A Virtuoso cAse study - Sabre Travel Network

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Virtuoso is a leading luxury network of expert travel advisors and partners (hotels, ... Reduce commission ADMs (from in
A Virtuoso case study: Agency Debit Memos

A CASE STUDY

Overview:

Virtuoso

Virtuoso is a leading luxury network of expert travel advisors and partners (hotels, cruise lines, tour operators, etc.) which provides customers with an unforgettable experience full of exclusive perks and world-class customer service. Virtuoso takes great pride in its advisors who aim to maximize the value of a trip through their wide array of connections and vast industry knowledge. Due to its unique business model that yields complex itineraries, Agency Debit Memos (ADMs) have historically been a challenge.

Background:

Approach:

In September 2015, Virtuoso partnered up with Sabre to accurately identify the root causes of Virtuoso’s ADMs and associated expenses. To provide Virtuoso with more time to sell, Sabre and Virtuoso determined the best solution to decrease generated and paid ADMs and to significantly reduce the time spent researching contracts and calculating commissions.

ResearchPhase Phase Research Data Data Collection & Collection Onsite Visit & Onsite Visit

Analyze Analyze

Solutions Phase Assess Opportunity

Potential Solutions

Implement Manage Measure

• Objectives

• Data Analysis

• Prioritization

• Creative Solutions

• Project

• Metrics

• ADM Challenges

• Importance

• Testing Concepts

• Process

• ARC

• Root Cause

• Impact

• Tools

• Metrics

• Sabre

• Best Practises

• Cost Benefit

• Processes

• Coaching

• Interviews

• Services

• Feedback

• Observations

• Business Case

• Virtuoso Business

• Metrics

Prior to the engagement, Virtuoso shared two years of ADM data with Sabre for analysis before conducting onsite interviews with key players. This approach helped pinpoint root causes of their most challenging ADM issues.

A CASE STUDY

InsightS: As a result of the engagement, Sabre provided the following insights: • Metrics - such as the number and amount of issued and paid ADMs broken out by reason and carrier •

Root causes



An estimation of under-collected commissions

• Operational process maps, metrics and improvements • A detailed understanding of operational expenses associated with ADM creation and management •

Strategic options to mitigate ADM exposure

Recommendations (Potential Outcome): Virtuoso collaborated with various Sabre teams to customize solutions that would optimize Sabre Automated Exchange and Direct Fare Filing in order to position Virtuoso to: •

Reduce the total amount of ADMs paid and the average paid ADM per ticket by 51%



Reduce commission ADMs (from inaccurately applied commissions) by 76%

Virtuoso

A CASE STUDY

Virtuoso

Outcome: Virtuoso’s bottom line has significantly improved. When comparing Q1 2015 with Q1 2016, overall ADM volume increased for tickets completed on non-Sabre GDSs. However, ADMs issued on Sabre tickets decreased by 64% and the amount of these ADMs decreased by 57%. Similarly, commission ADMs issued on Sabre tickets decreased by 68% and the amount of these commission ADMs decreased by 66%.

potential outcome Reduce the total amount of ADMs paid and the average paid ADM per ticket by 51%

Reduce commission ADMs (from inaccurately applied commissions) by 76%

Virtuoso is also well positioned to observe the following workflow efficiencies: •

 xchange processing time is expected E to decrease by at least 80%



Reduction in commission calculation time of over 60%



Reduce the time taken to check commission calculations by approximately 67%

ADM management costs are expected to decrease by 49%

Sabre is an innovative technology company that leads the travel industry by helping our customers succeed.

actual outcome •

 DMs issued on Sabre tickets decreased by A 64%



The amount of these ADMs decreased by 57%



Commission ADMs issued on Sabre tickets decreased by 68%



The amount of these commission ADMs decreased by 66% “Since working with Sabre’s analysts, debit memos have seen a dramatic decrease. The insights provided by Sabre’s analysts have proven to be a substantial benefit to our business. Commission quoting accuracy is now 90 percent and fare/commission quoting time has decreased from 15-45 minutes to a matter of seconds.”

STEVE WOOSTER

Director of Services and Air Operations at Virtuoso

Unless indicated otherwise, all trademarks and service marks herein are trademarks of an affiliate of Sabre Corporation including, but not limited to, Sabre and Sabre Travel Network. All other marks are the property of their respective owners. © 2003-2017 Sabre GLBL Inc. All rights reserved. Sabre Corporation, No 1 Church Road, Richmond, UK TW9 2QE

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