Case Study: Travel partnership helps Education NFP save
Travel partnership helps Education NFP save
For the 2018/19 financial year Edmund Rice Education Australia saved $250,000* on airfares as a result of its unique partnership with FCM and Procurement Australia.
Procurement Australia member and Catholic Education not-for-profit, Edmund Rice Education Australia (EREA) operates a network of schools, entities and offices. The organisation includes more than 50 schools around Australia with a student body of around 38,000 primary and secondary school pupils.
Since partnering with FCM in 2011, EREA has established a close working relationship with their FCM team. FCM works collaboratively with EREA to ensure they are leveraging the travel benefits of being part of the Procurement Australia network and provides the NFP with valuable insight into how their travel program is tracking.
The Travel Partnership
EREA’s core group of travellers are based in the group’s Melbourne office. While many employees travel from across the organisation, it is the EREA National Executive, EREA Leadership team and the Mission Service teams that make up for the bulk of the domestic corporate travel. The organisation also has a team of five travel bookers to help internally with staff travel bookings.
A key benefit of being part of the Procurement Australia network is the discount members receive on airfares.
For the 2018/19 financial year Edmund Rice Education Australia saved $250,000* on airfares as a result of using Procurement Australia’s negotiated fares.
Most of EREA’s travellers also have Virgin Australia and Qantas Club lounge memberships, which Procurement Australia has negotiated competitive rates for its members.
EREA’s travel policy includes a $200 rate cap on hotels. While this is not always possible to meet, the organisation draws on the hotel rates that have been negotiated by Procurement Australia and FCM to curb rising hotel prices in Australia’s city hubs. Additionally, through FCM, EREA has access to over 1 million hotels including Expedia rates.
As part of the Procurement Australia network, EREA taps into the negotiated rates available for car hire. Negotiated rates are available through Avis and Hertz.
Part of the partnership is to ensure EREA continuously benefits from FCM’s strategic travel management advice and that the organisation has easy access to the negotiated rates and fares that are available to them. FCM has customised EREA’s online booking tool so their negotiated airfares, hotel and car hire rates are easy to identify and book.
FCM provides quarterly program management reviews to EREA to demonstrate where they are achieving savings on their travel expenditure and where there are further improvements that can be made.
“Because we’re a not-for-profit organisation, we are conscious of how money is spent on travel. We have travel policy limits and guidelines that we adhere to. It’s not always possible to keep to aspects such as rate caps when there is high demand that causes rates to increase, but with help from FCM and Procurement Australia's discounts we try to adhere to policy guidelines to keep travel costs down.”
Personal Assistant to the Executive Director
Edmund Rice Education Australia