Case study:Cost reduction in the field of the international business travel
Managers of HR department or General Affairs, who are seeking for the cost reduction in the field of the international business travel
He was ordered by the superior to reduce the cost by 10% from the previous year .
Situation before our involvement
Situation
- business travelers
-
<The choice of flights and hotels>
They can choose the flight & hotels in their favor (Mileage Program and their preference in services). -
<The choice of travel agency>
A number of Travel Agency are involved for a long time.
No proposal of cost reduction plan from the agency.
- Management division :
international dept. General affairs dept. Accounting dept. -
<Payment of travel expenses>
All related costs are combined. No clear separation of Airfare and Travel Agency Fee. -
<indirect operations>
Following the diverse needs of business travel arrangement, Internal process became more complicted and needed more transactions.
There are no intention of the cost reduction.
Our proposal and steps taken to solve the problem
1.Introduction of special price based on our total volume.
2.Build up the clear Travel Policy on international business travel
- Set up the Travel Policy : preferred airlines and hotels by destination
- To monitor and manage compliance ratio
- To consider the type/conditions of ticket
We can provide with the consulting service about the suitable way of cost reduction based on the analysis of Travel data.
Situations after our involvement
Effects
- business travelers
-
<Flight and Hotel>
Utilization of Preferred Airlines & Hotels.
Cost reduction as a favorable result. -
<The Choice of Travel Agency>
One travel agency is chosen as Travel management Company by the ability of consultation.
- Management division : international dept. General affairs dept. Accounting dept.
-
<Payment of travel expenses>
Clear separation between airfare and Travel Agency Fee -
<indirect operations>
By outsourcing the complicated process, No involvement of non-core business exists.
Travel expenses in 2011 was reduced by nearly 15% from the previous year.
The Voice of Customers
- We didn’t expect at first hand that we could achieve such a great effect in arranging international business travels with the assistance of Nissan Creative Services. It was great to venture to ask Nissan Creative Services, although we had been doing business with A travel agency for years
- Thanks to the comprehensive assistance, such as for the application of business visa & special visa for expatriate and hotel arrangement, we could dramatically reduce our internal transaction.
We also appreciate the special offer of hotel charges.
■Another case study
- Introduction of Credit Card Payment
By this arrangement, the application of travel insurance won't be required anymore. - Introduction of Advanced Request-Policy
By this arrangement, more the chance to get a discounted air fare, more reduce the travel cost. - Recommedndation to use Non-Japanese Airlines
