News

Corporates incurring costs by booking late

A failure by business travellers to book their flights far enough in advance is the main area in which companies can make cost savings.


A poll by travel management giant Egencia, that is owned by Expedia, highlighted lack of compliance in travel policies and urged corporates to take action.


The global survey of 348 travel executives revealed that 95% view compliance as “important to extremely important” to the success of their travel programmes in 2011.


But a lack of compliance can mean missed opportunities for corporations to conserve funds, and can ultimately damage the bottom line. Respondents identified failure to book air travel far enough in advance (68%) as the number one area where travelers tend not to comply.


Respondents identified other areas of frequently breached compliance, including: 
 
•         Not booking preferred carriers or lowest logical fares (42%)
•         Booking more expensive hotel rooms (32%)
•         Not booking hotel rooms with preferred hotel partners (30%)
 
Revealing the results of the 2011 Global Cost Avoidance Study, senior vice president Egencia Americas Mark Hollyhead said: “Given that air and hotel prices are expected to increase in 2011, it’s now more important than ever to focus on policy enforcement and cost avoidance strategies to control corporate travel spend.”


To encourage compliance with their travellers, half of respondents proactively communicate their corporate travel policy as updates occur. Sixteen per cent communicate quarterly, 11% yearly, but 4% never communicate.


Additionally, 77% noted that they do not use incentives to keep their travellers compliant with their corporate travel policy.
 
“Establishing and enforcing a comprehensive corporate travel policy is the heart of any successful corporate travel management programme,” Hollyhead said. 


When asked how they promoted travel spend accountability within their company, 56% have a pre-trip approval system for approving or denying travel before booking, while 37% identify ‘rogue’ travellers and follow-up with them directly, and 36% provide department managers with a specific travel budget they manage and own.
 


 

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.