[Anonymous]

[Tom Otley]

In our new series, we put questions to the travel manager. This month,

Why can I buy the flight cheaper than you?

Can you? Well, taking a step back, that’s going to happen every so often. Whether it’s because of the way fares are made available and the way they are distributed through the Global Distribution Systems or suppliers, there’s always the possibility of a timing issue and accordingly a difference in price.

I’d say it doesn’t happen very often, obviously, and I’d also say that what you never hear about is the other 99 times when I can get a cheaper price than you can. It might seem to be a lot more often than that, but are we comparing apples and pears? I’ve found that when travellers start searching for flights themselves, trying to prove they can get a better price, the booking window seems to widen, and the traveller’s flexibility increases. So whereas they tell the travel manager or agent they want to travel at this time and only from this airport to another airport, when they go online and look themselves, the timings become more flexible and so does the routing. So they say they wanted to leave at 0900, not 0730, but when they do the search suddenly other possibilities present themselves and the price goes down. That’s not a fair comparison (or even a fare comparison). If you gave your agent the chance to search like that, they could drive down prices.

Bear in mind also that while it might be is true that when you book your travel through your travel manager, you may end up holding a ticket in your hand which has what seems to be a high ticket price upon it, the price hides a lot. What restrictions are attached to the ticket, for instance. If you cancel or try and alter the ticket, will it be expensive to do so, or even impossible forcing you to buy a new ticket? Restricted tickets work for leisure travel because you know when you want to go on holiday, but for business they are less useful, since meetings are rearranged and cancelled at very short notice. Obviously the more notice you have about a meeting, the earlier travel can be booked, and this can help keep prices down, but even then, it makes sense to buy a ticket with some level of flexibility, and that increases the price. Paradoxically, buying the least expensive ticket can end up being the most expensive option.

Since some changes are inevitable, for that reason in many cases the tickets I buy will not have those restrictions, or will have fewer of them. If they do have them, then with the relationships I have built up with suppliers or through our travel management company the relationships I can leverage, mean these costs are reduced.

In addition, the price for one ticket needs to be balanced against the price of many individual tickets. I need to make sure that the discounts we have negotiated which are as a result of us committing to certain volumes with certain suppliers are maintained. In other words, if I have said to an airline I will book a certain amount of travel through them, and as a result have negotiated a discount, if you then book outside the programme, that will affect the discount we achieve the following year. Your low price may come at the expensive of overall higher prices for the whole company.

This is always a tough one for travellers to swallow, not least because they say, “Wait a minute, it’s my budget”. And that’s where we have to say we have to take the full cost into account, and the overall saving might be tens of thousands.

Bear in mind that my job is to manage the travel of those employees whose work involves travel. There are a number of different elements to this, and saving money for the company is only one of them – though an important part. Other considerations include the safety the employee, ensuring that there is visibility in the prices paid for travel, and that all travel costs can be accounted for and justified. Cost is a component of the overall picture, but it’s also about controls. You can’t go out and buy a computer for the company or your health and benefits. The company sets up certain things and has the leverage to do that and that’s one of the rules of working for a company.

I’d also say “How much time did you spend to save that £50. If you are making £50,000 per year and your hourly rate is billed out at £150 then was that a good use of your time?”

It’s an argument that will never go away – and as long as most people are competitive – which most business travellers are – then this question will always be there.

In the end, though, it’s not a bad thing. It does keep everyone honest, including the suppliers If at the end of the day the travel manager needs to go back to the preferred airline and say you’re not competitive anymore, then that’s one result. Alternatively if the traveller only beat me one time out of 100, then the message is – stop trying to beat the system.

[frustratedflyer]

I can remember when a couple of years ago whilst working for a FTSE 250 company I had to travel from the UK to a couple of destinations in Asia before going to the US. I remember the TMC implant booking me on five different airlines in a mixture of economy and premium economy at an eye-watering price that could have flown me first to Australia and still left change for another long haul flight! I tried hard to explain the concept of a round the world ticket but was told it was not possible due to different carriers and the fact I was not travelling for long enough. I knew this was wrong so did some legwork to find a RTW Business Ticket (with one side trip on a different carrier) at under half the price (saving thousands). I then had the struggle to persuade people I could save the money because the ticket I wanted was in business and out of policy without approval!!!

I sort of agree with what the buyer says (for point to point travel) but many frequent travellers have greater knowledge of alliances, ticketing and options etc than the consultants that serve them. That’s where the frustration steps in.

[seasonedtraveller]

Excellent information which made for interesting reading.

[RocketBoy]

All of the above is true, and I should not spend so much time researching flights – my time could be better spent – but when making high value purchases like this it is only natural to research them, and unfortunately, that research undermines a lot of the claims made by travel managers (though I’m sure you are a lot more professional.

It’s rather like going to the doctors with some ailment, having done some research on the internet. Of course you are not challenging the knowledge and authority of the doctor with what you have learned, but nor are you coming from a position of complete ignorance as they seem to assume.

What’s more – and leaving that analogy behind – we are the ones who are expert at travelling, not the travel managers, who most often are stuck behind a desk, don;’ know none business class from another, and buy on price and schedule, not on the quality of the service, or even its reliability.

In such circumstances I’m sure I am a lot more creative when researching my own flights compared to the requirement I gave to the travel department, but then, if I gave them true flexibility, goodness knows who or what I would end up flying with….

[MarthaGeorge1]

But the traditional policy of mandating certain flights, fares & hotels, simply according to price, don’t always take total trip costs into account.

I recently went on a business trip to LA. The early morning departure meant a choice of expensive cab to Heathrow or overnighting at an airport hotel, as check-in was too early to take public transport.

Then at the other end, my hotel was 10 miles from the venue where I had three days of long meetings & dinners. Of course, anyone who knows LA, knows the only way to get about is in expensive cabs stuck in traffic jams… (or cheaper Uber cabs, but that can be a duty of care conundrum for some firms)

So, if I had researched and booked it myself, I might’ve been happier, more productive and still saved the company money (and I’d have to find something else to moan about!) .

I’d be interested to hear the travel manager’s response to this – us frequent travellers do know what we’re talking about sometimes!

[MrMichael]

I could happily wring my travel managers neck right now. I am stuck in the Mecure in Swansea, miles from town so no chance of a stroll and a pint, or a visit to the casino or theatre, I am stuck in an exceptionally quiet three star hotel on a trading estate a £10 cab ride away from civilisation. On Monday she will wish she had never heard of Swansea.

[PeterCoultas]

frustratedflyer – 100% correct: entirely my experience!

MrMichael – where is there an airport near Swansea!!!!

[NameRemoved-18/12/14]

Is the weather mild MrMichael?

[MrMichael]

No airport, I got here on a very comfortable First Great Western, where I could not fail to see as dusk descended the couple canoodling in the seats in front of me in the window reflection. As there was no IFE it had to do for entertainment. They boarded at Cardiff and alighted along with me at Swansea.

Regarding if it is mild my good friend Alexpo, I just popped out for a smoko between my pasta and my cheese and crackers (tucking in now as I write) and it is mild but drizzly. The weather that is, the cheddar is mature and the Stilton not bad at all, with a quite interesting and tasty sultana and walnut relish. I will still be having words on Monday mind you!

I must say my Mercure cheese and crackers is going down rather well with a Stella Artois Cidre.

[NameRemoved-18/12/14]

I was going to suggest an evening dip at Swansea Beach MrMichael, but maybe not after a bowl of pasta. And anyhow you would freeze your balls off LOL

[MrMichael]

It has a beach?

[NameRemoved-18/12/14]

Maybe better off in the comfort of your hotel meeting lots of random types MrM.

I will let the Welsh posters confirm whether there is a beach at Swansea.

Enjoy Mr M!!

[TominScotland]

Ah, camping on the Mumbles – some of the best beaches in Wales (and massive dunes for the canoodling, if I remember all those years ago…..)

[MrMichael]

After a good nights sleep at this boring hotel I am up at an ungodly hour and thought I would check through my papers for my meeting later today. While doing so I was intrigued to find that my reserved seat on the train out of here leaves precisely 32 minutes before my meeting is scheduled to finish. I thought I must be reading it wrong, surely that would not happen so I did myself another coffee, and yes, it is indeed the case. So not only will I wring my travel co-ordinaters neck on Monday, I will then have to bring her back to life and do it all again.

Yes, I have heard The Gowers beaches are quite something, but due to my rather tight schedule (how polite was that!) I will not be able to avail myself.

I wonder…..does my earlier post count as a trip report?

[Author]

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