Why do I need Travel Audit from TravelSpends?
Travel and Entertainment (T&E) Expense is one of the largest controllable indirect expense of a company. An unbiased third party audit of this expense by an expert in the travel domain can provide substantial savings which will have a direct impact on your company’s overall cost performance.
How is this different from our standard internal and external audit?
Internal & External audit carried out by your company focuses on the overall accounting audit and provides a larger picture in terms of compliance and accounting standards.
However a specialized Travel Audit by TravelSpends will give you real time audit benchmarks of air fares, service level agreement tracking, financials charged on invoices, GDS, airline contract effectiveness and hotel & car contracts utilization. These can result in substantial T&E savings for your corporation.
What is the scope of this audit?
A TravelSpends, Travel Audit covers the following areas:
- Air Fare audit
- TMC contract audit
- GDS audit & BSP audit
- Hotel audit
- Car rental audit
- Travel bills audit
- Tax, rebates & savings
- Financial pay back audits
- Travel claims and settlements audit.
What geographies do you audit?
Currently we offer our services in India; however we can manage the process across the globe with our state of the art technology infrastructure and online auditing tools.
How do you price your audit?
We price our services in two parts...
Part 1 – Diagnostics Study: We charge a flat fee for the initial diagnostics study and the cost estimation is a function of man hours / resources deployed and the size of your T&E budget
Part 2 – Real Time Audit: Our charges are primarily computed on per audit basis or we charge cumulative annual charges depending on the volume of transactions and scope of services covered.
What will be the frequency of the audit?
An audit is a tool to check the effectiveness, efficiency and the robustness of your T&E program and related process. Our recommendation would be an annual subscription with a minimum of four audits spread across quarters for higher compliance and benchmarks. This will certify and validate that your stated objectives and achievements are matched.
How can this audit give us savings for historical transactions?
Travel Audit cannot go back in time to render recovery of ticket prices paid and travelled. However the diagnostic study will help us evaluate the past data to arrive at revised benchmarks which will help our corporate customers achieve substantial savings going forward.
Why do you say that the audit needs to be real time?
One cannot go back in time when it comes to air fare audit as airline seats & hotel rooms are one of the most perishable commodities that exist in the world today. Due to its nature of being perishable the air fares keep on changing very dynamically as is true for hotel room rates, hence to get the optimal T&E spend it is critical that travel audits are done real time, using state of the art technology tools.
Why do you need to audit air fare?
Air Fares are dynamic and airlines are trying to maximize their yield per seat using sophisticated revenue management models and tools. On the other hand the fare constructs are complex due to the components of base fare, taxes, transaction fees and other charges. Air Fare Audits done systematically can render significant savings to a corporation. Our teams will be happy to explain this in detail as aviation is our passion.
How long does it take to conduct the specialized travel audit?
The duration of the audit is the function of volume and also the agreed sample size of the transactions. Timelines will be discussed and mutually agreed between both the parties before the audit process gets started. A buy-in to this process from the key stakeholders including the top management and TMC will render the desired outcome within timelines.
Do you carry out this audit jointly with our Travel Management Company (TMC)?
We can do both i.e. we can manage the audit by collaborating with the TMC & we can also do a blind audit as the PNR’s will be placed in the designated queue and we can manage the same without any third party intervention. These decisions depend on the corporate’s internal processes and policies. We can recommend an approach based on our engagement discussions.
We have lowest logical fare mandate given to our TMC, Isn’t that enough?
There are a few pertinent questions that we pose to our corporate customers, every single time someone asks this.
What are the low fares that you achieve currently, being benchmarked against? Can you validate these benchmarks? “Anything that can be measured can be managed well”. We have a strong belief in this statement. A TMC’s core objective is to fulfill a transaction with the optimum resource in a very short time period. They are also operationally focused in terms of turnaround time for delivering employee satisfaction.
An Audit essentially gives you confidence and control over the corporate travel management program.
How will travel audit impact our current vendor relationships?
We believe in collaborating with all the stakeholders in the travel eco system. We will work closely with your internal travel management teams, TMC’s and other suppliers. Every company is exposed to audits and our process will also aspire to get cost and process efficiencies for our corporate customers. We will not recommend any changes unless we find it critical to achieve optimum savings.
Our TMC has state of the art tools to measure effectiveness of our travel program? What value will this audit add?
We are sure that your internal finance and other relevant teams are competent and they do achieve their business objectives efficiently. However you still conduct internal and external audits from a general accounting perspective. The rationale for travel audit runs on similar lines. An audit is to assess if any need gaps exist and if they do, to take corrective action in the best interests of your business goals.
We do regular reviews with our TMC, isn’t that enough?
TMC reviews are more focused on the operational process compliances like turnaround time, service level agreement adherences etc. However audit is a strategic process which gives corporate customers a report card on how the corporate travel program is executed and inputs for constant up gradation. Globally matured corporate travel markets have accepted Travel audit to achieve optimal T&E spends and we are confident that we will produce results in emerging markets of APAC region; which is one of the fastest growing corporate travel markets in the world.
How will this audit impact our T&E costs?
The Travel audit related cost should ideally be termed as an exercise linked to your internal and external audit process. We will complement the overall auditing process by working closely with the finance and audit teams. This will not have any impact on the T&E cost.
Globally, research has proven that overall ROI is hugely positive during the initial years and continues to remain significantly high over sustained periods. We will be happy to share the concepts and findings in advanced corporate travel markets.
How will this audit effect the delivery time of TMC (thereby affecting employee satisfaction) and the cost structure due to additional resource deployment?
Travel audit will not have any impact on the current delivery process neither this will require any additional resources from the TMC. All our process will be managed through technology and we will deliver the results without impacting the current operational process.
What is the experience of the TravelSpends team to carry out this audit?
TravelSpends leadership team has 40 years of collective experience in the travel domain. Our team has in-depth knowledge of aviation industry and the travel management in the areas of TMC backend operations, technology, strategy, customer service excellence, airline pricing, revenue management, network planning, sales and airport management. We will use our rich experience to support our corporate customers to achieve the optimal T&E expense. Ultimately “Your Savings is Our Business”.