Innovative Fee Structure / Savings Related Incentive
Problem
Client WG put their travel account out to tender and was looking for a proactive agent who would work in true partnership with them and demonstrate accountability.
Solution
Millennium submitted a detailed proposal and supported this with a Management Fee. However to reinforce our commitment and demonstrate our ability to save money we reduced our profit requirement and replaced it with a savings related incentive.
We proposed to identify benchmark fares that complied with policy and then take a percentage of savings achieved below the pre agreed benchmark fare. This way an element of the cost of using our services was funded by savings previously not attained.
This scheme ran for a year, at which point it was agreed to have served its purpose. The cheaper fares sourced by Millennium became the new Policy benchmark fares, thus the average ticket price had been reduced