It has long been said that the best way to drive savings to a corporate travel program is by having a strong travel policy. A travel company uses a policy like a roadmap, allowing us to select the best airfares, hotel and car rates for travelers. In 2012, TravelPlex found we were able to decrease travel spend for our clients by anywhere from 10% to as much as 25% with a solid travel policy in place.
The Global Business Travel Association (GBTA) recently polled over 2,400 business travelers and found that the average traveler spent almost $3,000 more by booking out of the company’s policy. This illustrates WHY a travel policy is so integral in reducing travel costs. If your company does not have a travel policy, TravelPlex can help you design one. If you have a policy, but it has not been updated within the past two years, let us look it over and bring it up to industry best practices. This way your company can maximize the savings that may be slipping through the cracks.
For more on this, read JoAnn DeLuna’s piece recently published in The Business Travel News. Hopefully, she won’t be talking about any of your travelers.
GBTA: Noncompliant Bookings Cost Companies Thousands Per Traveler Annually
By JoAnn DeLuna of Business Travel News
U.S. business travelers who work for organizations with managed travel programs but book outside of policy on average spent $2,881 more per year than did "in-policy" travelers, according to a survey conducted by Rockbridge Associates for the Global Business Travel Association and Concur. The research was presented during an Aug. 22 webinar hosted by GBTA.
Rockbridge in January and February 2013 surveyed 2,415 business travelers and 342 travel managers in the United States, United Kingdom, Canada, France, Germany and Australia. Qualified business travelers had to be employed full-time at a company with at least 10 employees and a mandated or guideline-based travel program, and had to have taken at least one business trip of at least 50 miles in the prior three months and four business trips in the prior year.
The study defined "out-of-policy" travelers as those who "did not use the company's preferred reservations tool, chose a higher class or more expensive options that were out of policy for their company." Of the 869 U.S. business travelers surveyed, about 59 percent met this criteria for at least one major expense on their most recent trip, according to the presentation.