Much has been written recently about the business of travel
management and, specifically, how managing suppliers may not be the best way to
manage costs. When it comes to managing a mature travel programme, for example,
the likelihood is that savings from squeezing suppliers have already been
maximised. Instead, managers are being urged to manage travellers, and this
point was also highlighted in Egencia’s report on ‘The Real Cost of Business
Travel’.
Egencia’s report nudges managers to look at the intangible
and hidden costs of business travel as well as the more classic expenses such
as air travel and accommodation. By managing travellers and providing them with
the right tools to plan, book and track their travel, productivity and other
hidden costs can be reduced and thereby saving companies ‘the real costs of
business travel’. How do you manage travellers? Well, by getting them to comply,
obviously, albeit ‘gently’ suggests Egencia. In fact, they give us a very
useful four-pronged approach to increase compliance:
1 Communicate
– explain to travellers what the company stands to gain by adopting a new
policy
2 Educate
– educate travellers of the benefits to them of adhering to your travel
programme and give them recognition when they do
3 Compete
– encourage inter-departmental competition
4 Offer
(or reward) – offer travellers incentives for the winning department in
addition to bragging rights
In summary, you may have maxed out your supplier savings but
there are still significant savings to be had by managing and reducing your
hidden costs – your productivity costs, for example – and intangible costs,
such as traveller/employee satisfaction. Do this, and you can still see a big
impact on the company bottom line.
This post was written by David Chapple, event director of the Business Travel Show. Egencia is exhibiting at the Business Travel Show, which takes place 4-5 February 2014 in London.
