A study evaluating travel management trends and policies has been released by The NBTA Foundation, the research arm of the National Business Travel Association, and Egencia, the corporate travel arm of Expedia, Inc.
The study, Corporate Travel Policy: Benchmarking and Insight, shows how companies could significantly reduce travel costs by enforcing travel policies.
67 percent of companies interviewed in the survey stated there are few or no consequences for travel policy violations, with sixty-two percent of respondents saying travel policy is more a guideline than a rule.
Other key practices to achieve significant annual travel savings identified by the study include:
- Requiring Non-Refundable Tickets
The study found that non-refundable tickets average 49 percent less expensive than refundable tickets on some U.S. domestic routes, and 56 percent less expensive on some international routes.
- Providing Guidance on Premium-Class Travel
The premium charged by airlines to upgrade to first class in the U.S. and business class internationally averaged 223%, or $3,327 more than economy class on a selection of trips sampled between U.S. and international destinations. Limiting premium-class travel is an effective way to control costs, and many companies have put this into practice over the last two years.
- Defining a ‘Lowest Logical Fare’ (LLF) requiring travelers to use departure windows and accept reasonable connections.
- Using preferred suppliers, at least where they offer the lowest fares.
- Working aggressively to increase the average time before travel that airline tickets are purchased.
The report Corporate Travel Policy: Benchmarking and Insight Study is available here.
