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New England manufacturer opts for convenience and extra profit of $13,000

Cost of travel reduced 13%

Company had outgrown its local travel agency
A New England manufacturer has production plants in the United States and Mexico, major customers in Europe and prospective clients throughout the world.

As a company with $200 million in sales and 2,000 employees, it was becoming increasingly apparent that it had outgrown the local agency that had handled its travel arrangements for many years.

The company asked Expense Reduction Analysts (ERA) to help find cost reduction opportunities.

Employees were making their own arrangements
By studying the purchasing patterns of employees travelling on company business, ERA discovered that many made their own arrangements online rather than through the local travel agency. Although online booking can, in fact, lower costs, it fragmented travel-cost reporting and made it difficult for the company to monitor compliance with its travel policy.

The Request for Proposal (RFP) prepared by analysts focused on finding a travel processing system that integrated self-service, agent service and 24-hour assistance to book air travel, car rental and hotel accommodations.

The RFP also requested comprehensive reporting, proactive account management and employee satisfaction.
Project Information
  • Category - Travel
  • Annual Spend - $100,000
  • Annual Savings - 13%
  • Hidden Savings - $13,000


Based on the responses received, ERA recommended contracting with a large, internationally recognized agency with offices throughout the world.

The result is that employees now have a level of service that meets their needs and preferences, including 24/7 internet and phone access for self-service domestic and international travel.

The manufacturer, too, is satisfied. Compliance is easier to monitor and travel expenses are significantly reduced.
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