To help make the the majority of your corporate travel budget, it is critical to plan for leveraging your program for many it can be worth. Telling travelers to decide on the best logical airfare is just not enough. Here are the elements that needs to be considered when planning or evaluating your travel program.
A nicely written and disseminated travel policy may be the reasons for any good travel program, and i also am consistently amazed that so many corporations have such an outdated and poorly conceived travel policy, in case they have one whatsoever. It is really not difficult to find a nicely written policy. One is available online very easily. Everything remains is that it is edited to mirror corporate culture, and disseminated within the company to ensure that everyone understands and agrees to go by it. For that reason, it is advisable to obtain everyone sign a duplicate of your travel policy to make certain that it is actually read, understood and owned by all company staff. I would recommend that everybody in the company signs a duplicate of your travel policy, if they travel or otherwise. They can change positions within the company later and be required to travel. A travel policy need not be long or complex. Some of the best travel policies I have got ever seen were only a few pages long.
Some companies do not centralize their travel program, and they also pay an amount with regards to a lack of expense reduction opportunities and internal efficiencies. Some companies which do not centralize travel possess a the fear of requiring travelers to complete something they might not wish to accomplish, in addition to the idea that centralizing travel will require working with a Travel Manager. Both of these may be legitimate concerns however they do not have to be most instances. By requiring travelers to book centrally, you will be not necessarily causing these to lose flexibility. You may centralize travel while still allowing travelers to book by themselves, either with a travel agency of your choice, or online via a provider that you have partnered with and also have confidence in. By assigning someone using the responsibility of overseeing travel, you will get a single reason for contact both internally and externally for travel issues. When your company spends less than $1 million in air travel, you most likely do not require a whole time travel manager. In these instances, travel oversight can be made available to the finance department, human resources, and even executive travel safety. Listed here is a glance at the advantages to be gained by centralizing travel.
Whenever you centralize travel with a single agency, you gain in many important ways. You should have a single point of contact for problems while travelers are on the streets, and you will have one entity to see for all your travel needs. This eliminates the issue of consolidating a travel report from among several sources. By bringing travel together, you will gain significantly from economies of scale. Whenever you can measure total travel among various divisions or locations, 42devvqky will get more for the money from travel suppliers. This will enable you to gain more from airline soft dollar programs, which suggests more free tickets and upgrades, have a higher percentage discount from your preferred airline, and acquire better negotiated rates from your hotel and car contracts. Your fulfillment costs will decrease at the same time, when your travel agency will most likely discount their fees for a higher overall amount of travel.
It becomes an addendum towards the previous element, which calls for centralizing travel with one travel agency. This is significant, but by doing this, you need not require travelers to work with an online booking system, and you need not require travelers to call the company directly. By offering travelers the option for doing either, you will be accomplishing several goals. You may reduce your fulfillment costs, as online booking costs less in terms of services fee. By offering travelers an opportunity, you might be offering them feelings of control, thereby increasing morale and standing a better chance of any high adoption rate. Thirdly, you depart open a best practice of employing your internet booking engine cheaper complex itineraries, and allowing senior executives, frequent travelers, and complex itineraries to be booked directly having a travel agent that will offer a higher level of service and a better overall travel experience where it really is most warranted.
While the bulk of most travel programs revolve around the environment budget, there are several other locations one can investigate to locate savings opportunities. There are a handful of more obvious areas to appear, such as negotiated hotel rates on your favorite hotels, or car rental discounts having a favored supplier. Often your travel agency will currently have discounted rates through consortia affiliations and agency car contracts. In addition there are some less common areas that needs to be investigated. For example, if ground transportation is a concern, most suppliers will offer you discounted rates plus a direct billing option. Direct billing arrangements with hotels and car rental agencies may also be a great way to increase efficiencies making the position from the accounting department easier.
Most major airlines today offer hard dollar discounts along with soft dollar incentives in exchange for company loyalty with their product. Should your travel program has ended $1 million in air spend, you may secure a deduction off the lowest fares of the carrier associated with preference in return for the market share commitment. For your personal secondary carriers, or maybe your volume is under the minimum required by the airline, you are able to enter straight into soft dollar programs for free tickets and free upgrades, as well as traveler status enhancements or airport club passes. These programs require little in the form of volume, however are not well publicized so you may need to look for them or ask Baker Travel or your current agency to point you from the right direction.
Hotel volume might be overlooked but it must not be. Negotiated rates might be had using your travel agency or directly together with the hotel properties of your choice. Individual hotels near corporate locations will negotiate discounted rates for you in return for the absolute minimum room/night commitment. By using a travel agency, you will probably receive discounts of 5% to 50% on a large number of hotels worldwide.
Rental car contracts are simple to enter into and require little in the form of commitment from your corporation. Choose a partner which has airport locations as well as a track record of excellent customer satisfaction. It can save you 5-10% quickly and might also negotiate frequent renter membership for all your employees. This will make them more potent and enhance morale. You may also enter in to direct billing agreements as well that can make the jobs of your travelers and accounting staff much less stressful.
Airlines and hotels will discount your fares and rates in case you have groups traveling together or meeting at the single destination from multiple points of origin. These meeting contracts can bring you airfare discounts of 2-10%, and when you have enough travelers on a single airline, you just might negotiate totally free tickets being awarded at contract completion. The minimum requirement is generally 10 travelers going to the same place as well. Some airlines have higher minimums so be sure to ask before an agreement is generated. Hotels will discount their rates in a similar way with a minimum of 10 room nights. These discounts can range from 10% to some higher discount based upon occupancy rate and seasonal variances.
Well managed travel programs require constant monitoring and financial controls being properly leveraged. Insist on timely and customized reports that could be built to enable you to get the information you need most. By receiving regular reporting on traveler behavior and provider contract performance, you will certainly be in the better position to fulfill contract obligations, achieve cost reduction objectives to see where opportunities for future savings may lie.
Lastly, any well managed travel program will require in to account enhanced comfort and productivity with their travelers. When travelers are comfy, they could concentrate on their main priorities that assist propel your business forward. If travelers are content, they perform at the higher level. Ask if your travel agency can upgrade traveler status on the preferred airline. Look in to buying blocks of airport club passes to allow them to be applied strategically during long and complex itineraries. There are several strategies to reward travelers for that difficult and sometimes grueling chore of travel. These sorts of rewards generate feelings of loyalty and increased productivity and efficiency.