Shortly after the 2008 global economic crisis, most travel budgets were slashed. However, as spend is back on the increase, we look at 5 lessons learned since 2008…
- The importance of smart travel management
Instead of travel avoidance companies are looking at cost avoidance, this could be two trips rolled into one, or turning a two-day trip with an overnight stay into a simple day trip.
- Profitability and travel spend are correlated
Travel is both a bottom-line cost and an investment to drive revenues
- Increase in stress levels can impact profitability
Tired travellers, dealing with crashed computers, poor communications, or questionable support are at a disadvantage to their competition
- An understanding of what type of travel to cut
Administrative travel (to handle internal corporate business) generates no profit, yet can account for as much as 60 percent of a firm’s travel costs. Whereas revenue-producing travel (sales and service calls) is the first direct link in the corporate cash chain.
- The impact of emerging economies
Many of the emerging economies identified as offering growth potential for the UK are in Africa, Asia and South America, and require travel to forge new relationships and make commitments to understanding new markets and sectors.
Extracted from the feature by Martin Ferguson - Travel's bottom line.