Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace 1A: Freshen Up Your Mature Travel Program Stacey Clifton, Strategic Sourcing Manager| Harvard University Bradley Seitz, President | Topaz International Will Tate, Senior Vice President | Management Alternatives, Inc.

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Connecting Procurement and the Traveler Experience Will Tate Senior Vice President Management Alternatives 972-599-2833 willtate@manage-alt.com

Connections?

Locking in Freshness Rise of the employee Emphasis on Procurement Competition for Talent Duty of Care Emphasis on Procurement Savings Plans and Guarantees Job Performance (you look bad!) Marketplace Competition Better, Personalized Options are Everywhere Ubiquitous chances to break policy

Case Study Scope Survey Sticker

Case Study The Problem The Solution Improved Value in Key Hotel Markets Prior Sourcing Strategies Ineffective The Solution Gain the Voice of Customer for Key Hotel Markets Create Value Ratings

Scope: Survey: Sticker:

Key Supplier Meetings Period to Adjust Re-measured in 3 Months Preferred Status may change Gain Loyalty Removed from Program

Only Straggler Volume remains Results! “Top Employee Rated!” -4% Rate +8% Sat +12% Sat -3% Rate +190% Only Straggler Volume remains +122%

Case Study Summary The Problem The Solution The Benefits Improved Value in Key Hotel Markets Prior Sourcing Strategies Ineffective The Solution Gain the Voice of Customer for Key Hotel Markets Create Value Ratings The Benefits Removed underperforming properties Measurable Improvement with Key Partners Better traveler experience

There Is No Feedback Loop! Tired Sourcing Stale Sourcing Consolidate Spend Specify Quality Set Targets RFP Analyze & Negotiate Decide and Contract Implement & Track There Is No Feedback Loop! What’s Missing?

? Why don’t we… Why don’t we… Travel on buses rather than airplanes? Stay at hostels or shelters? Share hotel rooms? Set per diems at bare minimums? Conduct more meetings on phone?

! Quality Measures! Care for business Care for traveler Because… Productivity Competition for Talent Deemed too important Care for traveler Convenience Duty of Care Quality Measures!

Stale Sourcing Feedback Loop

Stale Feedback Loop Circle of Concern Reactive Circle of Influence

Nature of change demands a dip in understanding and productivity You will have a LONGER Walk through the ‘Valley of Despair’ – Without… Service Level Knowledge Nature of change demands a dip in understanding and productivity Launch Value Creation Betty Goal: make the ‘Valley of Despair’ as short and shallow as possible to regain and realize expected benefits from change Value Time

Fresh Baked Case Study

Fresh Baked Case Study The Problem The Solution Recent Airline Sourcing Criticized by Management “Too focused on savings” not traveler experience The Solution Gain the Voice of Customer on for New Airline Partnerships

92%!! 89%!! Fresh Baked Case Study Yay!! You are aware of the recent change in airline partnerships for our company. Please comment on this change: How has it impacted your travel experience? Made travel more difficult Made travel less difficult No change What is your experience with the new airline partners? Worse than the prior partners Better than the prior partners Yay!! 92%!! 89%!!

Case Study Summary The Problem The Solution The Benefits Recent Airline Sourcing Criticized by Management “Too focused on savings” not traveler experience The Solution Gain the Voice of Customer on for New Airline Partnerships The Benefits New Airline Partnerships Working Well! Anecdotal Opinions Lost Relevance Validation TO Travelers Validation OF Sourcing Effort

Reactive Old & Tired Sourcing Feedback Loop Circle of Concern Circle of Influence

Proactive Sparkling Sourcing Feedback Loop Circle of Influence Circle of Concern Proactive Circle of Influence

Why Should Buyer’s Care? Employee Care Improved Traveler Experiences Improves Duty of Care More Meaningful Preferred Relationships Show Why Preferred Suppliers Matter Incremental Savings is Diminishing Proposition Improvements can be Replicated Measures toward Progress Show Worth Differently Program Improvements Period over Period

Why Should Seller’s Care? Sell on Service Becomes Measurable Could offset Pricing Pressures Awards Improved Supplier of the Year! Supplier of the Year! More Meaningful Preferred Relationships Success means less portfolio turnover Reference for Other Customers

Staying Fresh Own the Traveler Experience Formalize the Satisfaction Survey Process Quantify Results Broaden to all Key Suppliers Partner for Improvements Recurring Reviews Decrease Non Performers / Increase Performers

Your Travelers…

Your Boss…

You!

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Freshening up a Mature Program Stacey Clifton Strategic Sourcing Manager Harvard University 617-495-9308 stacey_clifton@harvard.edu

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Roadmap Where we are – current state of our program Where we want to be – how do we get there?

Harvard Travel Program Overview Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Harvard Travel Program Overview Non mandated environment, estimated “compliance” of 66% with preferred travel agencies Decentralized institutional structure Travel Policy “Strongly Recommends” that travelers use preferred vendors

Harvard Travel Program Overview Six Travel Agencies (7 including Athletic Travel) Provide access to Harvard negotiated pricing with airlines, car rental, hotel and other preferred travel vendors Airline Partnerships Agreements with 8 Airlines providing Harvard travelers with discounts ranging from 1 to 69% off various fare classes 3 Car Rental Vendors Discounted rates which include insurance Hotels Local Chain wide Sedan Services

Harvard Travel Program Benefits Provide savings based on negotiated contract pricing with airlines and other suppliers versus generally available rates. Airline discounts range from 1-69% off applicable fares FY’11 air savings totaled $5.3M, estimated 30% off regularly published fares Exercise duty of care – all of our agencies send feeds to International SOS Assist travelers if necessary while on the road Reinforce compliance with Fly America Act for air fare purchased with federally sponsored funds Track and report C02 emissions to Office for Sustainability

What can we be doing better? Solicit feedback from Senior Leadership, Travelers and Travel Arrangers through: Focus Groups Surveys Executive Sponsor Meetings

Senior Leadership Perspective Where we want to be Senior Leadership Perspective Increased savings Improved compliance to policy and use of preferred vendors Better visibility into spend – by school, department, traveler behavior Better reporting -Duty of Care, CO2 emissions Traveler Perspective Better discounts/value Easier to use website and Expense Management Tools Improved service from our travel vendors Broader range of discounts Support Meeting and Events Planning needs VIP agents

Current Program Challenges Senior Leadership Perspective Potential Opportunities Current Program Challenges Current expense system provides minimal visibility into travel spend which limits our Ability to negotiate effectively Understanding of traveler behavior Ability to identify travel patterns Difficult to quantify key performance indicators for program Accurately measure level of engagement Savings realized and potential opportunities Out of policy spend/policy compliance Safety and Sustainability targets are not easily measured Traveler tracking (Duty of Care) Report on CO2 emissions Implement an Expense Management System Utilize additional data to identify further savings/value opportunities with both existing vendors and new vendors Use additional data to understand drivers for non-compliance Measure Key Performance Indicators and use the results to improve the program Improve efficiency in the reimbursement cycle Automated auditing Holistic view of travel expenses

Traveler Perspective Challenges Opportunities Travelers and Arrangers FAQs Who are our preferred travel vendors? Why should I use our preferred travel vendors? How do I (and Harvard) benefit by using these preferred vendors? Travelers and Arrangers Perceptions “The travel agencies don’t get me the lowest fare” “I can do it easier myself” “It’s my job to shop for the best fares” “I need VIP services” Current Expense System is not easy to use Communication Strategies Quarterly Dean’s Travel Board Meetings Community Outreach Collaboration with the different schools and departments “E-news” and Various Publications Travel Website Travel Fair Benchmark Pricing and Service Levels Third Party Fare Audits (Topaz) Traveler Surveys and Focus Groups Implement an Expense Management System Time savings in expense report preparation More accurate reports Faster reimbursement

Current Initiatives Develop New Website – easier to navigate, done in collaboration with schools and travelers Partner with Passport and Visa Services Providers Continue to partner with Harvard Affiliates to leverage their travel volume to receive deeper discounts Support Meeting and Events Planning needs through introduction of new internal and external providers

Travel Website A new travel website and portal was launched in March 2011 The new site includes links to school specific policies and was developed with input from a broad range of travelers and travel arrangers

Keeping it “Fresh” Continue to “check in” with travelers, arrangers, senior leadership Make sure we’re meeting their needs (survey’s, focus groups,audits) Share audit/survey results Evaluate and address feedback Explore opportunities for new discounts and service offerings – dining, airport parking

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Thank You!

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Measurement for Continuous Improvement Bradley Seitz President and CEO Topaz International 503.828.0993 Brad.Seitz@etopaz.com

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Today’s Keywords Audit Measurement Verification Benchmarking Validation Assessment

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Performance Measurement; The what, why and who

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Policy: How do you measure Policy Performance?

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Airfare: The Classic

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace TMC: What do you want?

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Hotel: More than just a rate?

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Car Rentals: Key are the extras

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Expense Reports: The final frontier

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Benchmarking: How do you compare?

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Benchmarking is the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders.

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace

Celebrating 26 years of service to the Collegiate Travel Marketplace Annual Conference & Tradeshow Celebrating 26 years of service to the Collegiate Travel Marketplace Thank you!