1. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting April 1 – 4, 2012 Rebooting University Travel: A Fresh Approach to Conventional Travel Practices

2. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Outline of Presentation Background and Problems Vision and Goals Implementation plan and Results Question

3. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Background and Problems

4. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Background Public Institution of Higher Ed founded by Thomas Jefferson in 1819 FY 2011 University purchased approximately 22 million dollars worth of Travel related services o 8 million in Air o 1.5 million in rental car o 13 million in lodging

5. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The Problem 1)Lack of Fiscal Management -Economies of scale -Rogue spend -Local hotel discounts -Smart purchasing decisions? 2)Not using available Technology 3)Process was fractured and confusing -P-card -Local lodging reservation process -Information / commodity management 4)No University Guests & Visitor travel assistance -Booking a trip or hotel while visiting UVA? -Leveraging spend

6. Here they are: 6 Travelers Procurement HotelsAirlines Rental Car Online booking sites What are the travel rules? Travel MGMT Vendors 9 Accounts Payable

7. Department of Procurement Services University of Virginia 7 Guest & Visitors Visiting Professors Visiting Family Prospective Students Sports fans Website Travel agent or booking site

8. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Vision and Goals

9. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The Trigger for Change 1)Economic Downturn and new fiscal operating environment triggered change 2)Identified the Travel Commodity as an opportunity -3 rd largest commodity in spend (22 million)

10. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California The Vision Create a Travel Management Program that is: 1)Fiscally strategic and well managed -Travel MGMT supplier consolidation -Create hotel and air contracts 2) Technologically innovative -Customizable and auto-synching 3) Simplified 4) Guest & Visitor friendly

11. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Vision of Travel MGMT Online Travel Booking Engine Single Award Travel MGMT Vendor Post travel audit of vendor charges Accurate spend Reports Customized online booking tool P-card allowed for lodging Traveler monitoring and Risk MGMT

12. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Vision of Guest & Visitors Visiting Professors Visiting Family Prospective Students Sports fans Website With Travel Tools “One-stop-shop”

13. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Implementation & Results

14. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Planning Wow! Complicated, long, and large project o Travel affects literally every single department o Travel is very personal Step 1) Formed a large cross departmental team (future buy-in) Step 2) Committee determined that the three mini-projects / request for Proposals would need to be managed: - Travel MGMT RFP - Lodging Widget RFP - Local Lodging RFP Projects would be intertwined and require to be simultaneously worked on

15. Online Booking Tool Travel MGMT Vendor UVA Travel

16. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Travel MGMT RFP Identified as the largest and most ambitious project Created and sent out a Travel MGMT survey to peer Universities (benchmarked) Reviewed other Universities RFPs Asked internal Travelers what was most important Went through a very long RFP process – focus evolved into a technology solution supported with professional service Involved internal audit and P-card administrators And after 18 months of Travel MGMT work, the results…

17. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Travel MGMT Results Awarded to Travelectra Low transactional cost / no implementation cost Price match guarantee Completely customizable o Travel rules with hard or soft stops No first class tickets, premium car rentals Hotels no more than double the federal CONUS / OCONUS rates o Hierarchy / approver routing o Different rules for different departments o Automated (synchs with data sources) o …Which allows for the P-card to be used for lodging Travel Risk and information management

18. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Travel MGMT: Success Overview WhatOld wayTravelectra Average $$30 to $45$4.35 to $17.75 Online Booking solutionNoneCustomized solution Ability to negotiate with airlines Near impossibleYes P-card on Hotel spendNoYes Post travel AuditNot included100% audit of transactions Revenue streamNoneYes

19. Department of Procurement & Supplier Diversity Services University of Virginia 19

20. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Travel MGMT: Money WhatMoney Annual transactional savings$200,000 + Implementation cost$0 Airline Discount2% to 10% Domestic 10% to 25% International Resulting in 500K to 750K annual savings RevenueFrom Local lodging fees: 80K From G&V Tool: $5,000 to $10,000 From additional P-card rebate: 200K

21. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Travel MGMT: P-card / Audit P-card can now be used for all three pieces of travel: Air, hotel, and rental car How o Online booking tool has all of the University’s travel rules and policies built into it o P-card can only be used for lodging reservations booked through the Travelectra tool – which ensures policies are being followed o Travelectra P-card compliance process (included at no extra charge) Send P-card instructions to hotel at the time of reservation Post stay audit of bill Disputes errors until resolution Recommends vendor removal in system

22. G & V Lodging Widget Online Booking Tool Travel MGMT Vendor UVA Travel

23. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Lodging Widget RFP What is a Widget? Who are UVA’s Guests & Visitors?

24. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Lodging Widget RFP Destination Marketing Organizations (DMO) use o Don’t force your website visitors elsewhere Had the Webmaster as part of the RFP team Obtained 4 proposals o Vendor selected had most attractive revenue proposal

25. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Lodging Widget: Results Awarded to JackRabbit Systems Low implementation cost: $2,900 Pricing displayed matches or beats available pricing 95% of the time Free reservation booking tool for small hotels and inns First University in the country with a tool like this Revenue: UVA makes approximately $2 for every $100 in business booked through Widget More leverage in future pricing negotiations with local hotels

28. Local Lodging G & V Lodging Widget Online Booking Tool Travel MGMT Vendor UVA Travel

29. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Local Lodging UVA spends 1.5 to 2 million on local lodging annually Previous reservation process was costly and inefficient o 12 communications back and forth between UVA and vendor o Solution was RFP process would be long – negotiations and Agreements for 20 hotels P-card administrator and Audit was involved Surveyed the local hotels – all were interested in a simpler process

30. Department of Procurement & Supplier Diversity Services University of Virginia 30 Local Lodging RFP Call hotels for availability and rates Circle back around to best option Create PO and give vendor order confirmation Pay invoice PO adjustment Give rates and availability Soft confirmation / Hold Final confirmation communication Stay occurs Send invoice to AP UVA Department Local Lodging Vendor AP PO Increase needed? Ask Procurement – where is it in the process

31. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Local Lodging: Success Overview Competitive rates, attrition, and cancellation terms negotiated for next 10 years Vendor to vendor contractuals spelled out Success with negotiating local corporate reward points: $50,000 in room certificates annually University department approved “order confirmation document” Last room availability clause Large efficiency savings from transitioning to the P-card

32. Department of Procurement & Supplier Diversity Services University of Virginia 32

33. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Local Lodging: Success Overview Negotiated with Travelectra to: o Waive booking fees for local lodging o Charge the local hotels a 8% transaction fee o Travelectra keeps 4% / UVA gets the other 4% (about 80K annually)

34. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Implementation; On-going How do we get people to use Travelectra? o Expect price and ease of use to drive adoption up quickly o Grassroots – via the large RFP committees o P-card allowed for lodging only booked through Travelectra o Training and demos o Sell savings potential to MGMT at large departments o Risk MGMT advantage Goal is to get to 80% usage within 2 years. If not may consider using some sticks

35. IdentifyCooperativecontracts NationalHotelContracts Car Rental contracts Air Contracts Local Lodging G & V Lodging Widget Online Booking Tool Travel MGMT Vendor UVA Travel Future

36. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Finding the Contracts

37. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Cooperative contract Using UVA’s contracts… You will say Every time

38. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Using UVA contracts Use of Agreement by Third Parties It is the intent of this Agreement to allow for cooperative procurement. Accordingly, any public body, public or private health or educational institution, or any University related foundation may access this Agreement if authorized by Travelectra. Participation in this cooperative procurement is strictly voluntary. If authorized by Travelectra, this Agreement may be extended to the entities indicated above to purchase at fees in accordance with this Agreement. Travelectra will notify the University in writing of any such entities accessing this Agreement. No modification of this Agreement or execution of a separate agreement is required to participate. Travelectra will provide semi-annual usage reports for all entities accessing this Agreement. Participating entities will place their own orders directly with Travelectra and will fully and independently administer their use of this Agreement to include contractual disputes, invoicing and payments without direct administration from the University. The University will not be held liable for any costs or damages incurred by any other participating entity as a result of any authorization by Travelectra to extend this Agreement. It is understood and agreed that the University is not responsible for the acts or omissions of any entity, and will not be considered in default of this Agreement no matter the circumstances. Use of this Agreement does not preclude any participating entity from using other agreements or competitive processes as the need may be.

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40. Publically Accessible Contracts 40

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44. 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Questions? Kevin Crabtree – Senior Buyer University of Virginia Procurement & Supplier Diversity Services kc5yc@virginia.edu 434-924-4219