Case Study: Leveraging Travel Data to Drive Return on Investment
In 2018, a prestigious, private R1 institution partnered with CTP to enhance its travel management program. The institution, renowned for its high research activity and comprehensive academic offerings, required a sophisticated, cost-effective solution to manage its extensive travel needs. By FY23, the institution’s total travel volume had reached over $10 million, encompassing airline, hotel, car rental, bus charters, and rail expenses.
FY23 Achievements
In FY23, CTP achieved significant cost savings and optimization for the institution, demonstrating the value of a strategic travel management partnership.
Total Cost Avoidance: $1,252,129.03
- Refunded Tickets: $612,284
- Unused Ticket Management: $458,377.46
- Airline Contract Savings: $133,532.35
- Hotel Contract Savings: $47,935.22
Additionally, CTP identified key cost avoidance areas and implemented initiatives to further enhance savings and efficiency for FY24.
Key Initiatives and Solutions
Initiative 1: Lowering Airline Exchange Costs
- Challenge: The institution’s exchange rate for airline tickets was 9.8%, significantly higher than the benchmark of under 5%. Frequent changes to airline reservations were driving up costs.
- Solution: CTP recommended encouraging travelers whose plans were subject to change to consider refundable tickets. This approach was supported by detailed data analytics and insights from CTP’s reporting tools.
- Outcome: This initiative added an additional $140,758.05 in cost avoidance for FY23. By shifting towards refundable tickets, the institution reduced unnecessary exchange fees and improved budget predictability.
Initiative 2: Increasing Online Adoption
- Challenge: Despite using an online booking tool for five years, the institution’s culture remained reliant on travel agent staff, resulting in a low online adoption rate of just 44.9%.
- Solution: CTP proposed targeted departmental arranger training sessions to encourage the use of the online booking tool. These sessions were designed to demonstrate the efficiency and benefits of the tool, addressing any hesitations or misunderstandings.
- Outcome: Although this initiative is ongoing, initial feedback and engagement levels suggest a positive shift towards increased online adoption, which is expected to reduce service fees and improve booking efficiency in FY24
The partnership between the institution and CTP Travel Services has proven to be highly beneficial, delivering significant cost savings, enhanced efficiency, and improved travel management practices. By addressing key challenges and implementing strategic solutions, CTP has helped the institution optimize its travel program and achieve its financial and operational goals.