Consumer Packaged Goods
Consulting Objectives
The client engaged TCG Consulting to evaluate and control its global airline spending more effectively. For the first time, the company is exploring consolidated sourcing of its travel program.
Idea/Strategy
TCG consultants first compiled multi-national air spending data and conducted a comprehensive assessment of its current air travel program. TCG used this data to source a combination of alliance and individual airline contracts to implement a new multi-national air travel program.
Tactics/Tools
- Consolidated airline and travel agency contracts, and travel data from more than 20 countries in four regions
- Conducted comprehensive program assessment that identified gaps in current program and potential incremental savings of between 5 and 10% of current air travel expenditures
- Developed global strategy based on carrier alliance, with complementary country by country individual airline coverage
- Analyzed potential impact on existing travel agency contracts
- Sourced air travel services in twelve countries in three regions
- Negotiated comprehensive set of net/net airline contracts
- Successfully implemented program in all countries
Results
Working in partnership with its client, TCG implemented strategies and programs that will yield a projected annual savings of 10% over previous air spending. In addition, we increased airline contract coverage by 35% and set the stage for additional travel related sourcing projects.
Client Profile
Scope of Services Global
Primary Business: Consumer Packaged Goods
Total Travel and Expense Budget: $40 million
Other Data: All previous airline negotiations had been performed by travel agencies