Because business travel expenses nostril upward, companies are knowing 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 review on business travel management. Private-sector employers spend an estimated $2, 484 every employee on travel and entertainment, a 17 per cent increase over the previous four years. urlaub in daenemark
Corporate T&E costs, now the third-largest controllable expense behind sales and data-processing costs, are under new scrutiny. Businesses are realizing that even a savings of just one per cent or 2 pct can translate into millions of dollars included with their bottom line.
Personal savings of this order are sure to get management’s attention, which is a necessity for this sort of task. 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 circulating an official travel policy. Simply 64 % of Circumstance. S. corporations have travel policies.
In spite of senior management’s support, the street to cost savings is rocky-only one in three companies has efficiently instituted an internal program that will help minimize travel expenses, and the myriad facets of travel are so overwhelming, additional no longer know where to start. “The industry of travel is based on information, ” states Steven L. Schoen, founder and CEO of The Global Group Inc. “Until such time as a passenger actually sets foot on the plane, they’ve [only] been purchasing information. ”
Well, information technology seems a viable location to hammer out those incredibly elusive, but highly sought-after, personal savings. “Technological innovations in the business travel industry are allowing companies to realize the potential of robotisation to regulate and reduce roundabout [travel] costs, ” claims Roger They would. Ballou, president of the Travel Services Group UNITED STATES of American Express. “In addition, many companies are embarking on quality programs which include complex process improvement and reengineering efforts designed to substantially improve T&E management processes and reduce indirect costs. inches
Because companies look to technology to make potential cost savings a reality, they can get very creative about the strategy they employ.
The Great Leveler
Centralized booking systems were long the exclusive domain of travel agents and other industry professionals. But everything transformed in November 1992 when a Department of Transport ruling allowed the basic public usage of systems such as Apollo and SABRE. Travel-management software, such as TripPower and TravelNet, immediately sprang up, providing organizations insight into where their T&E dollars are being spent.
The software monitors spending trends by interfacing with the corporation’s databases and providing access to centralized reservation systems that provide immediate reservation information to airlines, hotels and car rental agencies. These kinds of programs also allow users to generate computerized travel reports on cost cost savings with details on where discounts were obtained, hotel and car consumption and patterns of travel between cities. Actual data offers corporations added leverage when negotiating discounts with travel suppliers.
“When you own the information, you no longer have to return to rectangular one whenever you may change agencies, ” claims Margaret Savovie Stephens, travel supervisor for biotech giant Chiron Corp.