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The General Services Administration solicitation for a management information system solution is the next logical step forward in trying to capture the data necessary to get a handle on overall spending, to identify travel patterns, to negotiate rates, and to make statistical data available that will prove invaluable for the various agencies. Overall spending: Today trying to gather government travel data is virtually impossible. Every department is doing its own thing and there is no easy way to capture the statistical information needed to control costs, to reduce spending, and to set budgets.
Travel patterns: It is very difficult to know what you need without destination and vendor spend. Today each agency is meeting its mission without regard for what a sister agency might be doing. Once this data is centralized it will allow government to see the whole picture. What is needed, where and when.
Negotiate rates: Spend data is buying power. Once top destinations with associated numbers of travelers with origin and destination stats, room nights, and car rentals are identified it will be a simple process to buy in larger lots.
Statistical data: It is important to know your markets and travel patterns. If you set up preferred ‘partners’ with all vendors, then the whole process breaks down to money. In such an environment vendors go bankrupt and eventually it causes prices to skyrocket. In the private sector best business practices dictate that customers select a minimal number of vendors to meet their needs and drive market share.
Yes, selling today is value-added; it is about solving customers problems, knowing your customers” customers needs, and bringing consultative resolutions to the negotiations. Business relationships are not one shot deals, but long term partnerships. And, it all starts with having access to travel/spend data!
By Linda Colvos