Covid19 – Lean Method will be a key success factor in the upcoming Travel industry
The health risk coupled with this unprecedented economic crisis will weigh heavily on the sector which will take time to recover.
Corporates can save up to 7% of their global travel costs thanks to new lean methods without penalizing the business.
In order to survive, the Lean methods will be more than ever needed to save business while crisis will result in many adjustments in the Travels Agencies with predictable waves of bankruptcies..
Lean management is a set of practices that aims to reduce or eliminate all the unprofitable activities of a company.
Kanban’s Lean method consists in applying optimizations to the production apparatus, in all areas including business travel.
Around 9 out of 10 companies can benefit from these cost reductions.
We can here analyze seven areas in which the Lean method applies:
|Having a clear vision to track & follow the global travel budget : Usually, the travel budget is segmented by departments and built upon the previous year expenses. But never centralized to be coordinated and optimized via possible flow synergies.||Usually practiced|
|Optimizing synergies over the global flow or travels and also during travel journeys||new|
|Optimizing trips, in particular by the elimination of useless journeys||new|
|Pooling resources to remove redundant costs, like taxis||new|
|The temporal optimization of buying tickets using Anti Yield Management, common practice as part of the corporates travel policies, but can be optimized though||Usually practiced|
|Ticket price bargaining based on critical mass purchased||Usually practiced|
|Green Lean management , as eco-responsibility becomes a priority||new|
>> Click here for a free Audit of costs savings <<
hubtobee can measure for you the different potential travel savings resulting from the Lean method on your activity without penalizing the business. They already audited successfully several large companies such as Safran, Amadeus, Schneider, Vestas, Société Générale, Collins, …
hubtobee offers you a free audit of possible savings in this area, based on your anonymized history of business travel flows for the past 12 months.
Data scientist consultant