In order to form the foremost of your corporate travel budget, it’s critical to plan for leveraging your program for all it’s worth. Telling travelers to pick rock bottom logical airfare is simply not enough. Here is the weather that ought to be considered when planning or evaluating your travel program.
1. Travel policy
a well written and disseminated travel policy is that the foundation of any good travel program, and that i am consistently amazed that numerous corporations have such an outdated and poorly conceived travel policy, if they need one in the least. It’s not difficult to seek out a well written policy. One is often found online quite easily. All that is still is that it’s edited to reflect corporate culture, and disseminated within the corporate in order that everyone understands and agrees to follow it. For this reason, it’s an honest idea to possess everyone sign a replica of the travel policy to make sure that it’s read, understood and owned by all company staff. I suggest that everybody within the company signs a replica of the travel policy, whether or not they travel or not. They change positions within the company later and are required to travel. A travel policy needn’t be long or complex. a number of the simplest travel policies I even have ever seen were only a couple of pages long.
2. Centralized travel internally and externally
Many companies don’t centralize their travel program, and that they pay a price in terms of a loss of expense reduction opportunities and internal efficiencies. Many companies that don’t centralize travel have a fear of requiring travelers to try to to something they’ll not want to try to to , along side the thought that centralizing travel would require hiring a Travel Manager. Both of those could also be legitimate concerns but they are doing not need to be in most cases. By requiring travelers to book centrally, you’re not necessarily causing them to lose flexibility. You’ll centralize travel while still allowing travelers to book on their own, either with a agency of your choice, or online through a provider that you simply have partnered with and believe in. By assigning someone with the responsibility of overseeing travel, you’re getting one point of contact both internally and externally for travel issues. If your company spends but $1 million in aviation, you almost certainly don’t need a full time travel manager. In these cases, travel oversights are often given to the finance department, human resources, or maybe an executive level assistant. Here may be a check out the benefits to be gained by centralizing travel.
When you centralize travel with one agency, you gain during a number of important ways. you’ll have one point of contact for problems while travelers are on the road, and you’ll have one entity to travel to for all of your travel needs. This eliminates the matter of consolidating a travel report from among several sources. By bringing travel together, you’ll gain significantly from economies of scale. If you’ll measure total travel among various divisions or locations, you’ll get more for your money from travel suppliers. this may allow you to realize more from airline soft dollar programs, which suggests more free tickets and upgrades, get a better percentage discount from our preferred airline, and obtain better negotiated rates from your hotel and car contracts. Your fulfillment costs will decrease also , as your agency will often discount their fees for a better overall volume of travel.
3. mixture of online booking and private service
This is an addendum to the previous element, which involves centralizing travel with one agency . this is often important, but in doing so, you would like not require travelers to use a web booking system, and you would like not require travelers to call the agency directly. By offering travelers the choice of doing either, you’re accomplishing several goals. you’ll reduce your fulfillment costs, as online booking is cheaper in terms of a service charge . By giving travelers the choice , you’re giving them a way of control, thereby increasing morale and standing a far better chance of a high adoption rate. Thirdly, you allow open a best practice of using your online booking engine for fewer complex itineraries, and allowing senior executives, frequent travelers, and sophisticated itineraries to be booked directly with a agent which will offer a far better level of service and a better overall travel experience where it’s most warranted.
4. Look under every stone
While the majority of most travel programs revolve round the air budget, there are several other areas one can investigate to seek out savings opportunities. There are a few of more obvious areas to seem , like negotiated hotel rates at your favorite hotels, or hire car discounts with a popular supplier. Often your agency will have already got discounted rates through consortia affiliations and agency car contracts. There also are some less common areas that ought to be investigated. for instance , if ground transportation may be a concern, most suppliers will offer discounted rates and an immediate billing option. Direct billing arrangements with hotels and hire car agencies also are an excellent thanks to increase efficiencies and make the work of the accounting department easier.
5. Leverage hard dollar and soft dollar contracts
Most major airlines today offer hard dollar discounts also as soft dollar incentives in exchange for company loyalty to their product. If your travel program is over $1 million in air spend, you’ll secure a reduction off of rock bottom fares of your carrier of choice reciprocally for a market share commitment. For your secondary carriers, or if your volume is a smaller amount than the minimum required by the airline, you’ll enter in to soft dollar programs for free of charge tickets and free upgrades, also as traveler status enhancements or airport club passes. These programs require little within the way of volume, but they’re not well publicized so you’ll got to search for them or ask Baker Travel or your current agency to point you within the right direction.