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FESTIVE ROAD and CISCO Case Study

Transforming Travel Programs

TRANSFORMING TRAVEL PROGRAMS: HOW THE CISCO AND FESTIVE ROAD PARTNERSHIP OVERHAULED A 25 YEAR TMC RELATIONSHIP, DRIVING INNOVATION AND A 34% REDUCTION IN TOTAL COST OF OWNERSHIP

Cisco is the worldwide technology leader that securely connects everything to make anything possible. Their purpose is to power an inclusive future for all by helping their customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Cisco is headquartered in San Jose, California, US with 90,000 + employees and operates in over 100 countries.

The Issue

Cisco’s Travel Team partnered with FESTIVE ROAD to address longstanding business travel operational challenges and establish a clear strategy for their travel management needs. FESTIVE ROAD, the only purpose-led, people- first company providing independent consulting and outsourcing services to buyers for global travel, meetings, and payment, was engaged to drive the initiative and bring strategic expertise.

At a glance

Challenges

  • 25-year partnership with incumbent TMC became outdated and lacked innovation.
  • Misalignment between TMC’s standard offerings and Cisco’s evolving business needs.
  • Challenges with program governance and poor service quality, especially for VIP travelers.
  • Integration challenges with third-party services, such as data aggregation and approval workflows.
  • Need for a more modernized, adaptable travel management solution to support Cisco’s future growth.

Outcomes

  • 34% reduction in total cost of ownership.
  • Revitalized partnership with the incumbent TMC, aligned with Cisco’s long-term vision.
  • New governance structure with SLAs and KPIs aligned to the updated strategy.
  • Improved service configuration tailored to evolving traveler needs.
  • Virtual Global Hub implementation, leveraging Cisco’s Webex and telephony systems.
  • Successful sourcing of suppliers using a reverse RFP approach and comprehensive scenario testing.
  • Established a framework for continuous innovation in Cisco’s travel program.
With significant changes in the industry and new marketplace dynamics, the mission was to;

  • Explore innovative options to optimize Cisco’s travel program
  • Assess if the current Travel Management Company (TMC) was the right fit for the new strategy
  • Determine if a Request for Proposal (RFP) was necessary, and if so, to source a TMC to align services to better meet Cisco’s evolving priorities

The Issue

With the goal of future-proofing their program, Cisco’s travel team faced multiple challenges as they approached the end of a longstanding TMC contract. The 25- year partnership and 20-year-old operational model had become outdated, leading to limited innovation and a lack of flexibility in integrating new technology and services. Program governance was minimal, and the ideal experience for travelers and arrangers was not mapped, contributing to various issues including low VIP service quality and an overall misalignment between the TMC’s standard offerings and Cisco’s unique priorities.

The travel team also sought a more innovative approach to travel management and a seamless integration of direct agreements with third-party micro-services, such as data aggregation, approval workflows, and hotel reshopping. Recognizing the need for a modernized, adaptable travel management solution, FESTIVE ROAD was appointed to purposefully evaluate the existing model, identifying areas for improvement, and create a clear, actionable path forward.

The Solution

Strategy – From Point of Departure to Point of Arrival

FESTIVE ROAD used its deep program assessment framework tailored to Cisco’s priorities, to develop a roadmap to modernize Cisco’s travel management program.

First, was an internal assessment which included evaluating partner cultural attributes, listening to travelers and stakeholders, mapping the traveler journey to identify key pain points and future needs and a total cost of ownership baseline and benchmarking.

Next, FESTIVE ROAD provided a tailored external marketplace assessment to show Cisco the ‘Art of Possible’ and the supplier landscape from established providers to emerging platforms.

Then FESTIVE ROAD guided the development of the desired future program model with a sourcing strategy to assess the best suppliers to achieve the future state.

Sourcing – A Rewired Approach to Assess Culture, Capabilities and Commercials

Utilizing FESTIVE ROAD’s extensive sourcing experience and proprietary 12 step process to find the right strategic partner, sourcing began with a selection of five TMCs to participate in culture fit sessions.

FESTIVE ROAD designed and facilitated these sessions to allow both parties to determine if there is cultural alignment. FESTIVE ROAD then used its reverse RFP approach to evaluate TMCs on key capabilities for Cisco such as New Distribution Capability (NDC), service configuration, AI, and sustainability.

The RFP was followed by deep dive Scenario Workshops which FESTIVE ROAD curated to test the capability match and reality of delivery.

Finally, the TMC proposals were benchmarked utilizing the FESTIVE ROAD proprietary database of more than 420,000 proposed or agreed transaction fees which guided effective negotiations and gave Cisco confidence they achieved the right financial terms.

The Result

The sourcing process culminated in Cisco selecting their incumbent TMC, but with a revitalized partnership model designed for future success. This ensured the new partnership would be innovative, cost-effective, and aligned with Cisco’s long-term vision.

Because Cisco executive sponsors were informed and engaged throughout the process, decisions were timely and it was easier to get buy-in for changes with the TMC partnership.

FESTIVE ROAD worked with Cisco and the TMC to establish:

  • A new governance structure with SLAs and KPIs aligned to the updated program strategy
  • An improved service configuration tailored to Cisco’s evolving needs
  • A Virtual Global Hub was implemented, leveraging Cisco’s telephony and Webex systems to streamline support and reduce Cisco’s carbon footprint
  • A notable 34% reduction in total cost of ownership

WHAT THEY SAY…

“Cisco has a good travel programme that works across 96 countries, but we are not complacent and were looking for innovation to support future business needs as travel landscape changes. The team agreed on their objectives for change and challenges with the current offering – along with the setting out a vision for the future and what qualities would be needed to be successful, whilst maintaining one programme and one policy globally. Festive Road supported Cisco in creating a framework and model that allowed a fair and open RFP.”

Carlos Almendros
Director Global Travel, Card, Marketing and Communications Leader at Cisco

“The redefined partnership now positions Cisco’s travel program to successfully adapt to future industry advancements, creating a travel experience that is more efficient and aligned with Cisco’s growth and innovation goals. With this strong foundation, Cisco is well- equipped to continue realizing value, delivering an enhanced service, and meeting the growing needs of their travelers and stakeholders.”

Lora Ellis
Head of Consulting at FESTIVE ROAD

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