In order to make the most of your corporate travel budget, it is important to plan for leveraging your program for all it can be worth. Telling travelers to pick the best logical airfare is just not enough. Allow me to share the elements that should be considered when planning or evaluating business travel travel agents.
A well written and disseminated travel policy is the first step toward any good travel program, and that i am consistently amazed that a lot of corporations have this kind of outdated and poorly conceived travel policy, should they have one by any means. It is not difficult to get a properly written policy. One can be obtained online very easily. Everything remains is it is edited to reflect corporate culture, and disseminated inside the company so that everyone understands and agrees to adhere to it. Because of this, it is advisable to get everyone sign a copy in the travel policy to ensure that it is read, understood and owned by all company staff. I would recommend that everyone in the company signs a copy of the travel policy, whether or not they travel or otherwise not. They might change positions in the company later and be required to travel. A travel policy do not need to be long or complex. The best travel policies We have experienced were just a few pages long.
Some companies tend not to centralize their travel program, and they also pay a value when it comes to a reduction in expense reduction opportunities and internal efficiencies. Many companies which do not centralize travel have a anxiety about requiring travelers to perform something they could not need to do, together with the concept that centralizing travel will require employing a Travel Manager. Both these might be legitimate concerns nevertheless they do not possess to remain most cases. By requiring travelers to book centrally, you are possibly not causing those to lose flexibility. You may centralize travel while still allowing travelers to book by themselves, either with a travel agency of your choosing, or online via a provider that you may have partnered with and have confidence in. By assigning someone using the responsibility of overseeing travel, you are receiving one particular point of contact both internally and externally for travel issues. Should your company spends under $1 million in air travel, you most likely do not require a whole time travel manager. When this happens, travel oversight might be given to the finance department, human resources, or perhaps an executive level assistant. This is a consider the benefits of be gained by centralizing travel.
When you centralize travel having a single agency, you gain in many important ways. You will find a single reason for contact for problems while travelers are on your way, and you will definitely have one entity to go to 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. Whenever you can measure total travel among various divisions or locations, you may get more for your money from travel suppliers. This will allow you to gain more from airline soft dollar programs, meaning more free tickets and upgrades, get yourself a higher percentage discount from your preferred airline, and acquire better negotiated rates out of your hotel and car contracts. Your fulfillment costs will decrease as well, when your travel agency will frequently discount their fees for any higher overall amount of travel.
It becomes an addendum on the previous element, which necessitates centralizing travel with one travel agency. This is important, but by doing this, you need not require travelers to use an online booking system, so you will not need to require travelers to call the agency directly. By offering travelers the option of doing either, you will be accomplishing several goals. You are going to lessen your fulfillment costs, as online booking costs less with regards to a service fee. Through giving travelers the possibility, you might be offering them a sense of control, thereby increasing morale and standing a better chance of the high adoption rate. Thirdly, you leave open a best practice of making use of your online booking engine cheaper complex itineraries, and allowing senior executives, frequent travelers, and complex itineraries to be booked directly using a local travel agent that could give a more impressive range of service and a better overall travel experience where it can be most warranted.
While the majority of most corporate incentive travel center around air budget, there are various other places one could investigate to get savings opportunities. You can find a few more obvious areas to check, such as negotiated hotel rates on your favorite hotels, or car rental discounts using a favored supplier. Often your travel agency will currently have discounted rates through consortia affiliations and agency car contracts. Additionally, there are some less common areas which should be investigated. As an example, if ground transportation is an issue, most suppliers will offer you discounted rates along with a direct billing option. Direct billing arrangements with hotels and car rental agencies will also be a great way to increase efficiencies making the task in the accounting department easier.
Most major airlines today offer hard dollar discounts in addition to soft dollar incentives in exchange for company loyalty for their product. In case your travel program is over $1 million in air spend, you can secure a discount off the lowest fares of your carrier of choice in exchange for a market share commitment. For the secondary carriers, or if perhaps your volume is lower than the minimum necessary for the airline, you are able to enter into soft dollar programs free of charge tickets and free upgrades, and also 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 have to search for them or ask Baker Travel or maybe your current agency to point you from the right direction.
Hotel volume might be overlooked nevertheless it should not be. Negotiated rates could be had via your travel agency or directly with all the hotel properties of your choosing. Individual hotels near corporate locations will negotiate discounted rates to suit your needs to acquire the absolute minimum room/night commitment. By using a travel agency, you may very well receive discounts of 5% to 50% on 1000s of hotels worldwide.
Rental car contracts are easy to enter into and require little in the form of commitment from the corporation. Select a partner which has airport locations plus a history of excellent customer care. You can save 5-10% very easily and may also negotiate frequent renter membership for your employees. This makes them dexepky51 efficient and enhance morale. Also you can enter straight into direct billing agreements at the same time that may make your jobs of your own travelers and accounting staff far less stressful.
Airlines and hotels will discount your fares and rates if you have groups traveling together or meeting at the single destination from multiple points of origin. These meeting contracts may bring you airfare discounts of 2-10%, and when you have enough travelers on one airline, you might be able to negotiate free of charge tickets to get awarded at contract completion. The minimum requirement is usually 10 travelers coming to the same place concurrently. Some airlines have higher minimums so make sure to ask before a legal contract is generated. Hotels will discount their rates within a similar way having a minimum of 10 room nights. These discounts ranges from 10% to some greater discount based on occupancy rate and seasonal variances.
Well managed group air travel rates require constant monitoring and financial controls to become properly leveraged. Demand timely and customized reports that could be designed to provide you with the important information most. By receiving regular reporting on traveler behavior and provider contract performance, you will be inside a stronger position to fulfill contract obligations, achieve cost reduction objectives and see where opportunities for future savings may lie.
Lastly, any well managed travel program will require into account the comfort and productivity in their travelers. When travelers are comfortable, they are able to focus on their main priorities which help propel your company forward. If travelers are pleased, they perform at a advanced level. Inquire if your travel agency can upgrade traveler status over a preferred airline. Try looking in to purchasing blocks.