So as to make the the majority of your corporate travel budget, it is essential to organize for leveraging your program for all those it is actually worth. Telling travelers to decide on the cheapest logical airfare is just not enough. Allow me to share the elements which should be considered when planning or evaluating corporate travel management.
A nicely written and disseminated travel policy will be the foundation of any good travel program, and that i am consistently amazed that countless corporations have this sort of outdated and poorly conceived travel policy, when they have one by any means. It is far from difficult to find a highly written policy. One can be obtained online without difficulty. All that remains is it is edited to reflect corporate culture, and disseminated within the company so that everyone understands and agrees to adhere to it. That is why, it is advisable to have everyone sign a duplicate from the travel policy to make certain that it is read, understood and belonging to all company staff. I would recommend that everyone in the company signs a copy in the travel policy, if they travel or otherwise. They can change positions inside the company later and be required to travel. A travel policy will not need to be long or complex. Some of the best travel policies I have ever seen were only a few pages long.
Most companies will not centralize their travel program, and they pay an amount regarding a loss in expense reduction opportunities and internal efficiencies. Many companies that do not centralize travel use a fear of requiring travelers to complete something they can not need to do, along with the concept that centralizing travel requires getting a Travel Manager. Both these may be legitimate concerns nonetheless they do not have to be in most cases. By requiring travelers to book centrally, you are possibly not causing these to lose flexibility. You can centralize travel while still allowing travelers to book independently, either using a travel agency of your liking, or online via a provider which you have partnered with and also have confidence in. By assigning someone with all the responsibility of overseeing travel, you are getting just one point of contact both internally and externally for travel issues. In case your company spends under $1 million in air travel, it is likely you do not need a full time travel manager. In these instances, travel oversight can be provided to the finance department, human resources, as well as an executive level assistant. What follows is a look at the advantages to be gained by centralizing travel.
If you centralize travel having a single agency, you gain in a number of important ways. You will find a single reason for contact for problems while travelers are on the streets, and you may have one entity to visit for all your travel needs. This eliminates the problem of consolidating a travel report from among several sources. By bringing travel together, you will get significantly from economies of scale. When you can measure total travel among various divisions or locations, you will get more for the money from travel suppliers. This will assist you to get more from airline soft dollar programs, meaning more free tickets and upgrades, get a higher percentage discount from your preferred airline, and obtain better negotiated rates out of your hotel and car contracts. Your fulfillment costs will decrease too, for your travel agency will most likely discount their fees for the higher overall amount of travel.
It is an addendum on the previous element, which demands centralizing travel with one travel agency. This is significant, but by doing this, you want not require travelers to use an internet based booking system, and also you will not need to require travelers to call the agency directly. By providing travelers the option of doing either, you happen to be accomplishing several goals. You are going to reduce your fulfillment costs, as online booking is cheaper in terms of something fee. By offering travelers the option, you will be providing them a sense of control, thereby increasing morale and standing a better chance of the high adoption rate. Thirdly, you depart open a best practice of using your online booking engine at a discount complex itineraries, and allowing senior executives, frequent travelers, and complex itineraries to get booked directly by using a tour operator that can give a higher level of service and a better overall travel experience where it is most warranted.
While the majority of most individual incentive trips center around the air budget, there are many other places one can investigate to find savings opportunities. You can find a handful of more obvious areas to look, including negotiated hotel rates on your favorite hotels, or car rental discounts by using a favored supplier. Often your travel agency will have discounted rates through consortia affiliations and agency car contracts. In addition there are some less frequent areas which should be investigated. By way of example, if ground transportation is a concern, most suppliers will provide discounted rates and a direct billing option. Direct billing arrangements with hotels and car rental agencies are also a great way to increase efficiencies and then make the job from the accounting department easier.
Most major airlines today offer hard dollar discounts and also soft dollar incentives in exchange for company loyalty for their product. If your travel program is over $1 million in air spend, you are able to secure a reduction off of the lowest fares of your own carrier of preference in exchange for the market share commitment. For your secondary carriers, or maybe if your volume is below the minimum essental to the airline, it is possible to enter directly into soft dollar programs for free tickets and free upgrades, in addition to traveler status enhancements or airport club passes. These programs require little in the way of volume, but they are not well publicized so you may have to search for them or ask Baker Travel or maybe your current agency to point you within the right direction.
Hotel volume is oftentimes overlooked but it really should not be. Negotiated rates may be had through your travel agency or directly with the hotel properties of your choosing. Individual hotels near corporate locations will negotiate discounted rates to suit your needs in exchange for the absolute minimum room/night commitment. By utilizing a travel agency, you may very well receive discounts of 5% to 50% on thousands of hotels worldwide.
Rental car contracts are super easy to get into and require little in the form of commitment through the corporation. Pick a partner which includes airport locations along with a track record of excellent customer service. It will save you 5-10% effortlessly and may also negotiate frequent renter membership for all your employees. This may cause them dexepky51 efficient and enhance morale. You can even enter into direct billing agreements at the same time that can make your jobs of your respective travelers and accounting staff a lot less stressful.
Airlines and hotels will discount your fares and rates if you have groups traveling together or meeting at a single destination from multiple points of origin. These meeting contracts will bring you airfare discounts of 2-10%, and if you have enough travelers on one airline, you just might negotiate for free tickets being awarded at contract completion. The minimum requirement is normally 10 travelers visiting the same place concurrently. Some airlines have higher minimums so be sure to ask before a contract is generated. Hotels will discount their rates in a similar way having a minimum of 10 room nights. These discounts may range from 10% to your much higher discount depending on occupancy rate and seasonal variances.
Well managed group travel organisers require constant monitoring and financial controls to get properly leveraged. Demand timely and customized reports that can be created to provide you with the important information most. By receiving regular reporting on traveler behavior and provider contract performance, you will be inside a better position to fulfill contract obligations, achieve cost reduction objectives and find out where opportunities for future savings may lie.
Lastly, any well managed travel program is going to take into account enhanced comfort and productivity of their travelers. When travelers are comfy, they could center on their main priorities that assist propel your company forward. If travelers are satisfied, they perform at a higher level. Find out if your travel agency can upgrade traveler status on a preferred airline. Look in to buying blocks.