Smart Acquisition for Travel Agencies
Written by – Tsvia Dahan, CEO, ComBTAS

Acquisition is a measurable management instrument that can quantify departmental functioning and achievements. 
"Smart" acquisition contributes directly and significantly to savings, effective budget utilization, and expenditure minimization.

The parameters that influence travel-related acquisition decisions can be divided into two main categories:  intra-organizational and extra-organizational.

Intra-organizational – the monetary value (MV) that we want to achieve via management of the organization's travel portfolio.  What is more important to us – dollars or service?  How can we develop added value for the travel portfolio?
Determining the MV also affects acquisition policy strategy:  centralized acquisition – one supplier, one address; decentralized acquisition – use of multiple suppliers, based on the savings offered.  Although decentralized acquisition ensures cost savings (= money), it wastes coordination time.  Centralized acquisition saves time but costs more.
These costs can be measured and a decision can be made regarding organizational priorities.

Extra-organizational – Contractual agreements with suppliers – usually travel agents already known to us.

1. What monetary savings will be obtained via the contractual arrangement with the supplier?
2. What level of service we will receive from the supplier?

Smart acquisition is an outcome of:

1. The nature of the organization
2. The travel profile
3. Expanding circles of knowledge
4. Technology.

1. The organization's behavior

All the parameters that affect the organization’s behavior, such as: the personal interaction, operational details, long-term planning, "transparent"/consistent policy and the cultural nature of the management.

2. Travel profile

Highly important organizational tool for managing the travel process and for travel-related acquisitions.  The travel profile provides us with the data we need in order to execute better acquisitions for the company’s needs.  It can help us decide which agency we need, what level of product we require, how to concentrate movement with a specific airline or shift it elsewhere, how to perform graduated/selective acquisitions, etc.
Basic travel profile including the following parameters:  travel portfolio turnover, breakdown by categories, airlines, departments, destinations, etc.

3. Expanding circles of knowledge and cooperation

Familiarization with the work environment, movement of knowledge within the reference group, exposure to different suppliers, access to various knowledge sources, execution of centralized acquisition for the purpose of improving contractual agreements vis-à-vis suppliers.

4. Technology

A system that encompasses the entire travel process will enable the organization to verify that decisions taken by the managerial echelon are being implemented on the ground at any given time, and over the long term.  This kind of system provides the acquisition department with a tool for measuring and quantifying acquisitions and for guiding the organization toward its objectives and putting decisions into practice over time.