Business Travel News - September 28, 2015

8 SEPTEMBER 28, 2015 .com CORPORATE TRAVEL 2015

1 IBM

ARMONK, N.Y.

2014 United States-Booked Air Volume: $570 million

Principal Air Suppliers: American, Delta

Principal Hotel Suppliers: Hilton, Marriott

Principal Car Rental Suppliers: Avis, Hertz

Principal Online Booking Tool: Orbitz for Business

Principal Card Supplier: American Express

Consolidated Global TMC: American Express Global Business Travel

BTN estimates IBM’s 2014 United States-booked air volume decreased by almost 4 percent from the prior year, owing to divestitures. Even so, the technology and consulting heavyweight maintained its position as the largest corporate buyer of United States-booked air travel since BTN began tracking the Corporate Travel 100.

IBM experienced a 7 percent year-over-year reduction in the company’s full-year revenue from $99.8 billion in 2013 to $92.8 billion in 2014, following a 5 percent year-over-year decrease from the previous year.

At the same time, IBM reduced employee headcount last year to 379,592 employees, down 12 percent from a year earlier, when the company had posted its first decline in a decade. Excluding a 35,000 reduction from divestitures, headcount fell about 3. 9 percent in the previous year. This is the first two-year decline in IBM’s workforce since the company verged on bankruptcy in 1993 and 1994. The company appears ready to lay off another 8,000 to 9,000 employees in 2015 as indicated by fourth-quarter earnings charges totaling $600 million for “workforce rebalancing.” Despite the cuts, nearly 300,000 employees still have travel profiles.

In the spring of 2014, IBM signed an agreement to use the Orbitz for Business booking tool through 2020. That tool already has been deployed in 34 countries and is on track to rolled out to nearly 60 countries by year-end. IBM plans to complete the rollout to more than 90 countries, depending on how the company’s business mix changes with acquisitions and divestitures, in 2016.

IBM had used Travelport’s Traversa tool for online booking for several years, but Orbitz also had provided account management and technology support to IBM as part of that arrangement.

The company’s travel procurement team has been advancing the company strategy of being global, local, social and mobile into the travel marketplace and providing such tools to its travelers through a refreshed travel program.

In conjunction with consolidated global travel management company American Express, IBM’s security, human resources and travel procurement teams fully deployed a duty-of-care program through which it can locate and communicate with travelers.

If necessary, travelers can use their mobile devices to connect with International SOS, iJet or the TMC. Internally, the company has raised traveler use of mobile devices to plan, book and manage itineraries.

IBM continues to be among a group of large corporations using Delta’s check-in recognition program, which greets travelers from those accounts and makes note of their company affiliation when checking in for flights.

The IBM airline program includes spending for both indi-
vidual and group travel. IBM’s hotel program compiles a global
directory of hotel properties that meet IBM safety and security
guidelines with prenegotiated rates.

IBM’s car rental strategy is to provide world-class service and constant competitive advantage pricing. When car leasing is appropriate, IBM uses outsourced fleet administration to provide maintenance and other services as specified on an individual country basis. Globally, IBM requires a supplier management structure that can provide consolidated management reporting and information, as well as clear communication management channels starting at the country level. When it comes to other ground transportation for business travel and meetings needs, IBM has a preferred supplier network to provide city-specific services.

IBM makes transient and group reservations through its travel agency, which fulfills online reservations on the ground globally and provides consolidated reporting.

IBM provides a global travel portal that contains all policies, rules and guidelines, U.S. per diem rates, security alerts and links for making online airline, hotel and car rental reservations.

2 DELOITTE

NEW YORK CITY

2014 United States-Booked Air Volume: $445.8 million

2014 U.S. T&E: $1.1 billion

2014 Global T&E: $1.2 billion

Principal Air Suppliers: American, Delta, United

Principal Hotel Suppliers: Hilton, Marriott, Starwood

Principal Car Rental Suppliers: Avis, Budget

Principal Online Booking Tool: Sabre Get There

Consolidated U.S. TMC: BCD Travel

Deloitte U.S. firms in 2014 used proactive demand management to drive compliance. Particular areas of focus included capturing reservations through managed channels; ensuring travelers use preferred suppliers across its air, hotel and ground transportation categories, as well as the preferred payment method; and placing a high priority on risk management across the entire travel program. The professional services firm switched its booking from Orbitz for Business to Sabre’s Get There tool during December 2014.

Deloitte’s United States-booked air volume increased about 10 percent in 2014, while its total U.S. T&E spending grew 10 percent. Domestic U.S. travel accounts for 73 percent of the firm’s total United States-booked air spend. The firm’s 2015 U.S. air volume is expected to rise another 10 percent.

This year, Deloitte is looking to drive operational efficiencies for the travel reservation process and to improve online adoption. The primary goal of the travel program is to build a best-in-class traveler experience for its 70,000 business travelers with the aid of new mobile booking and itinerary management tools and to strengthen risk management through simulations and automation.

The firm maintained its existing travel policy during 2014 and expects to do the same again this year, though travel policy varies by global region. It continues to use BCD Travel as its consolidated U.S. agency, while Carlson Wagonlit Travel provides services in India and American Express GBT handles bookings in Mexico.