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Managing Cost and Risk, While Abroad: How to Create
a Sound, Effective International Travel Program
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By Mike Fogarty, October 2008

When corporate travel managers tackle a Request for Proposal (RFP), �Ground Transportation� is frequently the last item considered - not a surprising fact, given the relatively small percentage of travel spend typically attached to ground transport. That being so, the international component of a ground transport program can draw even less attention.

Yet there is a disjunction between the attention given to international ground transport and its importance: Not paying attention to what happens to a passenger when she steps off the plane at the other end of an international flight can have risky consequences, including the passenger not having the proper currency to pay for the ride, not being able to tell the driver where he or she would like to go due to language barriers, or � in the worst case � perhaps getting into the wrong car and finding him or herself the victim of a crime.

Bottom line: Creating a sound international ground transportation program is not just a matter of efficiency, cost-savings and a creative positive experience for travelers. It is also an exercise in prudent risk management.

Here are some tips that should make the travel manager rest easier, and feel more comfortable, when trying to select the right provider for international ground travel.

An International Ground Transport Checklist

If you think getting a safe, courteous ride for the right price is difficult in New York or London, imagine performing that feat in Beijing, New Delhi, Mexico City or Moscow, where unlicensed cabs often set standards of pricing, service and safety.

Many international chauffeur service providers offer alternatives to the �local experience� � but how many actually understand the markets they serve, set strict driver standards for local service, and provide value for money service options for a small or mid-size budget?
If you are planning an international itinerary that requires ground transport, here are some selection criteria to consider:

1.  Insist upon strict, verifiable quality � An international ground provider should carry out on-the-ground site inspections with the local partners they engage. They should also have a formal contract with international provider-partners, which specifies strict service standards, and requires background checks including checks for licenses and insurance.

2.  Evaluate experience and �staying power� in the local market � Nowadays, every business claims to be �international,� and ground transport providers are no different. To assure you of quality when planning an itinerary, a ground transport company should be able to provide a history of success in the market to be served, client references and other assurances as to the length of service in the market and the quality of the chauffeurs, the cars and the rides.

3.  Is the provider dependable and do they offer value for the money?

Here are some benchmarks for evaluating a provider�s value: 
1.  Insist on the ability to monitor service levels and spend patterns � Any reputable ground transport partner should be able to share with you their anticipated estimate of costs . . . and allow you to see how the charges typically accrue over time, from reservation, through ride, to billing.  Look for a provider willing to agree to key performance indicators that meet your requirements, and one that can deliver monthly management information reports so you can gauge the success of your program.   

2.  Choose a vendor that utilizes an automated booking process � Less time and resources spent booking rides, means less cost to you.

3.  Insist on quotes and payments in U.S. Dollars or require a clear explanation on exchange rates between local currency and U.S. Dollars � As a travel manager you have enough balancing and budgeting to do, without being an expert in currency conversions or fluctuations! 

4.  Leverage the combined spend of meetings/events and corporate travel during negotiations � No matter whom you choose as a provider, make sure you get the best price for the total package.

5.  Consider not just the �cost per ride,� but the overall cost of ride administration, and use just one, or a few, providers � By consolidating your spend with one or a few service providers, you will increase your leverage in negotiating both rate and service standards. And consolidated reporting will provide you actionable data you can use to reduce your spend - and reduce administrative costs.

Enhance Service � Reduce Risk
Beyond cost, service is key.

As suggested above, travel managers should inquire about a provider�s driver selection and training programs; request copies of contracts with affiliate or franchise service providers; obtain certificates of insurance; and conduct periodic reviews of service performance with the ground transport company�s managers.

In addition, in today�s fast-paced and increasingly interconnected international marketplace, it is impossible to overstate the importance of choosing a ground transportation provider who is thoroughly familiar with all the markets served � including an in-depth knowledge of local topography, traffic patterns, and best available routing.

Choosing a ground transportation provider wisely can make all the difference between success and failure in planning a complex corporate travel itinerary.

And it can be an important tool for effectively managing risk, as well as cost, on the ground in distant markets.

Good luck � and safe travels!


Mike Fogarty is the CEO of Tristar Worldwide Chauffeur Services, U.S. Based outside Boston, Tristar maintains teams of chauffeurs in New York, Boston, London, and Manchester, and operates through a network of highly trained and qualified affiliates in 51 countries worldwide. 

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Contact:

Michael Frenkel
President
M Frenkel Communications, Inc (MFC PR)
230 Park Avenue, Suite 1000
New York, NY 10169
(212) 808-6556
(212) 499-2671 (f)
www.mfcpr.com

 

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