Pre-trip approval used to be a rather cumbersome and overbearing process which is why it lost favour in the recent past for forward-thinking travel programmes. The processes and workflows were mostly manual and dependent upon templates sent by email which were not particularly user-friendly for either the traveller or approver.
The manual nature of the workflow created delays in the TMC receiving the required authorisation to travel, which resulted in confusing issues with ticketing deadlines and fare changes. This, coupled with the fact that the majority of corporates provide their employees with corporate payment cards, made pre-trip approval appear old fashioned and non-trusting of employees to make the right decisions.
In the past, a prompt approval process could only effectively cater for a 'yes/no' decision on whether the traveller was authorised to go ahead and book a trip. But realistically what is the point, and where is the sense for a budget holder to say 'yes, you can book a trip to X' without knowing the cost involved– and also being made aware if other fare alternatives were available at the time of booking?
Improvements in pre-trip approval technology now delivers greater opportunities to
- Monitor and influence travellers purchasing behaviour;
- Improve travel policy compliance;
- Enhance budget holder involvement in the travel booking process; and
- Deliver real-time cost information, and viable price alternatives for each trip
It is widely recognised that there has been a strong movement in the application of Lowest Logical Fare travel policies and spot-buying of airfares rather than usage of corporate negotiated airline deals, particularly for short haul travel. The advent of this shift in airfare procurement, in tandem with the technology improvements, is now creating a resurgence in the popularity of focused pre-trip approval as it is now automated, simpler, quicker and more responsive.
Lowest logical fare travel policies obviously encourage acceptance and usage of cheaper, more restrictive airfares. It is a fair argument to say that business travel does require a certain level of flexibility, as of course in the real world, meetings do get changed and cancelled. However, there are different airfare options available for the same trip request with varied levels of restrictions and penalties for changes and cancellation. Particularly in an online booking tool environment, a myriad of options can be presented to the booker, but there can be a reluctance to accept the lowest fare with the most punitive conditions when the traveller is faced with making the buying decision.
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Contemporary automation of pre-trip approval now means that authorisation can be made by the click of a button on a smartphone or by email, meaning that approvers can quickly make purchasing decisions even when they are travelling themselves. Also within the new systems, approval authority can be delegated to a nominated representative, to ensure delays are minimised. Regardless of whether the booking was made online or offline, the same workflow applies – which ensures that traveller/TMC/authoriser are all aware of the status of the request, so that ticketing timelines are honoured. It is true to say that instant ticketing conditions do create a challenge to the workflow, but they can be managed.
This new speed and efficiency means that pre-trip approval can be intelligently deployed to the benefit of today's travel programmes.
Case study
A client wanted to implement a new travel strategy which would deliver cost savings to the company's bottom line. To achieve this a new lowest logical fare travel policy in combination with a new pre-trip approval process was implemented with the objective of changing booking behaviour to accept lower, more restrictive airfares. It is important to note that only 'out of policy' bookings require approval so if the lowest logical fare is accepted by the traveller at the time of booking, then the approval process is not initiated.
The travel policy now includes clear parameters regarding:
- Class of travel
- Time windows (related to searching for cheaper fare options); and
- Connections for long-haul travel
For all relevant trips, three fare quotes are provided within the parameters of the policy (parameters must be mirrored for both online and offline booking). Guidelines have been set as to the range of fares and levels of restrictions to be offered in the three quotes as there is no point or credibility in constantly offering options which are never going to be accepted.
For non-compliant travel reservations, the newly implemented pre-trip approval system automatically sends a message to the nominated authoriser of the airfare option accepted as well as the two declined alternatives. The nominated authoriser can then make an informed decision as to
- Is the traveller authorised to make the trip?
- Is the cost acceptable, and has the best fare option been taken?
The training and communication programme was key to the success of the new travel strategy – which in just the first month of implementation resulted in 75% compliance to the new policy which has delivered the required immediate savings to the bottom line.
For a small financial outlay, focused pre-trip approval can be used as an effective tool in today's travel market conditions to drive compliance to a travel programme's strategic objectives – delivering a significant financial return on investment.