ROI secrets for business travel
What is the key to improving ROI in business travel? A number of good practices that bring together new technologies and innovative processes can lead to significant differences in terms of ROI.
Nearly 20% of business travel bookings are made outside of the procedures authorised by travel policies, using channels other than those offered by the company. During their stay, more than 80% of employees make changes outside of authorised practices. These conclusions from the London School of Economics and Political Science, in a study conducted for the Amadeus Group entitled “Managing every mile“, highlight existing habits and the significant room for improvement needed to achieve optimal operation.
However, the efforts required in the area of Travel and Expense are very beneficial. The survey indicates that a company with a travel policy that is more than 80% compliant can save up to 23% on its indirect costs per traveller. The advantage of defining ROI indicators for business travel is an economic one, but also takes into consideration employee satisfaction. A factor that is increasingly taken into account. Two-thirds of executives believe that processing expense claims is a source of frustration for users and concern for management. The lack of good practices during the booking and approval stages results in a worse experience for the traveller and contributes to complicating the ensuing management process.
Building on innovation
Technology is seen as central to the implementation of new practices in Travel and Expense programmes. Approximately 60% of decision-makers plan to change the tool they use within the next few years and want to focus on new technological functionalities related to analysis, spending and reporting.
The opportunities for ROI improvement lie more specifically in the area of more proactive sourcing and procurement management. If technology solutions are to be at the heart of a transformation geared towards the future and greater efficiency, companies should also look beyond the actual cost of travel and focus on the wishes of employees, the booking process, the impact on productivity and their duty to protect. They will therefore be in a position to better describe the travel programmes that are best suited to their travellers.
Alexander Grous, Senior Lecturer in the Department of Media and Communications at the London School of Economics and Political Science, identifies “five key steps that are all reliant on technology: Travel and Expense sourcing strategy, service procurement, traveller assistance and security, expense management, analysis and returns. By applying best practices at each of these stages, companies will ensure optimal travel expense management and maximum efficiency, while enhancing employee effectiveness and satisfaction.