Because business travel expenses nostril upward, companies are recognizing that better cost-management techniques can make a big difference
US. corporate travel expenses rocketed to more than $143 billion in 1994, according to North american Express’ most recent study on business travel management. Private-sector employers spend an estimated $2, 484 every employee on travel and entertainment, a 17 percent increase over the previous four years. seguro viagem
Corporate T&E costs, now the third-largest controllable expense behind sales and data-processing costs, are under new scrutiny. Organizations are realizing that even a savings of just one percent or 2 percent can translate into millions of dollars included in their bottom line.
Personal savings of this order are sure to get management’s attention, which is a necessity for this manner of job. Involvement commences with understanding and evaluating the components of T&E management in order to control and monitor it more effectively.
Hands-on management includes determining responsibility for travel management, implementing a quality-measurement system for travel services used, and writing and releasing a formal travel coverage. Only 64 percent of U. S. corporations have travel policies.
In spite of elderly management’s support, the trail to savings is rocky-only one in three companies has successfully instituted an inner program that will help cut travel expenses, and the myriad facets of travel are so overwhelming, normally don’t know where to start. “The industry of travel is based on information, ” says Steven R. Schoen, founder and CEO of The Global Group Inc. “Until such time as a traveler actually sets foot on the plane, they’ve [only] been purchasing information. ”
In that case, information technology seems a practical destination to hammer out those elusive, but highly desired, savings. “Technological innovations in the business travel industry are allowing organizations to realize the potential of automation to regulate and reduce indirect [travel] costs, ” says Roger H. Ballou, president of the Travel Services Group USA of American Exhibit. “In addition, many companies are embarking on quality programs which include superior process improvement and reengineering attempts designed to substantially improve T&E management processes and reduce indirect costs. inches
As companies look to technology to make potential savings a reality, they can get very creative about the techniques they use.
The Great Leveler
Central reservation systems were long the exclusive domain of travel agents and other industry professionals. But everything changed in November 1992 when a Department of Transportation ruling allowed the general public usage of systems such as Apollo and SABRE. Travel-management software, such as TripPower and TravelNet, immediately sprang up, providing corporations insight into where their T&E dollars are being spent.
The software tracks spending trends by interfacing with the businesses database and providing gain access to to centralized reservation systems that provide immediate booking information to airlines, hotels and car rental organizations. These programs also allow users to generate advanced travel reports on cost savings with details on where discounts were obtained, hotel and car consumption and patterns of travel between cities. Actual data gives corporations added leveraging when negotiating discounts with travel suppliers.