Travel management : EADS Achieves € 5 million Cost Savings with KDS

Case study

EADS Achieves € 5 million Annual Cost Savings with KDS Corporate

October 19, 2015

When it looked for a way to reduce its travel expenses and to rationalise and unify its overall business travel processes EADS, the European Aeronautic Defence and Space Company, turned to KDS.

When it looked for a way to reduce its travel expenses and to rationalise and unify its overall business travel processes EADS, the European Aeronautic Defence and Space Company, turned to KDS.

BACKGROUND

EADS is a global leader in aerospace, defense and related services. In 2006, the Group generated revenues of €39.4 billion and employed 116,000. EADS is the parent company of
Airbus, the leading European aircraft manufacturer; Eurocopter, the world’s largest helicopter supplier; and EADS Astrium, the European leader in space programs. It is also the major partner in the Eurofighter consortium, develops the A400M military transport aircraft, and holds a stake in MBDA, the international leader in missile systems.

OBJECTIVES

As part of its enterprise-wide cost saving program EADS sought a travel management solution capable of taking into account its complex organizational structure and the varied of systems and processes of its operating units. Reliability and transparency were key priorities for its travel management department.

THE SOLUTION

“We wanted a tool that would be easy to implement, need minimal resources, yield a fast return on investment and would greatly simplify our day-to-day life,” says Michael Doerr, EADS’s Director of Travel Management. “With KDS Corporate we found a solution that satisfied all these requirements.” Through KDS Corporate, EADS users are now able to make travel reservations from their office PCs, as well as check and change travel itineraries from remote locations. Accessing the KDS solution via the EADS TRAVEL.net Portal, employees can book their flights, hotels and car rentals 24 hours a day, from anywhere in the world. On the administration side, the system’s primary benefit is greater enforcement of travel policy and improved ‘best buy’ booking behaviour by users.

The core technology behind the KDS Solution provides:

  • A global solution built for worldwide markets, supporting 11 languages and more than 170 currencies.
  • Multiple travel information sources (such as GDS, supplier sites and web based information) properly configured for comprehensive travel management.
  • Direct access to clients’ negotiated fares, hotel rates and airline schedules.
  • A smart and powerful fare quote engine.

Seamless integration within the EADS Global travel Portal

KDS Corporate offers EADS an end-to-end solution for business travel bookings that spans travel authorization, enforcement of corporate policies, efficient self-booking and comprehensive management information. By embedding KDS Corporate within EADS TRAVEL. net, EADS has achieved seamless integration with its wider travel and expense systems and thereby delivered enhanced travel policy compliance.

Travel Policy reinforced

Beyond the integration, the KDS solution allows EADS to achieve policy compliance goals in other ways. Rules governing suppliers can be set at the click of a mouse. For example, the travel team can immediately configure the system to display a preferred airline exclusively on specific routes and/or hide an airline on other routes. The online booking tool provides flexibility in offering both the application of country-specific policies in a single application and the harmonisation of processes across the business. The tool also makes users aware of missed savings and, in the event that users do not choose the preferred option, prompts them to explain why they are not selecting an in-policy option. EADS was able to reduce complexity and to improve its workflow throughout the company by integrating the booking and accounting processes. This, in turn, led to lower manpower requirements and further cost savings.

BENEFITS

80% adoption rate; average ticket costs down 15%; total travel spend down 30%.

In the three years since adopting KDS’s travel management solution, EADS has reported savings on average of 5 million euros per year. KDS Corporate has been widely adopted within EADS and now handles over two thirds of its business travel. Through improved travel booking decisions and reduced TMC costs, KDS Corporate has allowed EADS to reduce average booking costs by 15 percent and total travel spend by 30 percent. Commenting on the success achieved over the initial three years, Michael Doerr says: “Thanks to KDS Corporate we have made a lot of progress and are well on our way to achieving our goals. KDS has proved an extremely effective tool and we are now well equipped to deal with the rising business travel costs that are forecast for the coming years.” EADS is shortly to upgrade to KDS Corporate V6, the latest version of KDS’s market leading technology. EADS expects the system’s enhanced expense management feature to contribute to even greater user adoption and further cost savings of 10 percent.