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

2. Willamette University Budget overview
Annual Budget: $123,542,000
Research Funding: $2,800,000
Travel & Expense Budget: $2,638,000
< 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)

3. 2010-2011 WU vs. Comparison Benchmark Avg. against Peers
WU vs. Comparison Benchmark Avg. against Peers (Similar to WU spend)
Air (TMC)
Air (Online booking tool)
Air (Combined)
($)
($)
($)
Hotel
Car
($)
($)

4. “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

5. 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?

6. 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
New President
No Travel policy
Travelers are doing what they want
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

7. 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

8. 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

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

10. 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.

11. 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.

12. 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.

13. 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.

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

15. 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

16. 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

17. 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

18. 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%

19. “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.

20. 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

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

22. THE END
Thank You