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Travel Management

A Private Equity House launched a centralised procurement initiative targeting travel management across its portfolio companies. This effort aimed to capitalise on the combined scale of the portfolio and apply best-in-class procurement practices to deliver significant cost savings and improved operational control.

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Travel was identified as a high-priority indirect spend category due to its fragmented management across the portfolio, poor adoption of Travel Management Companies (TMCs), and limited visibility into travel data. With a combined estimated travel spend of $100 million across the portfolio, the initiative sought to unlock 10–15% in savings—equivalent to $100 million—by addressing key levers: governance and policy, technology and tools, and commercial optimisation.

APPROACH

The programme was executed in two phases

Pilot Workshop

Convened key stakeholders from four pilot portfolio companies (PortCos) to understand current practices, challenges, and objectives.

Market Tender (RFP)

Invited eight best in class TMCs to bid, benchmark service capabilities, and identify best-in-class partners. A structured evaluation matrix assessed user experience, technology, cost competitiveness, and global coverage.

Key Findings

  • Opportunity: Across the portfolio, TMC adoption was low, data quality was poor, and compliance with travel policies was inconsistent.

  • Pain Points:

    • Lack of policy enforcement and fragmented approvals

    • Poor user experience and insufficient booking content

    • Suboptimal rate negotiations with suppliers due to limited volume leverage

  • Technology: New tools such as re-shopping engines, policy integration, and broader content aggregators provided scope for automation and cost efficiency.

  • Marketplace Dynamics: Consolidation in the TMC space and innovation in online booking platforms created a window for improved procurement outcomes.

Solution Design

A new Travel Management Eco-System was proposed for portfolio-wide implementation, incorporating:

  • A single global TMC platform to improve adoption and visibility

  • Policy overhauls to enforce compliance and enable dynamic governance

  • Aggregated negotiations with major airlines and hotel chains, supported by Private Equity house-led commercial partnerships

  • Enhanced reporting and analytics to track missed savings, off-channel bookings, and travel patterns

TMC Selection and Outcomes

A single TMC emerged as the top choice for the following reasons:

  • Best-in-class user interface and booking experience

  • Strong global coverage and integration of NDC content

  • Competitive pricing with hotel rebate incentives (up to 2% of spend)

  • Technology-led solutions including rebooking tools and policy integration

  • Strong performance management and reporting

Projected Benefits

  • Savings: Up to 15% across air, hotel, and car hire through better rates, rebates, and reduced off-policy spend

  • Compliance: Increased visibility into bookings, reduced maverick travel, and improved traveller safety

  • User Adoption: Enhanced experience likely to increase online bookings through TMC platforms

  • ESG: Improved reporting on carbon emissions and better alignment with sustainability goals

Conclusion

The Travel Management initiative marks a transformative shift in how Private Equity portfolio companies manage travel. By consolidating spend, standardising tools and policies, and leveraging scale, the programme is poised to deliver significant cost savings, enhanced control, and improved traveller experience across the group.

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