United Kingdom

 

Save money on your ground transportation programme

Driving ground transportation savings is a top priority for travel managers this year.

 

Follow our top tips to find the solutions that offer the best combination of savings, convenience and safety for travellers:

 

Integrate high-speed rail into your travel programme

Potential savings impact: 4/5

• Identify the main routes rail may be an alternative to air – typically routes that are under 500 miles or that can be covered in under three hours.
• Negotiate discounts – calculate your company’s current volume of air traffic on these routes and leverage this with suppliers.
• Optimise the rail class policy – prices can be at least 40-60% lower in standard class than first.
• Update your travel policy to support a rail sourcing strategy – promote compliance through improved communication with travellers or mandates.

 

Optimise car rental

Potential savings impact: 4/5

• Gather more marketing information – a full RFP should be conducted every year to see if pricing and conditions are still competitive.
• Request full spend data from suppliers (with a breakdown of ancillary fees and other charges) – ancillary fees now represent 10-20% of total costs.
• Set up framework agreements – achieve 30% savings with preferred contracts signed at a country or group level (renegotiate annually).
• Define a supplier selection strategy – most companies work with several suppliers for geographical coverage, but others have one preferred supplier to maximise volume discounts.
• Negotiate beyond daily rates – most organisations spend 30-40% of their car rental budget on weekly or monthly rentals.
• Ask specialists for support – CWT can produce timely market information, identify savings opportunities and provide expert support for negotiations.

 

Consider other road transportation solutions

Potential savings impact: 3/5

• Negotiate a preferred contract with a taxi company – taxis are used by 93% of companies compared to 59% for chauffeured cars, and 12% for motorbike taxis.
• Consider using motorbike taxis – though more expensive than classic taxis, they can save valuable time. Typically used by VIPs or senior executives.
• Promote other road transportation options – on average, 86% of companies have a mileage reimbursement system, while car-sharing services are used by only 35%.

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