Problem
Client I based in the West Country had been a valuable customer for a number of years. A new Purchasing Manager was appointed with a brief of controlling travel costs. Whilst it was recognised that the agent’s cost in the overall travel budgeting process was minimal, there was a business need to be able to better budget for this.

Solution
Client I had been on Millennium’s standard and simple Transaction Fee scheme, whereby the total cost of using our services over the year was dependent upon the number of transactions (a variable).

To assist our client in achieving their objective Millennium looked to restructured their charges. Management reports run over the preceding years identified the patterns and trends of the business thus enabling us to accurately budget for anticipated costs. Once commission income was identified, the net cost to I could be calculated.

This cost was fixed for a 12 month period (subject to certain mutually agreed tolerances) and levied as a quarterly management fee so enabling the client to more accurately budget for its travel costs.