Check Your Travel Policy: Are You Tracking Fees?
The 2011 Corporate Travel Policy Benchmarking and Insight study by the GBTA Foundation and Egencia revealed that many companies’ policies are in dire need of revision. The study looked at more than 650 buyers, primarily in North America. What really caught my eye: About six in 10 said their travel policy is more a guideline than a mandate. What’s more, nearly three-quarters of respondents levy no consequences for policy violations. Last year, a GBTA study found that stricter policy enforcement could save companies $30 billion annually.
Also: Only one in five companies tracks airline ancillary fees (but 41 percent of those who don’t said they will start within the next year). Tracking and tabulating fees should be part of your budgetary activities, especially because it could pay off at the bargaining table. When you are negotiating, keep in mind that this year airlines worldwide pulled in $32.5 billion in fees! No doubt your company contributed to that number in a big way. Try to leverage that along with your annual spend volume to negotiate better discounts and other concessions, such as an increased number of seat upgrades, club passes, elite membership upgrades, waivers/favors, soft dollars, or whatever else the airline suppliers are willing to put on the table.
Kevin Iwamoto tackles many more travel and meeting-related topics at his strategic meetings management blog.
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© 2012 Penton Media Inc.
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