Companies Expect to Save More from Procurement Practices in '09

More companies believe they can save money on travel by implementing procurement techniques this year than in 2009, according to Business Travel News' 2009 Procurement Practices survey. The percentage of those expecting to save less than five percent through procurement practices dropped to 7 percent this year from 19 percent in 2008. Meanwhile, those expecting to save more than 16 percent increased from 19 percent to 26 percent.

Using procurement techniques, which can measure the return and impact of travel on revenue objectives, has been a go-to practice for organizations for the past few years. In fact, 55 percent of travel managers surveyed say they use procurement practices to meet revenue goals.

What are some popular procurement strategies? About 73 percent of travel managers cited managing demand for travel services, 65 percent said mandating the use of preferred suppliers, and 37 percent said enforcing restrictive pre-trip approval processes.

"We've found that travel managers are also seeking more sophisticated advice, tools and tactics to strategically cut costs while protecting the value of their travel program," said Frank Schnur, vice president, Global Advisory Services, American Express Business Travel. "Procurement practices, which now include compliance and demand management, are an effective complement to traditional savings efforts. The survey results underscore the continued success of these tactics at maximizing the return generated by travel investments."

What, if any, procurement practices are you enforcing at your organization? Do you factor in your travel as it relates to meetings and events?

If you're not part of the 55 percent making the most of procurement techniques when it comes to meetings travel, make sure to check out Cvent's Strategic Meetings Management solution to learn how our technology can help you better organize and manage your cost-cutting efforts.
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