8 SEPTEMBER 28, 2015 .com
CORPORATE TRAVEL 2015
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
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
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.
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.
American Express serves as Deloitte’s corporate card supplier, and
the firm uses its own internal expense reporting system customized