2016 U.S.-Booked Air Volume: $147.5 million
Principal Air Suppliers: United, Delta
Principal Hotel Suppliers: Marriott, Hilton, Hyatt
Principal Car Rental Suppliers: Avis/Budget
Principal Online Booking Tool: Concur
Principal Card Supplier: American Express
Principal Expense Supplier: Concur
Consolidated Global TMC: Amex GBT
Johnson & Johnson continued its global T&E migration
to Concur in 2016. It rolled out Concur's online booking tool to over 20 more
countries. Last year, the multinational consumer goods, medical device and
pharmaceutical company increased its advanced-air booking requirement from 14
to 21 days and modified thresholds for lowest logical fares for both domestic
and international flights. Across all operating companies, it rolled out a
pre-trip approval tool and provided a list of cost-savings options from
procurement to help them achieve their targets. The initiatives helped drive a
10 percent reduction in travel and meetings spend. For its top 20 air travel
city pairs, the company spent 23 percent less than industry benchmarks for
business class and 7 percent less for economy. Negotiated rates for preferred
properties in the global hotel program were 9 percent lower than industry
benchmarks, and 74 percent of lodging costs were covered by negotiated
discounts and rates at preferred chains.
Johnson & Johnson plans to expand the Concur online
booking tool to another 40 countries by year-end. The company plans a global
travel management program for nonemployees to aid policy and supplier
compliance. Johnson & Johnson also will look into content consolidators and
re-booking tools and is changing its travel policy to allow ride-sharing. The
company decreased its U.S.-booked air spend by 19 percent in 2016 and expects
compliance and company directives to reduce s it by an additional 8 percent
this year to $145 million.