There are numerous benefits of using a travel management company (TMC) and savings is the top advantage. A key component of a managed travel program is unused ticket recovery. Approximately 10% of a company’s business travel airline bookings are refunded or exchanged due to a change of plans. On average, 10% of a corporation’s airline reservations for business travel are left unused.
In unmanaged travel programs, unused tickets are nearly impossible to track and reuse. Relying on business travelers to keep Travel Managers apprised of unused tickets is tricky. In addition, Travel Managers can only track what is reported.
Corporations that track and reapply unused tickets typically save between 5-7% on travel spend. A crucial step in attaining corporate travel program savings is to partner with a TMC that provides automated unused ticket tracking and reporting. If the tool is automated, it will apply unused tickets toward new online or offline reservations. To monitor your travel program spend and savings, comprehensive reporting should be accessible for all unused and reused tickets, as well as outstanding credits for any pending trips.
Besides savings, there are other advantages to unused airline ticket management. Corporate travel programs can benefit from simplified processes and enriched reporting that can steer many program enhancements including:
- Improved productivity. Automated tools enhance accuracy and create proficiencies for the unused ticket management process, which allows travel resources to be reallocated.
- Increased compliance. Unused ticket availability can be promoted via the online booking tool and simultaneously encourage preferred supplier use.
- Enhanced negotiations. Tracking unused tickets provides visibility into data, allowing corporations to improve the management of unused tickets with individual airlines.
Is a managed travel program the best move for your company or do you need a new solution to make a better impact?
For additional best practices to corporate travel program cost savings, click the link below to download our white paper on Implementing a Managed Travel Program.Implementing a Managed Travel Program