Travel Category Management Plan

Synopsis

Published March 2017

 Category Vision

The NSW Government travel category will be recognised as best practice within the Australian public sector and by the
Australasian Procurement and Construction Council, through the provision of cost effective travel options via an
efficient and cost effective travel booking and reconciliation process.

• One-stop shop travel service for all elements of NSW Government (NSWG) travel. Travellers and travel bookers can complete all
bookings via a digital platform, or offline via phone or email.
• A target of 80% of NSWG travel bookings to be completed online.
• Full compliance with NSWG travel policies.
Procurement
• All NSWG air travel, accommodation and car hire to be paid for using a single form of payment.
objective
• All NSWG air travel, accommodation and car hire to appear on a single statement, to allow for efficient reconciliation.
• Extend travel category to include conferences, meetings and events, taxis and charter flights.

• Leverage the purchasing power of NSWG which is the second biggest public sector travel program.
• Using technology innovation in the areas of booking, reconciling, reporting and communication.
Procurement • Develop regional and Small and Medium Enterprises (SMEs) through third party supplier arrangements.
Strategy • Effective engagement with industry and suppliers.

• The current Travel Management Services arrangement was completed via an open Request for Tender
• Domestic airlines to be sourced via direct negotiations.
Sourcing and • The sourcing activity for Short Term Motor Vehicle hire was completed by Queensland Government. NSWP participated in the
Management renewal process having requested NSWG specific requirements under the arrangement and as part of the evaluation team.
Strategy

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Travel Category Governance

A robust governance structure has been established to manage the travel category on many authority levels

NSWP Owner Responsibility

• Set the strategic directions of NSWG
procurement
Cluster
DFSI Secretary NSW Procurement Board Secretary • Comprises of Secretaries from the
clusters

• Advises the Procurement Board

Chief Procurement Leadership Chief • Maintains consistency in procurement
Procurement Procurement across NSWG
Officer Group Officer • Provides leadership in procurement

• Strategic management of NSWG

Director Travel Category travel category expenditure
Cluster Travel
Category Communicate matters of interest to
Management Management Working Group Manager •
the travel category team

• Tactical and operational management

Travel Category of the travel category
Manager
Travel Category Team Travel Managers
• Management of travel category
contracts

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Current Arrangements

Travel Management Services Contract 1008 (C1008)

• Sole supplier FCM Travel Solutions.
• Contract commenced 1 March 2016 and expires 29 February 2019 (3 years term, 2 x 12 month extension options)
• Transparent transaction fee model
• User friendly online booking tool, Serko, supports increasing online adoption and reducing transaction fees

In-scope Services

Air Travel
Preferred carriers are Qantas,
Virgin and Regional Express
Lowest logical fare policy
Qantas contract 2017 expires 1
June 2018 (2+1+1)
Rex contract rolling
Virgin contract expires 1 Feb
2019
Various International contracts
in place
Accommodation Car Rental Virtual Travel Card
Preferred providers are Avis,
Payment Facility
Hotel bookings made via the Budget and Hertz (VTC) Contract 1009
TMC
Overarching contract held with American Express (Amex)
Removal of Per Diems Queensland Government
initiative Business Travel Account
expiring 30 Jun 2017
FCM provides multiple C1009 expires 29 February
Rate card by vehicle type 2019 (3+1+1)
inventory sources

Current out-of-scope services

Conference bookings, meeting and events, air charter, rail, ferry, bus

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 Travel Supply Chain – Multiple Suppliers

The TMC is the overarching facilitator between NSWG and the travel suppliers. NSW Procurement on behalf of the whole of
NSWG establishes and maintains direct relationships with airlines, car rental companies, accommodation suppliers,
technology providers and payment facilities providers.

The VTC is a payment facilitator between the TMC and NSWG and other eligible buyers.

10 NSWG Clustered
Travel suppliers Agencies

Industry,

Travel Education Skills and

Regional
Development

Expedia,
THN,
Management BOOKINGS
Family and
GDS Company Community
Services
Justice

Avis,
Finance,
Hertz, Services Planning
and
Budget and Environment
Qantas, PAYMENTS
Innovation

Virgin,
Rex Premier
NSW Health and
Cabinet

Transport Treasury
for NSW

Eligible Buyers

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 Travel Cost Drivers

NSW Procurement has to have a good understanding of cost drivers to be able to negotiate strong commercial positions

Competitive
Travellers not market Enhancements
requiring full to technology,
service airlines (digital booking
has led to tools, ticketing
introduction of and mobile
low cost carriers technology)
Key Opportunities

The introduction Airline cost is • Use technology enhancements

and increased driven by jet fuel
cost of ancillary cost and • Understand the impact of
charges availability supplier alliances
• Benefit from new travel industry
Cost Drivers suppliers
• Leverage off market influences
Industry and and competition
Airline
infrastructure
scheduling,
demand
introduction of
influence market
additional routes
conditions

New suppliers
Air, car and entering the
accommodation domestic and
inventory international
market
Supplier
alliances

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4 Year Plan

Identify contract leakage and work with agencies to

transition to our whole of government contracts

• Travel Management Services Decrease average ticket price and lost savings

• Air Travel Extend travel category to include conference, meetings and

events, taxis and charter flights.

• Virtual Travel Card
Increase awareness and improve management of credits on
hold within Agencies
• Accommodation
Increase online bookings to 80%
• Car Hire
Support in the development and improvement of agencies
travel approval processes
• Other Services

Full compliance with NSWG travel policies

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 Version History

Version Start Date End Date Change to Previous Version Changed By Approved By

V1 20/3/17 21/3/17 2017 Refresh NSWP Travel Team PLG

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This is a dynamic document and is subject to approved updates and changes as required at any time