BCD Travel releases Insight on Corporate Travel
Pressure to reduce costs puts focus on compliance for travel and procurement managers
In an effort to reduce costs, travel and procurement managers are focusing on enforcing travel policy – but while they may be driving out costs in some areas, preferred supplier compliance is declining, according to BCD Travel’s 2008 Travel Program Survey.
This year’s survey shows a 23 percentage point increase in companies whose policy enforcement is either “strict” or “moderate to strict,” from 36 percent in 2007 to 59 percent in 2008. But the number of companies enjoying air program compliance levels of greater than 70 percent decreased by eight percentage points from 2007, from 65 percent to 57 percent. Despite aggressive measures to strengthen policy enforcement, they are still struggling, in the face of increasing fares and decreasing capacity, to secure space on preferred carriers.
“Companies are focused on reducing their total cost of travel – but doing so in a way that balances their other top priorities of improving traveler satisfaction and maintaining traveler safety and security,” said Mary Ellen George, general manager of Advito, the independent consulting division of BCD Travel, which provided data analysis and forecasting for the survey and resulting analytical document, Insight on Corporate Travel. “To help support them in this task, they are reducing processing costs through increased usage of online booking tools; they are enhancing policy communication to travelers; and they are enforcing the use of preferred suppliers and the preferred agency.”
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This entry was posted on Thursday, August 14th, 2008 at 3:32 pm and is filed under Business News, Business Travel, Corporate Travel, Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
