February 03, 2004 07:05 AM US Eastern Timezone

MacNair Travel Saves Corporate Clients Nearly $7 Million in 2003; Study Reveals MacNair's Air Ticket Prices Beat National Average

ALEXANDRIA, Va.--(BUSINESS WIRE)--Feb. 3, 2004--MacNair Travel Management/American Express announced today that it saved its clients nearly $7 million in airline ticketing costs as compared to the national average in 2003. This savings was calculated by using a recent study released by independent travel audit firm Topaz International.

Michael MacNair, president and CEO of MacNair Travel Management, said that the average airline ticket price secured for more than 260 local area businesses in 2003 was $364.31 per ticket lower than the national averages reported by Topaz International.

MacNair's average domestic ticket was $436.11 versus the national average of $504.36 and its average international ticket was $1,432.80 versus the national average of $2,550.77, according to MacNair. Combining domestic and international, MacNair's average ticket cost was $535.41 versus the national average of $899.72.

"If our customers paid the national average price, they would have spent almost $7 million more in airline ticket costs," MacNair said. "MacNair Travel continually benchmarks its performance against such data to ensure an improved value for its customers."

Topaz International audits 500,000,000 brick-and-mortar and on-line agency fares secured from organizations nationwide to determine national averages. Details of its benchmarking program can be obtained from Topaz's Web site at www.etopaz.com.

Consistently beating the national average results from three key items MacNair's travel team employs, according to MacNair.

-- MacNair Travel's staff is trained to offer a wide range of fares to its customers - including Web fares and pricing on low cost carriers.

-- MacNair Travel's travel consultants invest time with its customers to develop enforceable travel management policies and procedures that encourage travelers to consider the most cost effective alternatives.

-- MacNair Travel negotiates effective supplier discounts for its customers and delivers special offerings to clients via its relationship with American Express Travel.

"While some of our results are based on the itineraries requested by our customers, our implementation of these three key travel management components clearly made a significant impact," MacNair said. "Travel is the second largest controllable cost for the average U.S. company and many organizations are not paying enough attention to this line item. As one can see, the opportunities are significant."

COST SAVING TRAVEL TIPS:

MacNair Travel Management offers up the following tips to travel managers who want to secure significant cost savings results. These tips are part of a complimentary educational seminar (offered in both Northern Virginia and Washington, DC) titled The Travel Management Workshop(TM). Check MacNair's Web site for upcoming seminars at www.macnairtravel.com/news_and_tools.

Benchmark Your Results. Understanding how your organization's travel management results compare to national averages can uncover useful data that you can use to deliver a significant savings. As many organizations are just now receiving consolidated 2003 data from their credit card company or travel vendor, now is the time to take on such a project. While there are many items to benchmark, and an evaluation of all travel related costs is a worthy cause, the best place to start is airfare. About 56 percent of an average trip cost is airfare, 18 percent is hotel, 13 percent is ground transportation (car rental or taxis), 10 percent is food, and 3 percent or less is the travel vendor fee. MacNair has begun publishing the following matrix for its clients and will use it to evolve its travel management systems.

                         THE MATRIX RELOADED!

----------------------------------------------------------------------

Fare Type          Topaz      MacNair's 2003        Savings per

                International  Results - DC     Transaction/Total 2003

                  Data 2003    Area Companies         at MacNair

-------------- -------------- ---------------- -----------------------

Domestic       $504.36        $436.11          $68.25/$2,364,111.70

-------------- -------------- ---------------- -----------------------

International  $2550.77       $1432.80         $1117.97/$4,288,532.90

-------------- -------------- ---------------- -----------------------

Combined       $899.72        $535.41          $364.31 /$6,652,643

----------------------------------------------------------------------

Develop an Automatic Travel Management System. The next step in this cost reduction process is to utilize this data to create effective travel management systems and procedures that reduce costs automatically. MacNair Travel suggests six steps:

1. Develop an enforceable travel policy with savings thresholds (for

   alternate airport, connections, low cost airlines, and other

   considerations).

2. Select a reservation system that offers web, low cost carriers, and

   published fares using on-line and full service options.

3. Ask your travel vendor to enforce your policy using the clear-cut

   guidelines.

4. Request a reporting system that shows fares selected by travelers

   and the lowest fare offered (push this data to department managers

   for review with your staff).

5. Create a single credit card billing system and request an automatic

   reconciliation option.

6. Measure results in order to evolve all the above.

Pick the Right Partner. Make sure the travel system you utilize is unbiased. Sites such as Travelocity, Expedia, and Orbitz do not offer a full range of low cost carriers, for example. Some agencies do not offer Web fares or they push certain airlines that still pay the agency commission. Ask what fares and airlines are offered and which ones are not. Many agencies offer on-line reservations for those who enjoy this communication tool at a reduced fee. Consider all the tools offered, the value record delivered, and the service behind the systems - for the fee paid.

Consider Productivity and Liability. Employee productivity should be considered in making arrangements, changing arrangements, executing the travel itself, and processing each expense report. MacNair Travel suggests considering the inconvenience of travel when setting enforceable thresholds and recommends setting up a single high quality, consolidated reservation and management system to handle every aspect of this line item. Lastly, remember that travel is a liability. Knowing where all employees are at any time in the case of weather challenges, terrorism, or a myriad of other travel obstacles, is an important consideration. It is also important to ensure the proper insurance package is in place to cover all travelers on the road.

These factors all need careful consideration when you seek out the right program and the right partner.

For more information on MacNair Travel Management/American Express, contact Jennifer Thomas at 301-261-9640 or visit www.macnairtravel.com.

Discover MacNair Travel/American Express:

Since 1989, MacNair Travel Management's- a privately owned American Express Travel Services Representative - mission is to help organizations develop a clear-cut travel management Flight Plan(TM) that delivers a cost savings, increased productivity, and many successful takeoffs and landings. They offer their services as a travel management company and as a travel consulting firm. MacNair Travel is an award-winning travel firm being recognized for its technology innovations, customer service, team excellence and expertise. Visit www.macnairtravel.com for more information.