UB to realize cost savings in travel partnership

By ARTHUR PAGE
News Services Director

In theory, the $5 million a year that UB spends on travel expenses should earn travelers significant volume discounts.

Savings, however, have been limited because individual offices and departments have used separate travel agencies.

In an attempt to realize cost savings through consolidation with one travel agency, the university earlier this year entered into a partnership with NFT Travel Service, Inc. to provide travel-related services and act as UB's official travel agency.

Based on third-quarter reports from NFT Travel, the venture appears to be paying off, according to Thomas E. Okon, manager of travel services in the Office of Accounting and Payroll Services.

"It is quite apparent, based on the increased volumes observed each quarter, that NFT Travel is being widely used across campus and is having a very positive effect on UB's effort to reduce costs without reducing services," he added.

The report shows total airline volume booked through NFT increasing, from $194,343 in the first quarter of the year to $264,564 in the third quarter, with a corresponding drop in the average ticket price from $438.11 to $394.76.

The increase in airline volume booked, Okon noted, "is significant because the revenue-sharing program in place with NFT Travel is driven by total airline volume."

The drop in average ticket price, he added, "indicates UB travelers are taking advantage of the up-front discounts negotiated with the preferred airlines, as well as NFT Travel's ability, through improved technology and familiarity with travel patterns, to obtain lowest available airfares."

Okon noted that there also has been an optimistic downturn in the average daily car-rental cost: from $44.50 in the first quarter, to $38.91 in the third quarter, resulting from negotiated prices UB has established with preferred rental-car partners through NFT Travel.

"Other benefits being received by UB from preferred travel partners," he added, "cannot necessarily be quantified. These include upgrades in airline, hotel and rental-car bookings, on-campus ticket delivery, discounts on airport parking, strategic reporting and improved customer service."

Leonard F. Snyder, senior associate vice president for university services, stressed that the savings are two-fold. In addition to lower prices, the partnership results in rebates and revenue sharing that "will go directly back into the departments. It's part of an overall attempt at UB to operate more intelligently and economically."

To educate the campus about the new partnership, NFT Travel will present a "Travel Fair" from 9 a.m. to 3 p.m. on Nov. 10 and 11 in the Student Union on the North Campus.

Companies that NFT Travel commonly uses, including National Car Rental, U.S. Airways and Radisson Hotels, will run information booths in the Student Union.

While UB personnel are not required to use NFT, Okon pointed out that discounts are not the only reason to work with the travel agency.

"They are the No. 1 corporate agency in Western New York, and they've been in business for 25 years. Under their system, tickets can be delivered right to your desktop. They are setting up a Web site that will let travelers plot their whole trip electronically."

NFT has taken advantage of computer technology in other ways, as well, Okon explained. "They have a computer system called 'Travel Commander' that continues to check for cheaper rates, even after you make a reservation. Then it notifies you if it finds a lower price."

Okon admitted that some people may be reluctant to change travel agencies. "They may be comfortable with the agency they've been using," he said, even though it probably charges more.

Okon said he and representatives of NFT Travel are available to explain the benefits of the partnership to groups of faculty members and staff. Sessions may be arranged by contacting him at 645-2660, ext. 251.