Fast Fact The top three ways travel
2011 Cost Avoidance Strategies for Corporate Travel Managers
managers drive policy
Egencia predicts that many suppliers will implement price increases in 20111
compliance to their travelers
coinciding with the increase in travel demand based on improving market
is through: • Traveler Education/Policy Communication • Policy Enforcement
conditions. Because air and hotel prices are expected to be slightly up in 2011, it’s now more important than ever to focus on cost avoidance strategies to control corporate travel spend.
• Approval Process(es) Source: 2011 Egencia Cost Avoidance Survey of North American (Canada, U.S.) Travel Managers
The following paper offers several tips and strategies that managers can use to circumvent and protect against the growing corporate travel costs related to air and hotel.
Review and Enforce Your Corporate Travel Policy • Establish and enforce a comprehensive corporate travel policy – the heart of any successful corporate travel management program. According to a recent joint Egencia/NBTA Foundation study2, a carefully conceived and consistently enforced corporate travel policy allowed companies to reduce annual travel spend by at least 45% or more. • Designate traveler groups3 and establish specific policies based on the responsibilities, roles or functions of a designated team. For example, different business units may have access to specific hotel tiers – mid-level hotels for employees and premium properties for billable travel and/or travel with client executives.
1 2011 Global Corporate Travel Forecast and Negotiability Index, Egencia, September 2010. 2 Corporate Travel Policy: Benchmarking and Insight, Egencia and National Business Traveler Association (NBTA) Foundation, August 2010. 3 TMC’s such as Egencia allow the placement of specific travelers who adhere to the same policy into a group on the site.
2011 Cost Avoidance Strategies | February 2011 For more information, call 1.866.328.0110 | www.Egencia.com
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Fast Fact To promote spend accountability within their company: • 49% of North American travel managers cited the establishment of pre-trip approval systems • 40% cited the identification and follow-up of rogue travelers • 34% cited regular travel spend updates to company leaders Source: 2011 Egencia Cost Avoidance Survey of North American (Canada, U.S.) Travel Managers
• Make it easy for employees to identify in-
• Proactively communicate to and educate
policy travel options at the time of purchase
all travelers on the importance of following
corporate travel policies:
• Highlighting the best in-policy travel
• Executive support – gain endorsement
options available • Displaying alternative in-policy options when out-of-policy selections are made • Requiring employee justification for outof-policy purchases • Providing email notification to the travel
from the top and have them communicate the benefits of policy compliance • Hold a ‘travel day’ seminar • Ask each department to manage a specific and accountable travel budget • Support them with detailed reports to
or employee’s manager if an out-of-policy
help them manage costs and stay within
• Identify and follow up on rogue travelers;
• Make the company policy easily
provide email notification to the travel
accessible online or on an internal intranet