies on the horizon? Although the International Air Transport Association (IATA) forecasts a global profit of $3.5 billion, this may flip to a loss of $8.3 billion if Europe experiences a deep recession. Targeted sourcing and demand management should be applied to maximize savings.

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Policy and compliance

Issue 4 - January 2012

Traveler compliance ultimately affects a company’s bottom line and one of the biggest problems for companies and the most common breach of corporate travel policies is the failure to book air travel far enough in advance. Recent compliance studies have shown that strong policy enforcement and compliance of the corporate travel policy could reduce annual travel spend by 45 percent or more.

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Hotel rate increase in 2012

Issue 3 - September 2011

The recent economic turmoil, sovereign debt concerns, budget austerity and natural disasters may depress demand and limit hotel rate increases in 2012. However, with corporate travel continuing to grow, sources suggest that there will be a high single digit rate percentage increase in negotiated hotel rates for 2012. Procurement professionals will need to deploy more creative hotel sourcing strategies to be effective in this type of environment.

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On-line booking tools propels travel savings drive

Issue 2 - June 2011

Online booking tools have moved from the initial US market to being a very viable solution globally. If promoted correctly with change management initiatives, online tools can inject massive savings to a travel program by reducing agency transaction costs significantly. They also drive what is known as “visual guilt”, prompting travelers to book lower options.

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To travel or not to travel?

Issue 1 - March 2011

It may sound a bit cliché but those companies that adopt a wait and see attitude may find themselves falling short in a critical area of their sourcing policies. Despite the advancement of technology in conducting ‘virtual meetings’, more companies in the US are expected to increase travel in 2011, and having a preferred agency can mitigate unnecessary costs by consolidating to a single source.

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Transportation & Logistics

Courier Providers Target Low-cost Service Levels
During the recession, many shippers opted to absorb a few additional days into their supply chain to save on lower cost express services. Unfortunately, the cheaper, slower service levels are the least profitable for carriers, and they now look to cover those losses. With potential savings from demand management now tempered, direct negotiations will become even more critical, notes Accenture.
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