“Making Travel Compulsory” Kindra Jordan Director of Travel Services Willamette University September 26, 2011

Willamette University Budget overview Annual Budget: $123,542,000 Research Funding: $2,800,000 Travel & Expense Budget: $2,638,000 <2010-2011 Air Travel> By University preferred methods: $629,000 (82%) By individual: $111,000 (18%) Travel Services: Two options- Travel center agents or Online booking tool Ghost card JP Morgan purchasing card (254 active card holder)

2010-2011 WU vs. Comparison Benchmark Avg. against Peers 2010-2011 WU vs. Comparison Benchmark Avg. against Peers (Similar to WU spend) Air (TMC) Air (Online booking tool) Air (Combined) ($) ($) ($) Hotel Car ($) ($)

“Making Travel Compulsory” Where we started What we did Looking at current model What challenges do you face with your program What are the VP’s and Deans views & response What challenges will we face in the future Before I started we had a one page Mandated travel policy. Use the TC or you did not get reimbursed. 10 % days and after paying operating costs money went to student organizations. Perfect until the commissions went away. Never changed the policy. We tried service fees with some luck. However, we found students used us to shop around as did staff and faculty. Went to the Controller and discussed options. Does it make sense to pay us (Univ. employee to do student travel with no results to show or to provide a means for faculty and staff to shop around for best airfare. I will say, we did have soft dollar programs with the airlines, discount hotel rates and Preferred car rentals. During that time we did around $500,000-$600,000 in air. Then partnered with State of Oregon, Web-site, on-line booking tool, consortium, then on our own. Increased airfare to no suTwo Ghost Cards - State airfares the other Orbitz for business Purchasing Card – Individual Travelers University liability 4

Question How many in the room currently have a travel program? Mandate? Travel guideline? Do you have any services that are mandated? Do they work? How do they compare to travel? Who endorsed?

Where we started 1995 Travel Center established Business funded and personal travel One page mandated Travel policy Endorsed by the President Reimbursement outside travel policy Commissions Paid for Travel center operating costs & Student fund 1998 New President No Travel policy Travelers are doing what they want 1999 Review travel program Formed a consortium 9 years ago with nw schools Was not successful. Formed partnership with State of Oregon Air,Car and hotel discounts in addition to our own programs. Soft dollar tickets Use of consolidators for lower priced tickets Web site Traveler on-line committee formed Selected on-line booking tool Encouraged feed back Ask travelers to send outside bookings to us to approve and send to accounting office Reimbursement after the trip takes place using their credit cards and boarding passes Study performed on our office. What we need to do decide who our customers are Performed a travel survey to find out what our travelers want Put together on-line booking tool task force Selected tool Offered all day sessions twice first year and 4th year. With our account managers

Where we started 2003 Eliminating commission No longer revenue stream for university Charge service fees Travelers went outside Travelers didn’t want to pay for services. Resource center for Business & Personal travel Eliminated Personal travel Reduce staff

Developed Model Based on what we learned we are able to change travelers behaviors President endorsed TC Established Travel policy (Guidelines) Travelers booking outside (Guidelines) Reward Departments Faculty resource funding – highly recommended Development office – told Athletics – required CLA – required Risk Management Sustainability council – report carbon footprint Based on current economy Reduced travel spending last 2 years Cost going up Increased endowment spending

“Making Travel Compulsory” Questions asked Senior management & Deans their opinions “Making Travel Compulsory” Their responses…

Vice President's Administrative Services Viewpoint It is an internal control mechanism for the prudent financial management of the university. It is an operational support mechanism that allows faculty and staff to spend more time on work or mission related activities (which they are paid for and experts in), and less time on booking travel (which they are not experts in). It is a risk mitigation opportunity to ensure that travel is handled in a safe, responsible and accountable way. It supports the image and comfort of the community in its work on prospective student travel, employment search travel, student trips, study abroad.

Associate Vice President/Controller There are risks involved in de-centralized ticket acquisition and centralized travel purchases mitigates those risks. Faculty and staff are not aware of all the purchasing options available to the public, and do not have time to learn all the options. As a result they may be wasting special time and still not making efficient choices It supports the image and comfort of the community in its work on prospective student travel, employment search travel and student trips, study abroad. Comment: Certainly there is a convenience to having someone on campus to help with these complex travel arrangements. Just the nature of these types of travel lend to the efficiencies that can be created by having someone very familiar with a variety of travel options.

Assistant to the Dean of the CLA It is an internal control mechanism for the prudent financial management of the university. It is an operational support mechanism that allows faculty and staff to spend more time on work or mission related activities (which they are paid for and experts in), and less time booking travel (which they are not experts in). It is a risk mitigation opportunity to ensure that travel is handled in a safe, responsible and accountable way. It supports the image and comfort of the community in its work on prospective student travel, employment search travel, faculty conference travel, and student trips, study abroad. Comment: Easier for people like me who track faculty spending to be able to check with the Travel Center if we have questions about travel instead of having to check with the traveler. Mitigate risk.

Associate Dean of CLA It is an internal control mechanism for the prudent financial management of the university. It is an operational support mechanism that allows faculty and staff to spend more time on work or mission related activities (which they are paid for and experts in), and less time booking travel (which they are not experts in). It is a risk mitigation STRATEGY to ensure that travel is handled in a safe, responsible and accountable way. It supports the image and the community and financial accountability in its work on student travel, employment search travel and student trips, study abroad.

The responses Guidelines (2) Mandate (1) Somewhere in the middle (1)

Everyday Travel Program Internal Control and Financial management Outside 18% of travel spend Using multiple sources Lost savings Is it worth time and effort Inside 82% of travel spend following reasonable guidelines Value to pick up 18% Benchmarking Avg. air, car and hotel rates Here discuss bullet number #1 Prudent financial management and internal controls. Outsource- doing their own thing Travel Guidelines who is using us now. Does it make sense to move the percentage. Shift in values needs to occur. Maybe for frequent travelers as there may be worth potential savings. Easier to focus on and reduce risks to the University. 15

Risk Mitigation Opportunity Outside 18% unidentified How would you assess risk for the university? Is it greater than 18%? Cost to mitigate risk? Inside 82% of travelers are identified. 82% of the risk– tracked Move frequent & high risk travelers Shift in values. If something happens then travelers are currently asked to use preferred. Examples, New Zealand, Aimee Aikmoff, Iran Must use. High risk travel 16

Operational Support Spend more time on work & Less time searching for airfares Outside 18% Competition for them Not always true based on sampling of 10 cities. Not experts in travel Is it worth the cost to move $110,000.00 Inside 82% Average $100 per ticket saving (contract airfares) Experts in travel Time and resources Is it really worth the time and resources to go back over and recreate the trips to determine the savings? Is it possible. Remember they are booking outside of guidelines. Own travel agencies, airlines, .com sites. Yes, some claim they can track savings are they doing a side by side comparison. If so, what class of service are they using to measure the savings. Even our State contract we adjust to what the actual ticket price shows and not the one measured. We show true savings at time of making the reservation. 17

Supports image & Comfort for the community Prospective students, groups, guests, & employment travel Outside Opportunity to spend more Opportunity to use their airline of choice Select the lowest airfare Unable to supply parents & families with information Is it worth 18% Inside Help Department administrators Save money for HR & Dept. Use the lowest airfare Increase lost savings opportunities No service fee for groups Parents & Families are more comfortable Currently 82%

“18% Travelers Behaviors” Until a shift of values/mindset changes behavior or significant impact to their life they won’t change behaviors. We will continue to have travel guidelines.

The Future Enforce Travel guidelines Collect good data on carbon footprint – Air travel Report $ purchased for carbon offsets Report more accurate air miles flown to sustainability council Continue tracking outside spending & destination Challenges with increased technology New president as of July 1 The battle starts all over again we are probably low on the list

Questions What works for you? Do you have a similar model? What problems do you see?

THE END Thank You