Alcatel reaches higher travel costs savings with KDS

Alcatel turned to KDS for its Online Travel Management to Cut Business Travel Spend, Offer Better Traveler Service and Deliver Quick ROI

Track purchases in real-time and empower travellers

With 2004 sales of 12.3 billion euros, Alcatel has 30,000 business travellers and a 100 million euros global travel spend. Cutting business travel costs is part of a company-wide strategy to optimize non-production purchasing.

Before considering an online travel management solution, Alcatel had streamlined purchasing processes when entrusting travel management to a single travel management company (TMC), Carlson Wagonlit Travel.

"We had pushed optimization of our procurement processes to the limits." said one Corporate Travel Officer at Alcatel.

In 2004, Alcatel initiated a project to create a single access point for managing business travel. As well as the expected simplification coming from a centralized IT process, the objective was to enable Alcatel to access better rates and drive employee empowerment through greater independence in their choices.

Monitoring purchasing in real time was also essential to fine-tune travel expenditure control.

Phased-in deployment for maximum efficiency

After a Request for a Proposal, Alcatel chose the KDS Corporate solution in February 2005. "Besides their recognized expertise in business travel, KDS struck us as having the most relevant grasp of our issues," Alcatel commented. "We wanted to call in an independent company, recognized in its field, with longstanding experience. We consider KDS as the European benchmark in online travel booking.”

Alcatel also recognizes that it was attracted by the flexibility of the KDS Corporate solution and its extremely rich content. The fact that KDS offered direct access to a broad range of suppliers and services (low-costs, hotels, car rental, rail) was also a determining factor in the choice. KDS provides direct access to GDS as well as Alcatel’s own hotel program with 1,000 selected references in the 130 countries where the Alcatel Group operates.

Alcatel uses KDS Corporate visual guilt feature to maximize traveller’s selections of preferential rates and suppliers. The solution’s enhanced flexibility, lets users choose between rail or air transport whenever possible, comparing prices and journey times.

Following a change management phase KDS Corporate was renamed "Bookmytrip" by Alcatel and was deployed in two countries (France, Germany). By November 2005, Alcatel employees were booking their trips online. The close relationship between Alcatel, CWT & KDS rapidly led to a successful project.

One year ROI

KDS Corporate will enable Alcatel to monitor its travel spend daily. Reporting will give the purchasing department greater transparency in relations with suppliers.

"The KDS solution should allow us to reduce our TMC costs considerably and reach purchasing volumes, letting us centralize travel processing at the "E-fulfilment centre" of the Carlson Wagonlit Travel reservation center in Warsaw".

Return on investment should be achieved within one year through savings on travel management company transaction costs.

The huge choice offered by the online self-booking tool should also deliver unexpected savings for the Alcatel group. Alcatel noticed that, when given the choice, travellers tend naturally to choose the most economical journeys and adjust their times to select a cheaper journey. That is what travel management experts call visual guilt.

A high adoption rate

Alcatel employees were quick to take to the solution, attracted by its ergonomics, practicality and ease of use. They particularly appreciate the seat map feature, which lets them view their seat assignment in the aircraft and, for example, enables them to sit next to a colleague.

After just one month of use, KDS Corporate’s adoption rate in France is 54%, with 1,800 trained and active users. The proportion of touch less or first pass yield (without travel agent’s intervention) transactions is 92%. In Germany, the corresponding rate is 28% with 4,000 trained, active users. Touch less transactions account for 96%.

With the KDS Corporate solution, booking trips online now takes only few minutes. The solution will soon be made mandatory for simple trips, i.e. a return ticket by air, a hotel and car hire. Carlson Wagonlit Travel will be focusing its expertise on 'complex' trips and travel management consultancy.

In the long run, Alcatel wants to extend use of KDS Corporate to the main locations in the group, especially major European countries. The company expects an adoption rate of 65% over the next 18 months and wishes to implement the solution in Belgium, Italy, Spain and England.