By Eden It is important to plan to leverage your program to maximize your corporate travel budget. It is not enough to tell travelers to choose the lowest logical airfare. These are some of the factors that you should consider when planning and evaluating your travel program.
1. Travel policy
A well-written and widely distributed travel policy is the cornerstone of any successful travel program. I am constantly amazed at how many companies have an outdated or poorly-conceived travel policy. A well-written policy is easy to find. You can easily find one online. It is important that the policy is written to reflect the corporate culture of the company and that it is distributed within the company to ensure that everyone is aware and agrees with it. To ensure everyone understands and owns the policy, it’s a good idea for them to sign a copy. It is a good idea to have everyone sign a copy of this travel policy regardless of whether they travel. They might be asked to travel if they change their positions within the company. It doesn’t have to be complicated or long. The best travel policies I’ve ever seen were just a few pages in length.
2. Centralized travel both internally and outwardly
Companies that do not centralize their travel program pay the price in lost expense reduction and reduced efficiency. Companies that don’t centralize their travel program fear that they will have to make travelers do things they do not want. They also fear that hiring a Travel Manager would be necessary to centralize travel. These are legitimate concerns, but they don’t have to be the norm. You are not limiting travelers’ flexibility by requiring them to book centrally. It is possible to centralize travel, but still allow travelers to book their travel on their own through a trusted provider or agency. You can have one point of contact for all travel questions, both internal and external. A full-time travel manager is not necessary if your company travels for less than $1million annually. These cases can be handled by the finance department, human resource, or an executive assistant. Let’s take a look at some of the benefits that centralizing travel can bring.
You gain in many important ways when you centralize your travel with one agency. Travelers will be able to contact one agency for any problems, and they will also have one place to turn to for all their travel needs. This eliminates the need to consolidate travel reports from multiple sources. You will benefit greatly from economies of scale by combining travel. You can obtain more value from your travel suppliers if you can compare total travel between different divisions and locations. This will enable you to get more out of airline soft dollar programs. You’ll get more free tickets, upgrades, and a larger percentage discount from our preferred airline. Also, your hotel and car contract rates will be better negotiated. You will also see a decrease in fulfillment costs as the travel agency will often offer discounts for higher volumes of travel.