Millennials often shun the concept of a centralized managed travel
system. They have come to learn that they know a lot more about technology than
many of their more senior associates managing line items like this and they
think that simply by technology access they can do it better. Most claim they
are doing it to save money but more often than not proof of that result is not always available to those who hope to keep an eye on this significant line
item. I would also mention that for years travelers have claimed they could do
it better themselves even when they had to call multiple airlines. In every
analysis I have been involved in the results didn’t prove these travelers right
because many had their own idea of what the best value was (many times that
perception involved their preferred suppliers and not the company’s). Do not get
me wrong, their intent was not malicious but they many times end up feeling
complacent with going to their go to suppliers and they did not always consider
all the options in an unbiased way. This has been my experience, anyway. There
are six ways to evaluate and assess these rogue claims to determine the CBA of
this behavior.
1.
Benchmark. Compare the rogue average airline
ticket, hotel, and car spend over the course of the year to those that are
complying. There are ways to capture rogue and complaint traveler data these
data via expense reports, card data and more.
2.
Bias. Run a report of spend by traveler and
look for supplier consistencies. Are they always on American? Does it seem
their hotel selection complies with policy?
3.
Policy compliance. Look at how you define value in
your travel policy and what travelers should select in your policy to determine
if even when they book outside your system they are making good selections.
4.
Cancellation cost. Check to see how many trips
these travelers cancel and if they are using up their unused non refundable
tickets or if they are incurring hotel or car cancellation charges at rates
over and above the others.
5.
Deals.
Asses the volume of spend you are investing in different suppliers and ensure
you couldn’t be securing a discount or benefit from these suppliers as a
company by managing spend within your system. If you have deals like this you
must consider what you may lose by not having travelers use these deals.
6.
Compliance/Legal.
When people go rogue how do you know where they are and if they get hurt or
make the wrong buying decisions would the law be by your side. A chat with you
legal team may help clarify legal obligations and even business plan compliance
obligations.
With these few consideration you can put a number on the cost
benefit analysis of managed versus unmanaged travel and make the right
decisions. In this life we all have to comply with many sensible rules for the
greater good- taxes, health care requirements, traffic laws, workplace
obligations, etc. Not everything can go rogue and in my experience and in most
instances, T&E is not a place to go rogue and not only because of trip. It
is not just about booking trips and it is also about managing travel – the line
item.
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