Stage1First, undertake an analysis of your current business travel purchasing. Expect to make savings of between 5%-10%. Additionally, look at ways of making improvements to processes and procedures. A travel tender review is a great opportunity to instigate change.
Your recommendations should be written into a "Business Case" for undertaking a travel tender.
Stage 2
Prepare a supplier prequalification document containing the recommendations made in stage 1. This will save you time as it eliminates the business travel suppliers who are not suited to servicing your travel tender requirements.
Most travel suppliers will extol their capabilities whilst ignoring the risks to the business travel buyer. The prequalification stage helps to mitigate your risk.
Stage 3, involves the design of the main business travel tender document. It must cover financial and service aspects. Most business travel suppliers or travel management companies (TMC's) offer similar services.
You want only the best fit for your own company requirements. This could be a global travel management company or a smaller niche operator. There is not a one size fits all approach and only by asking insightful and revealing questions will you confidently source a supplier best suited for your needs.
Stage 4
The evaluation of a travel tender requires in-depth analysis and we recommend you use a weighting system. The weighting helps to remove any subjectivity and represents the value and importance to your own company needs.
The evaluation is supported with a final report highlighting the key differentiators from travel suppliers. The entire process is transparent and can be verified for auditing purposes.
Stage 5, focuses on the negotiation of contract terms and conditions, designing a service level agreement containing key performance indicators, and helping with final implementation.
In Summary
The above is a simplified version of a business travel tender project plan. It can be undertaken in a few short months. Using this structure will ensure that travel tender projects are delivered on time and within budget.
If you're thinking about tendering your travel account, we can help you by either undertaking the entire project for you or coaching you through the process.
If you would like to discuss how the process works in greater detail then why not get in contact with us. You'll find our contact details at the bottom of the page.
Alternatively, if you're only thinking about a business travel tender and it's still some way off, why not subscribe to receive our free report "Planning a Successful Business Travel Agreement".
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