At most global organizations, travel management plays a
significant financial role. Since travel is typically a corporation's
second or third largest controllable expense, having
experienced travel management professionals manage
travel-related services provides measurable benefits.
Monitoring and analyzing travel expenditures is
essential for realizing cost control.
Business travel is on the upswing, and so are travel costs. According
to the National Business Travel Association's (NBTA) 2006 Business
Travel Overview and Cost Forecast, domestic airfares are expected
to rise six percent this year, hotel prices are projected to jump nine
percent, and car rental prices are predicted to climb five percent. "These cost increases, along with growth in the number of travelers
and trips per year, puts the spotlight firmly on travel procurement,"
said NBTA president and CEO Suzanne Fletcher.
As business travel worldwide continues to enjoy solid growth, traveling executives are enjoying even greater comfort, security and flexibility. Airlines, airport operators, hotels and other travel suppliers are investing heavily to enhance their products and services in order to help ease the strain of frequent travel.
These days, every provider of travel services, from hotels to airlines to car rental companies, is focused on providing the most progressive and technologically advanced services to its clientele.
Within days of Hurricane Katrina, executives at several travel loyalty programs like United Mileage Plus and American Airlines AAdvantage among others,had set up ways for program members to donate their points to the relief effort.
In mid-August, 4,500 travel managers, purchasing professionals and representatives from 400 supplier companies will converge in San Diego at the National Business Travel Association (NBTA) Convention and Trade Show. The event, the 37th for the organiza-tion, has grown in both size and stature in direct relation to corporate spend: T&E is now the number two cost center for most corporations, according to multiple industry studies.
The smaller the company, the more critical it is to keep a tight rein on costs. Yet small businesses typically don't have travel managers to oversee travel spending, nor do they have the negotiating clout of big corporations that put thousands of "heads in beds" in exchange for discounts and other perks.
As business travel worldwide enjoys a long-awaited turnaround, airlines, hotels and other travel suppliers are focusing their attentions on the ever-changing demands of the corporate traveler.
Now more than ever, consumer loyalty pays. New and/or improved frequency programs have made it easier than ever to accrue points from travel - and points for travel.
At most companies, large and small, business travel is such a significant part of corporate operations that T&E can cost as much as IT or payroll. To better manage travel costs, companies are implementing a number of best practices, collectively known as travel management.
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