Drive travel policy

By Abigail Mobley, HRG Business Manager

A defence technology and security specialist wanted to introduce an economy Lowest Logical Fare policy to achieve cost savings.

Prior to the project the client’s cabin split was 4% in business/first, 12% in premium economy and 84% in economy.

The HRG team renegotiated their preferred air supplier programme and trained our operations staff on the new policy and the client’s objective.

We introduced six new reason codes with the client’s own description against each one – three for accepted savings and three for rejected which the team use to document each booking.

We followed their revised approval system including documenting each booking with the details of approving manager details. The end result is that after 12 months we have shifted the cabin usage to 3% in business, 3% in premium economy and 94% in economy.

The result is cost savings of £436,842 for the client, is a substantial achievement considering the annual spend of just over £4m.

The client is pleased and we anticipate further economy discounts for 2011/2012 after successful negotiations with the client’s preferred air suppliers.

NOTE: currency quoted in GB sterling