Maine Perspective Front Page
Travel Management Plan to Cut Costs, Improve Service
Budget and Business Services is instituting a travel management plan for the University designed to contain costs for the institution and create better travel-related services for those traveling on UMaine business.
Beginning April 15, members of the University community traveling on business will book arrangements through one of four travel agencies now under contract with UMaine - the locally based Orono Travel and Hewins Travel, Ultramar Travel in North Carolina and Worldtek Travel in Connecticut. The four agencies were chosen from eight travel agencies that bid on the three-year UMaine travel contract.
With the exclusive travel contracts, the four agencies will compete to offer low airline fares, and rental car and hotel rates, as well as quality service. In particular, all UMaine business travelers will not only have service fees waived, they will also have a limited ability to cancel even a non-refundable ticket when an innocent error has created a mistake in date, price or destination.
Automated billing will expedite administrative paperwork and save the related costs. UMaine travelers will be able to send a signed and authorized travel form to one of the four contracted travel agencies, which then will charge the University's standing order account. This summer, that standing order account will be replaced by the University's MasterCard credit card system.
Any associated frequent-flyer miles revert to the traveler, not the institution.
"A lot of universities are trying to regain some control in today's crazy travel environment," says Bob Duringer, UMaine chief financial officer. "It's time to put the needs of our travelers and the University, rather than needs of a travel agency, first."
The new travel management system was established with the help of Campus Travel Management, based in Annapolis, Md. In the last two years, Campus Travel Management has helped establish similar programs at 20 campuses across the country, including the University of North Carolina, Iowa State, Missouri, Nevada and Miami. All the institutions have recently switched to travel management to manage travel costs after having no program or contracting with a single travel agency.
"Travel management is not about managing behavior but capturing data," says Larry Handel, president of Campus Travel Management. "We're not telling people how to travel or that they should use one airline or another, or book a connecting flight when a non-stop is better. Travel management is about creating a competitive environment with a limited number of travel agencies for the overall benefit of the University.
"At a time when everyone is looking for the best value, volume produces better deals. This is designed to support the University community and improve passenger service."
The University annually averages almost $3 million in business-related travel expenses, including airfare, car rentals, hotels and food. In addition, there are UMaine's administrative costs of processing related paperwork, including travel vouchers.
"The administrative burden associated with travel is huge," says Claire Pratt, director of Budget and Business Services. "Initially, members of the University community may not feel savings at the department levels, but the institution will realize savings in the processing associated with business travel. Eventually, savings will be felt at the ticket-level for all travelers on University-related business."
UMaine's system will evolve based on detailed monthly reservation and financial data that will give Budget and Business Services its first real sense of dollars spent by UMaine travelers, including their preferred destinations and carriers. Armed with such data, Duringer expects in six months to negotiate with airlines for reduced rates and better terms.
Within two years, the University could be saving 10 percent-15 percent on business-related ticket prices, resulting in direct cost-savings to departments, says Duringer, who previously implemented a similar travel management program. Another 25 percent-30 percent will be saved as a result of automated administrative processes related to travel.
"The biggest misconception is that people think they're going to be watched," says Handel. "The collection of data by all four of the travel agencies makes it possible for the University to negotiate better deals with airlines and hotels. The data helps establish a framework for supporting people's preferences in airlines and frequent destinations. We're watching patterns."
Those making business-related travel arrangements may find a low airfare through their own research, but should try and capture that same rate through one of the four contracted agencies, say Duringer and Pratt. An exception may be conference travel, where sponsors may already have secured the best rates or require specific hotel accommodations for the event. Travelers will be allowed to book conference packages that are organized by professional organizations.
Handel agrees that there may be a few times when it benefits the University for a professor or other traveler to use a non-contracted agency. One example would be a highly specialized excursion to a remote destination where a faculty member has long-established ties. However, for the more conventional destinations like Washington, D.C., Los Angeles, Boston, New York City or London, the contracted agencies will be competing to offer the best airfare rates, including conference rates.
This month, Budget and Business Services will offer open forums on campus to discuss the travel management plan, as well as a vendor fair featuring representatives from the four travel agencies. Watch the University's master calendar for listings.