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Oil and Gas Fares Project

08 February 2016

By Valerie Van Dyke, HRG Business Manager

Our client is a Switzerland-based oilfield service specialist, they wanted to reduce travel costs without cutting back on travel.

We proposed an oil and gas fares program to combat rising international travel costs while still maintaining negotiated airline agreements.

Utilizing existing long term relationships with key suppliers with market share between cities typical to oil and gas companies enabled us to provide oil and gas discount fares to customers. This newly structured oil and gas fares program was designed to complement the HRG Global Pricing Desk already servicing the client.

To demonstrate how the program would work we set up a pilot of the program with the client’s permission.

The set up of the test required a complete process creation for the operations team so that all newly created international PNR’s would be automatically queued for review. The team worked with the business technology group to program the mid-office technology to recognize these PNR’s, put a hold on the auto ticketing function, and then send them to the appropriate queue.

Once received, the PNR’s were worked and comments placed in the PNR either stating that no lower fare could be found, or that a lower fare was found – providing the details based on their travel policy. If a lower fare was found, the travel consultant contacted the customer to provide the option, and then document the PNR.

The final step in the process, if the lower fare was accepted, is the reservation. This was documented by the travel consultant and sent for ticketing.

24/7 service was also provided to assist with the reissue or work PNR’s during After Hours. The HRG After- Hours team are fully trained in the handling of these reservations.

To ensure our clients’ negotiated agreements were not cannibalized and market-share commitments not harmed, selected preferred carriers were excluded from the oil and gas program. Airline performance deal tracking was carried out quarterly to ensure commitments are met to preferred carriers.

The success of this project was measured by the savings to the customer. Savings were identified on less than 5% of total tickets issued, but where identified, average savings of $600 per ticket have been delivered.

Since the inception of the program in August 2010, the client has realized savings of $94,000 resulting in healthy commissions.

Our ability to customize the offering based on the client’s existing airline commitments has allowed them to reap the discounts from their airline program without jeopardizing their contractual obligations.

Since roll out of this program, we have also implemented it with another HRG North American client who is reaping similar savings.

The travel manager for North America, at the client company said:

“We are very pleased with the savings achieved with the oil and gas fares and with the seamless way it has been incorporated into our offering to our travelers. It is a great addition to our airline program.”

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