Overview ​

Our client, a company in the reinsurance and insurance sector, sought to reduce its global travel spend of $10 million in 2023. After an internal supplier review, they continued to face challenges such as poor cost control, lack of transparency, limited coverage in key regions, and suboptimal rate negotiations for hotels and airfares.​

Procurato was engaged to lead a thorough Request for Proposal (RFP) process aimed at selecting a single global Travel Management Company (TMC) that could streamline operations, improve service quality, and achieve significant cost savings through strategic rate negotiations.​


Objectives​

To achieve the company’s strategic goals, we set out to:​
• Engage a global TMC that could deliver superior pricing, service, and coverage across regions.​
• Streamline travel management under one provider to ensure consistent policy enforcement.​
• Cut travel expenses by negotiating competitive rates for airfares, hotels, and related services.​
• Address service gaps in key regions to enhance coverage and provide more travel options.​
• Strengthen policy compliance and improve transparency in travel spend through enhanced oversight.​

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Key Activities​

• Managed a detailed RFP process to assess five global TMC candidates based on service, pricing, and capabilities.​
• Evaluated suppliers using a scoring system, focusing on regional coverage, cost management, and service quality.​
• Negotiated rates for airfares, hotels, and fees, ensuring competitive pricing aligned with the company’s financial goals.​
• Developed financial models to calculate potential cost savings from the proposed TMC rates.​
• Created a phased global implementation plan to ensure a smooth transition with minimal disruption.​
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Benefits Achieved​

Working closely with the company’s Travel and Procurement stakeholders, we:​
• Secured a global TMC with enhanced service coverage across all regions, ensuring consistent high-quality travel management.​
• Achieved projected savings of 12% across all international regions.​
• Reduced TMC management fees and transaction costs by 51%, leading to more efficient travel spend management.​
• Negotiated a 12% reduction in airfare and hotel rates across all regions.​
• Improved service delivery for executive travel by assigning a dedicated team, providing personalized support and faster response times.​