Seven Travel Cost Saving Strategies with Egencia

1 TM. Seven Travel cost Saving Strategies with Egencia Introduction Seven cost - Saving Widely recognized as one of the top three most controllable expenses, Travel Strategies and entertainment costs, and business Travel costs in particular, are expected to 1. Improve Policy Enforcement continue to rise this year. 2. Maximize Online Adoption 3. Consolidate Spend The National Business Travel Association's (NBTA) 2008 Business Travel 4. Maximize Negotiated Overview & cost Forecast predicts average airfare increases of 6 to 10 percent, Rate Usage hotel rate increases of 5 to 7 percent and car rate increases of 5 to 7 percent. 5. Leverage TMC Agreements 6. ely on the International R. Experts Although the amount of company Travel can Strategy #1: Improve Travel be restricted, every CFO recognizes that Travel 7.

2 I ncrease Utilization of remains an essential component of any business Policy Enforcement Unused Tickets and there are limits to possible reductions. To help curb expenses, 88 percent of companies in a recent NBTA survey1 have some level Given that many employees must Travel for of mandate in place to enforce Travel policy work, reducing average trip cost represents the compliance. The chart below illustrates the actual greatest savings opportunity to most companies. savings realized by Egencia customers as a result In this white paper, we'll explore Seven Strategies of employees booking in-policy. to effectively lower your company's overall Travel expenditures, based on our experience For every 1,000 trips incrementally booked in- at Egencia and the experiences of our most TM policy, the average savings are $302,000.

3 For a successful customers. company spending $5 million annually on airfare, that equates to a 14 percent increase in policy Average savings vs. Travel Product Out-of Policy Purchases*. Domestic Economy Air $178 per ticket Hotel $105 per stay Car $19 per rental *50 Largest accounts, January - June 2007. Seven Travel cost Saving Strategies with Egencia , May 2008. For more information, call 1-866-328-0110 1. 2008 Egencia , LLC. All rights reserved. Expedia, Egencia , and the Egencia logo and Get Ahead are either registered trademarks or trademarks of Expedia, Inc. in the and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners. TM. compliance, which is not an unrealistic goal for Strategy #2: Maximize Use of many companies.

4 One company that previously handled all reservations through internal Travel Online Booking Technologies arrangers allowed its employees to self-book with Booking Travel online can both decrease service Egencia and has consistently enjoyed over 90 fee expenses and reduce trip costs by presenting percent compliance across its air, car and hotel employees with a wider variety of low cost , in- bookings. policy Travel options to choose from. 42 percent of companies surveyed by the NBTA2 either Enforcing a Policy Mandate mandate or are planning to mandate the use of To effectively enforce a policy mandate, it is online booking tools. important to make it easy for employees to identify in-policy Travel options at the time of Lower Your Service Fees purchase.

5 Egencia 's online booking technology is Reducing service fee expenses through online specifically designed to: booking is very straightforward. Calling a corporate Travel agent can cost $30 - 40 or Highlight the best in-policy Travel options more while Egencia 's online fees are just $5 - 7, available depending on the service package selected. Display alternative in-policy options when These lower fees equate to $23,000 - 35,000 in out-of-policy selections are made savings for every 1,000 air transactions booked Require employee justification of out-of- online. policy purchases using company-specific reason codes Empower Employees to Maker Smarter, Lower cost Travel Choices Provide e-mail notification to the Travel Frequently described as the visual guilt' effect, manager and employee's manager if an out- when booking online, employees tend to choose of-policy purchase occurs, and if desired lower- cost itineraries than when they call an Require pre-trip approval prior to allowing agent.

6 Online, employees can: out-of-policy purchases to proceed Consider a greater number of Travel options Travel Managers have access to online charts Easily identify options that are out-of-policy and reports that allow them to track compliance, Clearly see available negotiated air, car and investigate out-of-policy purchases, and hotel options identify top-spending travelers to monitor their performance toward their company's policy objectives. Policies can immediately be adjusted to address any issues identified. with Egencia , your company's ability to enforce and sustain a policy mandate is greatly improved. Seven Travel cost Saving Strategies with Egencia , May 2008. For more information, call 1-866-328-0110 2. 2008 Egencia , LLC. All rights reserved.

7 Expedia, Egencia , and the Egencia logo and Get Ahead are either registered trademarks or trademarks of Expedia, Inc. in the and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners. TM. Average savings Online Travel Product vs. Via Agent* Average Dollars Saved*. Domestic Economy Air 11% savings $51 per ticket Domestic First-Class Airfares 18% savings $168 per ticket Hotel Nightly Rates 13% savings $54 per hotel stay Car Daily Rates 8% savings $13 per car rental *50 Largest accounts, January - June 2007. These features make it easier to find a low cost , Strategy #3: Consolidate Spend in-policy itinerary that meets their requirements. From a recent study of Egencia 's 50 largest with a Travel Management customers, the chart at the top of the page Company clearly illustrates the extent of the online savings As procurement best practices are increasingly possible.

8 Applied to Travel expenditures, companies are mandating the single-sourcing' of Travel through For every 1,000 domestic business trips booked a preferred Travel Management Company (TMC). online, these companies realized average savings This consolidation of spend helps reduce costs of $121,000 (assuming 3 percent use of first by ensuring that employees are always subject class airfares). Combined with the fee savings Online Adoption to company policy and can always access mentioned above, the savings available from high available corporate negotiated fares at the time online adoption is approximately $150,000 per of purchase. A recent study of air purchases 1,000 trips. 90% by Topaz International confirms the value of 82%. Plus, the average Egencia customer enjoys two spend consolidation, finding that business Travel 52% unique advantages: itineraries booked by a designated corporate Travel management company averaged $56 less than the 90 percent of transactions are booked Forecasted Egencia Egencia exact same itinerary booked on a public internet 2008 First 75 Overall online versus an industry average of just 52.

9 Average Days* Average site. 4 Combined with Egencia 's strong reporting percent3. *50 Largest accounts, January - June 2007. tools, consolidation also provides the complete 82 percent of transactions are booked online spend visibility required to effectively manage your during the first 75 days of launching their program and maximize your negotiating power program with Egencia with suppliers. Fee savings are not only greater, but immediate for our customers. Seven Travel cost Saving Strategies with Egencia , May 2008. For more information, call 1-866-328-0110 3. *50 Largest accounts, January - June 2007. 2008 Egencia , LLC. All rights reserved. Expedia, Egencia , and the Egencia logo and Get Ahead are either registered trademarks or trademarks of Expedia, Inc.

10 In the and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners. TM. Negotiated Average savings vs. Average Travel Product Rate Usage* Published Rates* savings *. Domestic Air 40%. Economy Negotiated Air 40% 5% $21 per ticket First Class Negotiated Air 40% 8% $67 per ticket Negotiated Hotel Rates 30% 6% $22 per stay *50 Largest accounts, January - June 2007. Customer Success Make Consolidation Easy for Employees Strategy #4: Maximize Highlight Achieving spend consolidation can be difficult, Negotiated Rate usage By increasing the use of Egencia especially if employees are used to choosing hotel rates from 50 - 80 percent of where to purchase Travel , often at online agency Maximizing the use of corporate negotiated reservations, the average nightly rate sites such as According to the rates increases your company's ROI from these for FTD increased just 3 percent agreements and can improve your ability to NBTA5, the new generation of business travelers from 2005 to 2007 while industry acquire deeper supplier discounts in the future.