Travel Management 101.

• Author: MAYER, KATHY
• Position: Industry Overview - Statistical Data Included

Do you know about "soft-dollar programs and "booking engines"?

Up to speed on soft-dollar programs, booking engines, waivers and favors, and travel management? Those are some of the buzzwords driving business travel today. And if you're not capitalizing on them, you may be spending more than you need to.

Soft-dollar programs deliver free perks, such as airline upgrades, special seating or even tickets. Booking engines--travel agencies' private-label Web sites--offer on-line travel planning. Waivers and favors are the exceptions and special treatment that agencies often secure for clients. And travel management is the discipline that brings all these together, along with corporate travel policies and negotiated rates.

"Travel can be a cost that can sneak up on companies," says Jerry Leuthold, vice president of sales for Indianapolis-based Ross & Babcock Travel, which also operates in Bloomington, Connersville, Lafayette and Richmond.

"What's happening is a lot of companies are losing control because people are Out there like loose cannons, surfing the Web with the no control," says Robert Haynie, owner of Evansville-based Haynie Travel Service. The answer, he and other Indiana travel agents say, is to adopt a travel policy. Those employees who like on-line booking can use the agency's private-label site. "Then have them cue it to your rep here," Haynie says. "We can review it, check the travel policy, and deliver the ticket to you."

"There's a ton of technology this day and age to help us create an electronic travel policy that allows us to massage the travel in a certain direction that will maximize perks, benefits, upgrades, free tickets and discounts," says J. Craig Irvine, owner of Lafayette's Irvine Travel Service. "Airlines love to work with corporations that are willing to make commitments to their carrier and we as a travel management company try to match the two up so it's a win/win."

"A travel policy is key," Leuthold says. "It helps set the tone for a company's travelers, for what's expected of them when traveling on behalf of the company. It gives them guidelines in terms of how much they can spend, when they can spend more money on a ticket based on less flying time, and total savings at risk. It guides them on the types of cars to rent and the level of hotel properties." Policies typically cover auto insurance requirements and fuel purchase options on rental cars.

Ross & Babcock is among numerous agents offering free assistance...