Tighten up your travel policy

15 May 2015

How well do you follow company policy for business travel?

Achieving travel policy compliance is more difficult than simply changing booking guidelines. Acquiring long term savings often requires changes in buying culture and regular enforcement of company policy. If traveller compliance isn’t measured effectively, improving your company’s travel performance and bottom line becomes much more difficult.

What’s the value of compliance?

Professionally designed travel policies deliver value through consolidation, use of preferred partners and increased time efficiencies. Regular non-compliance delivers a larger overall travel bill, reduces flexibility in itineraries and increases time spent on making travel arrangements.  

Companies can use a number of strategies to boost compliance such as policy consulting, traveller training and incentive based rewards for compliant behavior. Non-compliant bookings can impact your bottom line by:

Missing advance purchase savings

Businesses can pay up to an average of 39 per cent more for airfares booked fewer than 21 days from their departure date.

Buying unrestricted airfares

Travellers who purchase flexible fares knowing their plans are unlikely to change can increase airfare spending by up to 10 per cent.

Ignoring preferred suppliers

Ignoring preferred suppliers can affect negotiated discounts and pricing that would otherwise deliver savings. 

Using mandated booking channels

Booking outside mandated channels reduces spending visibility and increases the time spent on reconciling accounts.

How to counteract non-compliance

Companies that experience widespread non-compliance can take measures to counteract rogue bookings and lost savings. Travellers should be educated on policy requirements, savings and time efficiencies. Ultimately, a travel policy’s effectiveness directly corresponds to how seriously it is enforced. Employees should be regularly updated on policy changes or revised guidelines. Your Travel Manager can assist in designing a strategy for enforcement that is tailored to your corporate culture.