To help make the the majority of your corporate travel budget, it is important to plan for leveraging your program for many it can be worth. Telling travelers to decide on the smallest logical airfare is simply not enough. Here are the weather which should be considered when planning or evaluating your travel program.
A properly written and disseminated travel policy is the reasons for anything good travel program, and so i am consistently amazed that so many corporations have this sort of outdated and poorly conceived travel policy, in case they have one in any way. It is really not hard to find a properly written policy. One can be found online with ease. All that remains is it is edited to mirror corporate culture, and disseminated within the company to ensure that everyone understands and agrees to follow it. For that reason, it is a good idea to have everyone sign a copy of your travel policy to ensure that it is read, understood and belonging to all company staff. I suggest that everybody in the company signs a duplicate in the travel policy, if they travel or otherwise. They might change positions inside the company later and be asked to travel. A travel policy need not be long or complex. The best travel policies I have experienced were only a few pages long.
Most companies will not centralize their travel program, and they also pay an amount when it comes to a loss in expense reduction opportunities and internal efficiencies. Many companies which do not centralize travel use a concern with requiring travelers to complete something they could not want to do, in addition to the concept that centralizing travel will require getting a Travel Manager. The two of these can be legitimate concerns but they do not possess to be many instances. By requiring travelers to book centrally, you are possibly not causing these people to lose flexibility. You are able to centralize travel while still allowing travelers to book on their own, either with a travel agency of your choice, or online through a provider that you may have partnered with and get confidence in. By assigning someone with all the responsibility of overseeing travel, you will get just one point of contact both internally and externally for travel issues. If your company spends less than $1 million in air travel, you almost certainly do not require a whole time travel manager. In these cases, travel oversight can be made available to the finance department, human resources, and even travel security. Listed here is a consider the benefits to be gained by centralizing travel.
When you centralize travel having a single agency, you will get in a number of important ways. You should have a single point of contact for problems while travelers are on the streets, and you will probably have one entity to attend for 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. Provided you can measure total travel among various divisions or locations, 42devvqky can get more for the money from travel suppliers. This will assist you to get more from airline soft dollar programs, which implies more free tickets and upgrades, get yourself a higher percentage discount from my preferred airline, and have better negotiated rates from the hotel and car contracts. Your fulfillment costs will decrease at the same time, for your travel agency will frequently discount their fees for the higher overall number of travel.
It is really an addendum to the previous element, which calls for centralizing travel with one travel agency. This is important, but in doing so, you will need not require travelers to make use of a web-based booking system, and also you will not need to require travelers to call the company directly. By providing travelers a choice of doing either, you happen to be accomplishing several goals. You may reduce your fulfillment costs, as online booking costs less with regards to something fee. By providing travelers the choice, you might be giving them a feeling of control, thereby increasing morale and standing a better chance of the high adoption rate. Thirdly, you leave open a best practice of using your web booking engine for less complex itineraries, and allowing senior executives, frequent travelers, and complex itineraries being booked directly having a travel agent that will give a more impressive range of service as well as a better overall travel experience where it is actually most warranted.
While the bulk of most travel programs revolve around the air budget, there are various other areas one can investigate to locate savings opportunities. You can find a few more obvious areas to look, like negotiated hotel rates in your favorite hotels, or car rental discounts by using a favored supplier. Often your travel agency will currently have discounted rates through consortia affiliations and agency car contracts. There are also some less common areas that should be investigated. For example, if ground transportation is an issue, most suppliers will offer discounted rates as well as a direct billing option. Direct billing arrangements with hotels and car rental agencies may also be a great way to increase efficiencies to make the job of your accounting department easier.
Most major airlines today offer hard dollar discounts and also soft dollar incentives in return for company loyalty on their product. Should 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 a market share commitment. For your personal secondary carriers, or if perhaps your volume is under the minimum required by the airline, you can enter in to soft dollar programs for free tickets and free upgrades, as well as traveler status enhancements or airport club passes. These programs require little when it comes to volume, but they are not well publicized so you may need to hunt for them or ask Baker Travel or perhaps your current agency to point you inside the right direction.
Hotel volume might be overlooked nevertheless it must not be. Negotiated rates might be had using your travel agency or directly using the hotel properties of your liking. Individual hotels near corporate locations will negotiate discounted rates for you personally to acquire a minimum room/night commitment. By using a travel agency, you will likely receive discounts of 5% to 50% on a large number of hotels worldwide.
Rental car contracts are simple to enter into and require little in the way of commitment from your corporation. Choose a partner which includes airport locations as well as a track record of excellent customer care. It will save you 5-10% quickly and will also negotiate frequent renter membership for all your employees. This may cause them more potent and enhance morale. You can also enter straight into direct billing agreements concurrently that can create the jobs of your respective travelers and accounting staff much less stressful.
Airlines and hotels will discount your fares and rates in case you have groups traveling together or meeting at a single destination from multiple points of origin. These meeting contracts may bring you airfare discounts of 2-10%, and for those who have enough travelers on a single airline, you just might negotiate for free tickets to get awarded at contract completion. The minimum requirement is normally 10 travelers coming to the same place as well. Some airlines have higher minimums so be sure you ask before a binding agreement is generated. Hotels will discount their rates in a similar way with a minimum of 10 room nights. These discounts may range from 10% to your much higher discount based on occupancy rate and seasonal variances.
Well managed travel programs require constant monitoring and financial controls to be properly leveraged. Demand timely and customized reports that may be created to provide you with the important information most. By receiving regular reporting on traveler behavior and provider contract performance, you will end up in a stronger position to meet contract obligations, achieve cost reduction objectives to see where opportunities for future savings may lie.
Lastly, any well managed travel program can take directly into account enhanced comfort and productivity of the travelers. When travelers are comfy, they may focus on their main priorities that help propel your small business forward. If travelers are content, they perform with a more impressive range. Inquire if your travel agency can upgrade traveler status over a preferred airline. Try looking in to buying blocks of airport club passes to allow them to be utilized strategically during long and complex itineraries. There are several strategies to reward travelers for your difficult and quite often grueling chore of travel. Most of these rewards generate feelings of loyalty and increased productivity and efficiency.