Companies know that a corporate travel policy is only effective if travelers are actually following it, so managing traveler behavior is a necessary next step that follows closely behind the supplier negotiations process. In most cases, travelers are trying to do the right thing; they are simply not aware of what is in-policy vs. out-of-policy, nor the value the policy can bring to their organization. Travel buyers know that savings potential lies within this uncertainty. Companies with successful programs and those that continue to achieve savings, have found ways to leverage their corporate travel policy to drive savings through a more focused approach on their travelers. This begins with concise and accurate measurements of missed opportunities, combined with education and an advanced communication strategy where companies can reinforce the messages of compliance and accountability.
It all begins with a strategy to drive travel program engagement The more companies can drive engagement and accountability within their traveler population, the more potential savings there are for corporate travel programs. While company cultures vary, there are several methods companies can use to influence traveler behavior: • Education—make sure your stakeholders are aware of the basics of what defines an efficient travel program and that they are aware of the company’s travel policy, preferred suppliers, etc. Creating “welcome kits” for new employees is an effective way to teach the appropriate behavior and much easier than correcting suboptimal behavior.
• Communication—use a variety of tools such as CWT Program Messenger, CWT To Go, Traveler Scorecards and other approaches, including the use of company signage, educational seminars (in person or online), and clear guidelines posted on the travel page of your corporate intranet site. Format communications in an engaging way that appeals to how your travelers consume information and include not only the policy specifics, but the rationale behind the policy. • Encouragement—introduce recognition and reward systems through gamification tools or a more informal program developed in conjunction with your corporate travel and human resources teams.
Perspective on industry-shaping developmentsCWT ViewPoint:
The more companies can drive engagement and accountability within their traveler population, the more potential savings there are for corporate travel programs.
• Feedback—encourage travelers to provide feedback and suggestions. Let them know you want to hear from them. Your travelers are ‘expert researchers.’ Their feedback can provide key intelligence to benefit your travel program while raising their engagement level.
Challenges impacting traveler behaviorWith all the noise in the industry, from suppliers to media and advertisers, and peers, there are a variety of voices competing for your travelers' attention and ultimately, shaping their purchasing behaviors.
Three of the top reasons CWT sees for non-compliant traveler behavior are:
• Unaware of current corporate travel policy guidelines (in-policy vs. out-of-policy activities)
• Well-intended assumptions that it is the right decision to use non-preferred vendors to save money
• A lack of understanding of how out-of-policy decisions impact vendor agreements and contracts
Additionally, travelers are being drawn away from corporate programs by suppliers who are enticing them with attractive offers from their loyalty programs or to use their vendor apps, which may cause missed opportunities for monitoring behavior. Similarly, your travelers will likely be targeted with offers coming from personal credit card companies and from new industry entrants, such as Uber, Lyft and Airbnb. Data is the catalyst for change Driving change in an organization begins with bringing awareness of financial metrics to the stakeholders, which often include executives, business unit leaders and the finance organization. Accurate data, clearly indicating missed savings opportunities and the cost of non-compliance, grabs attention and demands action. Extending the data drill-down to the traveler level and isolating the source of missed savings is a powerful catalyst for activating wide-scale change. Fact-based financial metrics provide a high level of confidence to help leaders encourage stronger adherence to policy.
In addition to benchmarking, it is also crucial to provide evolution trends to business units so they can compare to each other and potentially compete to improve their performance. Among the areas that CWT clients could measure to determine savings potential include:
Once determined, these metrics can become part of your program dashboard, an example of which is below.
The proof is in the numbers CWT clients engaging their travelers through advanced communication strategies such as Traveler Scorecards and gamification tools are averaging the following savings results:
After implementing any changes, it will be important to measure areas you were looking to improve and review them against the baseline to determine success. Companies can also use booking data to forecast future travel program budgets and establish volume thresholds for supplier contracts. Suppliers monitor compliance to commitments and future negotiations are affected by performance.
Additionally, providing travelers with a personal measurement tool, in the form of a traveler scorecard or customized communications including rankings, can be highly motivating. In some cases, it can be as simple as direct-to-traveler messaging through CWT Program Messenger. To add a new dimension to driving traveler behavior, companies can show travelers how they affect compliance rankings and tap into their desire for friendly competition. Identifying areas for improvementEven travel programs which enjoy high levels of favorable traveler behavior should review current traveler practices to evaluate the opportunity for additional savings. CWT encourages travel buyers to start with a basic assessment. For example, ask:
•What is the biggest area for improvement?
• i.e. hotel, air, advanced booking, and
booking channel (online vs. offline).
•What are the important savings thresholds we
need to achieve?
•What are the corporate directives?
Companies have an opportunity to identify the largest areas of concern and tailor their approach to changing those behaviors by taking the time for a comprehensive discovery phase.
Creating a collaborative environment The importance of traveler behavior goes well beyond ensuring your travelers are following your corporate travel policy. As you develop your process, it is important to remember that your strategies do not always need to be heavy-handed, mandated. Take the time to create positive messaging, remembering that most travelers want to do the right thing. These messages will be seen as a positive motivator and demonstrate your commitment to your travelers. Additionally, collaborating with key stakeholders to develop a deliberate engagement strategy to align with your corporate culture will help ensure program success. New challenges will arise that will continue to try to draw travelers away from your program. Put processes and systems in place today to ensure your travelers are aware of your policy and that the effects of their purchasing decisions are being measured. It will be important for them to know that you want to work with them to create the most effective program possible, while also meeting their needs so they can perform the business your company needs them to do. When travelers understand the rationale behind the company’s travel policy, they are more likely to abide by it. Travel buyers should work to find the balance between keeping travelers accountable for their travel decisions while also remaining open to traveler feedback on the travel policy as a whole.
Interested in learning more about how the CWT Solutions Group can help? Please visit www.cwt-solutions-group.com and contact your CWT representative.
Teaming with key stakeholders to develop a deliberate engagement strategy to align with your corporate culture will help ensure program success.
