Case Study: Achieving Over 20% International Airfare Savings
Qualcomm is a leading global provider of wireless communication technologies and services, which plays a critical role in the rapid adoption and growth of 3G and next generation wireless around the world.
Qualcomm required the services of a travel management company (TMC) that could provide a high quality, ‘one stop service’ covering all its travel needs throughout China. It also sought a TMC that could guide and convince its travelers to follow the company’s policy, to realize maximum savings.
Qualcomm's core aim was (and still is) to achieve savings and effective travel management while maintaining safety and comfort for its travelling staff. The company requires efficient and effective booking processes, regular reporting and data analysis, employee traveler tracking to identify reasons for missed savings, and expert advice on cost savings and travel management.
FCM Travel Solutions has provided travel management for Qualcomm China since 2006.
Our successful relationship has been based on mutual trust, positive solutions and effective execution enabling Qualcomm to stay focused on its core business.
Read on to find out how we made it possible.
- FCM appointed dedicated teams and account managers to provide consistent service throughout China.
- Efficient booking processes, regular reporting and data analysis, employee traveler tracking were introduced to identify reasons for missed savings and expert advice on cost savings and travel management.
- Flexible and customized booking procedures, a VIP service program and an efficient feedback handling process were established to provide excellent, seamless service.
- Periodic full reporting and professional data analysis were provided to give Qualcomm a broad picture of its travel expenditure.
- Travel solutions and savings plan were designed to match Qualcomm’s cost control and policy implementation program precisely.
- With strong support from Qualcomm’s senior management, FCM efficiently implemented the new travel policy for all offices in China.
- FCM monitored the response from Qualcomm’s travelers and focused efforts on changing their booking behavior to ensure the success of the program.
- FCM also applied our strong negotiating muscle to secure competitive corporate deals with the company’s preferred airlines to boost airfare savings.
Over a three-month period after implementation, the average domestic ticket price dropped 30% compared with the same period the year before. In addition, the rate of lowest logical fare usage increased by 25% compared with the average rate 12 months earlier.
FCM’s negotiation with Qualcomm’s preferred airlines resulted in a discount of more than 20% on international fares across the company’s main routes. We also achieved a further saving of 2-5% by establishing new agreements with secondary airlines across other routes.