Driving Business ROI From Your Corporate Travel Program

 

A recent study found travel managers in APAC are facing increasing pressure to deliver business ROI from corporate travel. Preposterous or reasonable? What are the options and potential pitfalls? Join us as we uncover the truth.

A recent corporate travel survey by Sabre found that travel managers are facing more pressure to associate travel spend with the bottom line.

The study found that 65 per cent of respondents admit they have been asked to identify cost savings, and this cost-conscious approach is encouraging travel managers to find new ways to minimise spending.

Are business travel cost cuts however the silver bullet to solve all travel expense problems?

Carlo Bezoari, Head of Commercial at FCM Travel Solutions suggests this is something that organisations need to be deliberate carefully rather than settle for snap decisions.

 

“While cost cuts could have a positive impact on the bottom line, it’s critical for companies to consider the bigger picture - the traveller experience.There is simply no point saving a few dollars moving people from business to economy if it impacts a traveller's ability to perform their job well, or increases staff churn.”

 

This seems particularly poignant given the survey findings: Downgrades, shifting reservations from business to economy class, account for close to 40 per cent of bookings.

What’s more, almost one in four have identified a significant increase in their LCC (low cost carrier) share of volume.

At a glance, traveller comfort seems to be the sacrificial lamb in the quest for more cost efficiencies.

Is this an inevitable fact business travellers just need to deal with then?

Not necessarily, according to Carlo. The key to introducing unwelcome changes such as these is good change management. If done well it could minimise or even eliminate any downsides and ensure staff morale and motivation is retained.

 

“The traveller's experience always needs to be evaluated in the context of cost saving measures.Think of different ways to ease in changes. For example, if you decide to limit access to business class, then perhaps allow better hotels to offset the fact that staff are travelling in economy.”

 

While airfares are the obvious red-line item in the travel expense sheet, it is just one, albeit a large, piece of the corporate travel puzzle. 

Is the emphasis on airfares overdone though? Are there other opportunities to save travel spend beyond downgrading business travellers' flight experience?

In FCM, Carlo shares, customers who get the most out of their travel programme follow five ‘Cs’. A methodology he says, that ensures optimal management of a company’s travel programme.:

• Consolidation,
• Customer Satisfaction,
• Cost Management,
• Compliance, and
• Corporate Responsibility

 

“Using the five Cs, there are many things we can look at including analysing travel spend and looking at how supplier and route selection can impact savings without affecting traveller experience. Other things like analysing traveller behaviour and ensuring compliance with policy are important too.

Taking a closer look at these could actually lead to massive savings without the need for radical travel policy changes!

 

Achieving cost savings and maximising returns then, isn't confined to flight and hotel downgrades, but could come simply from looking at travellers' compliance and booking behaviour through every level of the organisation.

Too much work for the travel manager? That's where a good travel management company comes in, Carlo adds. More than just providing a service, clients should expect a well-rounded strategy for achieving returns like better cost returns and motivated staff from their TMC.

 

A strong TMC should be providing quantifiable recommendations to help optimise travel spend, whilst still ensuring that staff have an amazing travel experience.”

 

At FCM, we're not only concerned with helping you source and book the lowest airfares and hotel rates. More importantly, we want to ensure you get maximum Return On Investment from your corporate travel program's spend.

Want to learn more? We'd love to hear from you. Get in touch with us below.