Overview:
Mid-size travel buyer with $30 – 40 million in annual airline spend. The organization was in full cost reduction mode and was looking at travel to contribute a significant portion to the efforts.
Approach:
Recognizing that airline sourcing would not be enough to meet the targeted 25% reduction in spend, Data Insights implemented a top to bottom assessment of the program to uncover opportunities. Data Insights evaluated sourcing opportunities, cabin policy changes, advance purchase behavior, movement from refundable to non-refundable tickets, connecting flight options in non-stop markets and demand management.
Results:
Data Insights provided the client with fact-based, data-driven cost reduction opportunities by evaluating their own data. This provided realistic, actionable opportunities that were presented to senior leadership for consideration. The recommendations provided an opportunity to reduce cost by nearly 40% if implemented. Ultimately, the client implemented portions of the recommendations that were deemed to be traveler friendly (advance purchase, non-refundable tickets and demand management) in order to achieve the targeted 25% reduction in net spend.