Research has shown that, in many organisations, Travel expenditure is one of the top 3 items in controllable expense. This means that, particularly at times of business activity downturn, travel expenses can be one of the first areas to be cut back.

This Insight provides food for thought for management as to how Travel expenditure may be monitored and controlled throughout the business cycle. We at Gapeseed consulting believe that the aim should be to provide value, rather than just cut cost. As an example, rather than move from Business Class on air tickets to Economy as a first step, shrewd negotiation can reduce the Business Class fares, through discounts taken at point of sale. However, the ‘Best Fare on the Day’ (such as. the lowest fare made available by an airline for the day of travel) approach may be beneficial. If that isn’t felt to be sufficient, then the move to Economy may be inevitable, still using ‘Best Fare on the Day’. However, do define what is meant by Economy! If looking at the total cost of travel (100%), the cost of the Travel Management Company (TMC) is around 5%, the internal process costs (authorisation, booking, payment and so on) around 3% - that leaves 92%, the cost of the air tickets, the room charges and so on. This is the area of maximum opportunity to save cost, whilst obtaining value.


The experienced and well trained travel consultants provide cost effective and "value for money" travel solutions by making use of their on line and offline technological tools, business insights and consulting experience in the business travel industry.

Gapeseed organizes group participations at international and national congresses, exhibitions and meetings (MICE) worldwide. The company implements all services involved in the delegate participation, from hotel accommodation and travel services to transportation, cultural program etc.

Additionally, Gapeseed has a very wide network of suppliers and partners on a worldwide scale which allows its experts to offer immediate solutions at any destination as well as achieve best possible rates through their negotiation practices.

Some of the key things to remember for controlling your travel cost

Travel Policy

Why have one?  It is vitally important that companies improve value from money spent on travel and a travel policy is the cornerstone on which good procurement can achieve that objective. It has been said that a well-documented, well-implemented, well-monitored policy can reduce travel costs by at least 10% and by up to 30%. Experience has shown that travel suppliers will tend to give their best deals to those companies who can demonstrate an ‘effective’ Travel Policy.

Who should write your travel policy?

Travel Policy should be written by the person who is responsible for the procurement of travel within the organisation or an experienced Corporate travel planner organization should be comsulted to draft one based on your organization culture and need.

It should be

  • Reasonable
  • Empowered
  • CSR
  • Seek Alternatives
  • Keep it simple

Making it happen is the toughest part. An organisation can have the best travel policy on paper but its usefulness is only as strong as the traveller’s awareness of it.

Supplier negotiation – skills required Generally, it is fair to say that the fewer suppliers the better and that well-developed buying functions spend little time on administration and clerical functions but more on negotiating long-term relationships, developing suppliers, concentrating on total acquisition cost reduction, adding value and developing partnerships – very much mutual v. transactional relationships.

Negotiation involves:

  • communication - written and verbal
  • Identifying, agreeing and pursuing objectives
  • having a good script and environment
  • assessing the other party’s position (information is power)
  • bargaining concessions for advantages
  • wanting to reach agreement
  • agreeing agenda and rules
  • making sure the correct people are negotiating
  • identifying issues and problem areas
  • trying to resolve easier differences first
  • bargaining firmly on serious differences, encouraging concessions
  • giving way on low priority items to gain high priority matters
  • Effective use of silence
  • suggesting ways of meeting your needs at low cost to the other party
  • looking for signals of readiness to concede
  • confirming agreements as they are reached

Summarising the results of the negotiation. In travel, the buyer needs to have the correct management information to back up their negotiation and preferably some benchmarking to set the parameters for the range which they negotiate. Management

Make sure your Corporate Travel Management company

  • pays careful attention to your travel management brief
  • are flexible in their recommendations; independent and supported by competitive rates both locally and globally
  • present a proposal in consultation with you and focus on achieving a positive return on investment
  • believes that they offer the market's leading Service Level Agreement through
  • partner with the best corporate travel technology companies with guaranteed research and ongoing investment
  • partner with Travel Risk Management experts to ensure compliance to the National Health & Safety legislation
  • regularly discuss and review working relationship with you via a pro-active and dedicated account manager
  • Evolve your travel program with your business and the market place to drive corporate travel savings.



The business travel market has evolved dramatically in the last 20 years and will continue to do so. The procurement specialists, who have appeared more and more to be deciding strategy, will need to keep abreast of these changes. There is more emphasis on end to end process solutions from travel booking services, expense claims and payments. The challenge is in implementing the most cost and time effective solution for your organisation.

Via Gapeseedconsulting