Getting With the Program - Carlson Wagonlit Travel

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48 Smart Solution: Program ComplianceGetting full support on a local level was also challenging because of our corporateculture. Henkel grew from many acquisitions, which have sometimes led to differentinterpretations of corporate guidelines. When we wanted to replace local travelmanagement companies with one provider (CWT), people started to argue. It is verydifficult to make the organization understand that having local providers may providesome advantages but, for the most part, handicaps overall efficiency and limits savingsopportunities. Our global procurement network is very supportive but in the widercorporate culture, we still have a lot of national hurdles to overcome.CWT Vision: What about the keys to success?Birgit Schenscher: Transparency, transparency! A strong analysis of cost drivers andbooking behavior is the baseline for everything. You need to break this down intosimple, trackable measurements and show people the opportunities. This has beenvery important for convincing the countries.You also need to report on results and show progress, like the fact that just one monthafter communicating travel policy, we achieved lower fares. In addition to average ticketprice, which is very convincing, we track online booking compliance rates and severalother key performance indicators monthly. This confirms we have made the rightchanges and enables us to fine-tune if necessary.In addition, dialogue with local experts in each country, both from Henkel and fromCWT, has played a key role. You need well-trained people in each country, as well aspurchasers with the right arguments, to challenge the local markets. You also need aglobal travel management company that is ready to align itself with local conditions—the travel market is global but there are still local differences.CWT Vision: What are your next priorities?Birgit Schenscher: We are pushing advance booking again via “one-year-later”communications. We’re thanking the entire Henkel travel community for helping usachieve our targets and we’re reminding them that we can still improve.Our second priority is to further improve the hotel program. Prices are increasingtremendously, so this is an important challenge. We are intending to push onlinebooking for hotels, as we have done with air, using the visual guilt factor. We also wantto improve the way hotels are displayed on the online booking tool so that we steerpeople toward our preferred properties.In addition, we will be keeping an eye on our performance compared to peers. CWThas created an index of average fares paid by clients on our main city pairs and this hasbeen a useful benchmark. In 2006, our average ticket price in countries such asGermany or France was higher than the index, so it was clear we needed to make somechanges. Now it is slightly lower than the average.Finally, we will be aiming to keep one step ahead of market developments. Again, wehave to recognize that even if all markets are alike in the main trends, local carriers andconditions can be very different. CWT provides us with the diagnostics and we usethem to target specific action.
CWTvIsIon Issue 3 - January 20084Communicating country-based facts to convince employees that the policybrings savingsThe following chart was sent to employees in Germany in September 2007, aspart of a locally adapted global email campaign one year after the new travelpolicy was introduced. The email thanked employees for their efforts over thepast year, explained how advance booking brings savings and urged employeesto continue consistently applying the travel guidelines.Average ticket price for Henkel Germany480€ 473€-50%294€276€232€-39%179€354€239€-3days-3/8days-9/15days-16/+days-3days-3/8days-9/15days-16/+daysDomestic flightsEuropean flightsSource: Henkel 2007 - Based on January-June 2007 dataHenkel at a glanceWorld-leading brands and technologies in three mainsectors: laundry and home care; cosmetics/toiletries; andconsumer and craftsmen adhesivesChairman: Prof. Dr. Ulrich LehnerApproximately 2,000 employees in 25 countries, with corporateheadquarters in Düsseldorf, Germany2006 sales: €12.74 billion (US$18.67 billion)2006 operating profit: €1.298 million (US$1.902 million)Global travel spend: €66.8 million (US$97.89 million)Travel management structure:One leader steering a travel team consisting of six regional travel teammembers for Western Europe, Eastern Europe, North America, SouthAmerica, Asia Pacific and Middle East/North AfricaOne main travel management company, CWT, since 2002
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Page 44 and 45: 42 Ten Business Travel trends for 2
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Page 52 and 53: 0Ground Transportation: Worth Anoth
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Page 56 and 57: 4In BriefIn Brief54 Snapshot56 Soun
Page 58 and 59: 6In BriefSOUNDBITE“Air travelers
Page 60 and 61: 8In BriefNumerous airlinesunveiled
Page 62: 60 In BriefINDICATORSEvolution of a

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