Travel Policy Compliance Advantages: Savings and Safety

Corporations that mandate travel program compliance have achieved strong outcomes for years. Auxiliary fees, market modifications, and the requirement to push increased compliance have encouraged corporations to examine travel policies. A majority of companies should be reconsidering their travel policies annually. This process should not be delayed until a crisis occurs or when the travel program savings is diminishing. Some of the common revisions to travel polices have included encouraging efficiencies via technology; removing ambiguity; and incorporating crisis management procedures.

As market conditions are modified, corporate traveler compliance has become especially significant in order to uphold travel expenditures. Redesigning policies and enhancing traveler compliance through a travel management company (TMC) supplied online booking tool, companies can save an average of 20% on spend. Non-compliance amid travelers can cause considerable ‘missed savings’ via non-compliance bookings that on an annual basis, can drastically weaken possible savings.

Regarding enhancing traveler compliance, it is essential for companies to be informed of the aspects of their policy that are producing the greatest benefit for traveler performance. Though the reasons vary by corporation, there are some frequent policy aspects that can be utilized to determine how compliance influences travel spend including:

  • Purchasing via approved sources. This should include the selected TMC and online booking tool, as well as the expense tool. This method can dynamically enhance compliance by expanding the examination, track, assessment, and liability that occurs from the knowledge of using one vendor to manage the travel program.
  • Preferred suppliers. Suitably training travelers on obligations when booking via preferred vendors will allow an increased possibility of switching negotiated discounts and preferred pricing into real savings.
  • Limited airfares. A policy should have well-defined suggestions or a mandate on restricted airfares. When travelers have a set timeframe that will not be altered, endorse utilizing restricted fares.
  • Advance bookings. Encouraging travelers to book the furthest ahead of the departure date as possible will yield considerable savings.
  • Travel class. Companies must have obvious policies for travel class, group, and preferred vendors if traveler preferences are unobtainable or a problem postpones the approval procedure.
  • Additional key openings to focus on in order to reinforce a managed program travel, include:
  • Mobile technology can be utilized to ease communication and provide assistance, as well as notices on travel-related benefits.
  • Crisis management procedures must be included in a travel policy to maintain duty of care , which should provide direction on trip preparation, while traveling and post-trip.
  • Booking the lowest possible fares should be incorporated in the policy and communicated to travelers to ensure negotiated discounts are maintained.
  • Requiring hotel bookings at the same time as an air reservations can assist with travel policy leakage and maintain traveler safety during a crisis.

However, a company should not presume that travelers would automatically comply with the policy. Corporations must be regularly influencing and conveying the policy to travelers, as well as requesting assistance from internal departments in human resources, IT, and legal. There are numerous approaches to engage travelers and drive corporate travel policy compliance, which vary from traveler training, incentive-based rewards for adherence, and reporting that recognizes potential savings. Based on our experience, Acendas created the best practices to traveler engagement and policy compliance. For more information, click the link below to download our white paper on the 8 Strategies to Drive Travel Policy Compliance.

Strategies to Drive Travel Policy Compliance

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