2011 Cost Avoidance Strategies for Corporate Travel ... - Egencia

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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

by:

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

purchase occurs

policies

• 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