Multinationals Favor Outsourcing

For many companies, travel expense management is a blind area of financial management.

No one knows the exact amount of payment for discount tickets. No one knows whether the hotel accommodation invoice is open.

In many companies, employees regard business as an unexpected income, and the boss also acquiesce in the existence of this quasi welfare system.

Outsourcing the travel expenses and management of employees to professional travel management companies has been favored by domestic enterprises.

Putian, CITIC and other Chinese enterprises have also accepted the concept of "travel management".

Rosen, Kang Hui and China Travel Service Travel Management Company are trying to push the concept of international business travel to the Chinese market.

Kodak's Jacky was most afraid of being a business trip before: "the only thing to consider now is the job. There is no need to worry about itinerary, just like a smart accompanying secretary who knows everything."

According to the latest data from the National Tourism Administration, China's annual international business travel expenditure is about 4 billion 200 million dollars, accounting for 17% of the Asian business travel market, and domestic business travel expenditure is about 20 billion dollars.

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To put it simply, travel management is to hand over all the travel expenses and management to the professional management company.

Enterprises make their own hotels, reimbursement, withdrawals and tickets will increase staff and increase management costs. Outsourcing is not only a matter of saving travel expenses, but also providing convenient and diversified travel services. It also allows enterprises to get rid of complex travel management and focus on core businesses.

Kodak's Jacky used to be most afraid of traveling, buying tickets, booking hotels and renting cars, and so on, which wasted a lot of time and effort.

Now he doesn't have to worry about these things again: "I bought it."

Even more pleased with Jacky is that when he likes to sit in front of the window, he gets a ticket by the window. He doesn't need to remind him on the way. The stewardess voluntarily sends him halal food, and the plane has not landed yet.

This is the service brought by travel management.

E long was the first local company to undertake travel and travel management business in China. The company, which was born in the Internet upsurge, is mainly business people, and now they are also entering the business travel management market.

In May 2002, Rosenbluth and Kang Hui travel agency of China jointly established "Rosen Kang Hui" to provide travel management services for Chinese companies.

Rosen Bruce international business Travel management Co has more than 110 years of experience in travel management. A series of original and leading travel management technologies make it the most professional travel management service company: the VISION system can easily provide customers with various reports; DACODA patented technology can help customers find out the complicated pricing method of air tickets and draw up a cost saving plan.

Rosenbluth is the only travel management company with a global tracking system.

American Express has also established a Ctrip express company with China National Tourism Corporation. It provides business travel, corporate card and group purchasing card services to 70% of the world's top 500 enterprises and thousands of medium-sized enterprises, ranking first in the global travel management market.

In China, it has established a joint venture with CITS, specializing in travel management.

If you go on a business trip to Malaysia, Rosen Bruce's global security system will tell you what happened recently, how much the safety factor is, and what level of insurance you need to buy.

After Saudi Arabia became the signing client of Rosen and Kang Hui, it did not immediately enjoy the service, but entered the two months' preparation period.

During this preparatory period, a lot of work will be done, such as "hope, smell, ask and cut".

The company puts forward the equal travel system and requirements for employees' travel treatment and the preferred airline or hotel list. Rosen Kang Hui's customer service manager will diagnose the existing travel system and travel schedule of Saudi oil, and use Rosen's GDS system to get the most comprehensive information about prices and routes, so as to optimize the combination and design the best plan.

If the company's original monthly air fare is 500 thousand yuan, after analysis, Rosen Kang Hui can come up with a scheme of only 300 thousand yuan.

Then, the customer manager will help the client negotiate with the airline to help you get the additional services you should enjoy, such as the right of priority.

When booking a hotel, the travel management company will also design the most economical solution for the enterprise.

Take a multinational company as an example. There are 20 hotels that may travel to Beijing every year.

After analyzing the customer service manager of the travel management company, it is found that it can concentrate on 5 of the most competitive businesses, and there are 100 rooms each year. The customer manager will negotiate with the hotel to get the best price and best service.

The internal management procedures should also be changed.

Every employee on a business trip should fill in the application form, including the Department, administrative level, treatment, personal interest, time and place of business trip.

After completing the application form, you need to check and sign your manager.

The company's internal approval process is completed and sent to the service terminal of Rosen Kang Hui via e-mail. The client manager confirms whether there are any missing procedures, which will enter the global service system.

As long as the ALLEN information is pferred out of the system, a personalized service customized for her will be generated.

Then there will be a dedicated customer service manager who is always concerned about the time, location and needs of the customers in their business trip.

After the monthly report comes out, the customer service manager must analyze the data, find out the loopholes in it, and put forward suggestions for modification, and constantly improve the customer's travel policy and system.

Rosen Kang Hui's unique global real-time tracking system and global security system provide a more perfect service for commercial travel: in dedicated web pages, each customer can find real-time information on global flights at any time through the global real-time tracking system.

For example, flight delays caused by Air France strikes will be released to all customers in a timely manner.

This system is playing a great role in "9 / 11" because only one company in the world can achieve real-time tracking, which greatly increases its reputation. If you want to go to Malaysia on business, just click on Malaysia. The global security system will tell you what happened recently, how much safety factor is, and what level of insurance you need to buy.

Unfortunately, domestic customers can not enjoy all of Rosenbluth's services as well as global customers.

For example, e-ticket, because China civil aviation system is not in line with international standards, Rosen and Kang Hui have no conditions to provide services.

Since China's civil aviation system is not in line with international standards, it can only serve as an example of electronic ticket service.

Unlike the agents, Rosen Kang Hui's income does not come from the difference between agents selling air tickets and hotels, but from customers.

"Rosen Kang Hui is not a travel agent, but a part of customer business management.

Our revenue does not come from the agency fee of a travel item, but from the recognition of our services provided by our customers. "

Mr. Wang Chang, director of marketing of Rosen and Kang Hui, told Global Entrepreneur.

The travel expenses paid by the client to Rosen Kang Hui include travel cost and service charge, and there are various ways of collecting service fees.

Plan 1: it is expected that the company will have a 10 million travel expenses this year, and by Rosen Kang Hui's service, it will only cost 9 million and save 10% of the cost. According to the agreement, Rosen and Kang Hui charge 1% or 2% of the actual cost, and finally save 9% of the travel expenses for the customers.

Option two: Rosen and Kang Hui promise to save 10% of the cost for customers. If the target is achieved, a service fee of 2% can be charged.

Plan three: it is expected that the year-end can save 10% for customers, the result is 20%, the 10% part of the commitment is not charged, and the other 10% 55 are divided into two parts.

In fact, the option of charging is not the only one. It all depends on the agreement between the two sides.

In the view of Tang Yue, chairman of the dragon company, this method of charging is not suitable for China's national conditions: "many Chinese customers are very difficult to accept the way of collecting service fees, and it is doubtful whether you have private agreements with airlines or hotels on price.

Our way is more intuitive, relying on scale to obtain Hotel and airline return services, and the service to customers is free.

Tang Yue said that at present, he can bring 8% of the hotel's individual customers, with a turnover of 2 million yuan per day.

"Only with a large customer base, will the hotel be willing to cooperate with you.

Domestic hotel information is not as pparent as foreign countries, and relations are too important.

All the group customers of e long can enjoy special services in addition to enjoying VIP membership automatically. Unlike Rosen Kang Hui, which provides rental services and other services, the company will decide on its free services according to the volume of customers' business.

The network covering more than 120 cities across the country is an important point for the dragon to attract domestic business travelers.

Even if a hotel that was signed by oil companies not long ago was in Karamay and Daqing, they could do the same.

This is what foreign Travel Company can not do in a short time.

Even by 2003, Rosen and Kang Hui had only 12 branches in the country.

Quite a number of companies acquiesce in the existence of loopholes in travel financial management. In some state-owned enterprises, bosses even regard travel expenses as part of employee benefits.

Outsourcing outsourcing can bring benefits to enterprises, but it has been resisted by many enterprises in China.

Most companies find it difficult to accept the concept of outsourcing, and employees even regard travel as a tool to increase revenue.

A Lenovo group manager said: Lenovo Group annual domestic air ticket expenditure amounted to about 19000000 yuan, emergency travel staff buy their own tickets, the face of 900 yuan tickets can actually be purchased at 600 yuan, but it is likely to be reimbursed by 900 yuan.

Although Lenovo asked employees to fill in the "real payment amount", how much they knew was only known to them.

When Rosen and Kang Hui interacted with China Airlines, they put forward management proposals for this situation. The response of the other side was astonishing: we allowed to exist because it could bring certain benefits to employees.

There are also some objective factors that restrict the implementation of outsourcing.

A well-known IT company in China has more than a dozen individuals engaged in internal travel management. Although they are interested in outsourcing, they are worried about their employment problems.

Although most of Rosen Kang Hui's clients are foreign companies, their business is still much better than expected. Now it seems that Rosen Kang Hui, who founded 5 months, will be able to earn money in 2003, and their initial expectation is 3 years. "When we moved into the office, we reserved 6 seats for our account manager, and now we have no vacant seats," Wang said.