Companies' travel expenses can best be cut by booking air travel at least two weeks ahead, according to Carlson Wagonlit's latest research for its ”Playing by the Rules: Optimising Travel Policy and Compliance” report.
On average companies can save 20% if they fine-tune their policies in five key areas and then make sure employees stick to it.
Advance air booking ” defined as reservations made at least a fortnight before departure ” represents the best opportunity for savings as discounts sometimes exceed 50% of the ticket price.
Prices can be reduced by a quarter by using restricted air fares, even after the cost of changing or cancelling negotiated flexible fares, and consistent use of preferred suppliers delivers lower overall costs than a variety of suppliers used on a ”best price” deal ” companies get around a quarter off flights and between 5%-14% off hotel prices off the former.
Other key areas were switching company policy regarding which class staff fly or which category of hotel they use ” raising the minimum flight duration for using business class, for example ” and sticking to preferred booking channels. Research showed only 40% of companies which have a corporate online booking tool even refer to it in their travel policy, and of those that do only a quarter make its use for point-to-point travel mandatory, and 2% for hotels.
”Many of the best practices observed by CWT are within the reach of all companies,” said CWT travel management senior director Christophe Renard. ”By working closely with their TMC, as well as senior management within their organisation, travel managers can better articulate their travel policy and reinforce compliance.
”This results not only in reduced costs, but enhanced traveller safety and well-being.”
CWT polled 57 travel managers from client companies on travel policy and compliance, and nearly 6,500 travellers and travel arrangers completed questionnaires on policy awareness.