Transformational change and significant travel savings
Transformational change of Capita plc’s business travel programme led to significant savings, counteracting its historical 15% year-on-year travel spend increase.
With 75,000 people at over 500 sites, Capita plc’s travel spend has grown with the group. By 2013, an average annual 15% increase in spend led to a renewed appetite for transformation of its business travel programme
The group began with a concentration on hotels, the biggest annual spend area at over £20m per year.
The company’s hotel policy was historically traveller led, with employees having their pick of hotels. To increase its duty of care to travellers and save around £1m per year, Capita plc needed a mandated negotiated preferred hotel programme, improved buying behaviour, compliance to a firmer policy and reduced ‘leakage’ of bookings being made directly with hotels.
Capita Travel and Events implemented a three-step solution which demonstrated some outstanding results.
The initial transformation project resulted in £4m savings in the first two years. This was based on impressive average room rate reductions of 15% in London and 20% elsewhere, and increasing online booking from 70% to 85%.
With a mature travel programme, savings through negotiations with air and rail suppliers are also being maximised for Capita plc.
Initiatives already having a £500k impact on savings are a mandate of a single airline on key routes, a standard class rail policy and the introduction of a season ticket approval process.
Over the coming years, there will be a significant focus on behavioural change initiatives that encourage smarter buying decisions to positively impact traveller welfare and spend.
“To increase its duty of care, and save around £1m per year Capita plc needed a mandated negotiated preferred hotel programme and improved buying behaviour.”
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