There are a wide range of booking options available to business travelers, many of which encourage them to book outside their organization’s established travel program. This can present a challenge for travel managers. When employees don’t comply with their company’s travel policy, they can diminish savings potential, damage contractual relationships with suppliers, and even cause duty of care concerns.
Let’s explore the top five reasons why travelers may be tempted to book out-of-policy, as well as steps travel managers can take to increase program compliance.
1. Perceived Cost Savings
Employees may book out-of-policy if they think they see a cheaper rate. While the intention of saving the organization money is well-meaning, face value fares don’t always show travelers the whole story.
Through their travel management company (TMC), travel managers have access to strong relationships with suppliers and negotiated rates that cater to the business traveler. Often, this may include benefits not available with regular tickets, such as no-change fees, flexible fares, and unused tickets or credits which can be applied to the purchase. Booking out-of-policy also hinders the travel manager’s ability to negotiate better rates with preferred suppliers, a vital aspect of the B2B relationship.
Those who manage travel can remind employees of the many advantages of compliance. The organization’s travel policy takes a wide array of factors into consideration, and is designed to remove the burden of cost-containment off the traveler. This in turn allows employers to redirect their energies toward the reasons why they travel for business, including fueling company growth and meeting key goals.
2. Third-Party Bookings
If employees venture out-of-policy through an online deal, it presents risk and more room for mishaps. Limited support is available if something goes wrong with an out-of-policy reservation, and in most situations, a travel manager does not have the leverage to help with a cancelled flight or an overbooked hotel.
Travelers can also be misled by third-party promotions with ever-changing content and fares, and “what you see is what you get” may not actually be the case when employees book outside of policy. Those who manage travel can educate their team on compliance by highlighting the benefits within a company newsletter or through regular email updates.
3. Convenience
Most travelers want to stay close to event locations and fear that staying too far away could result in late arrivals and missed connections. However, an out-of-policy hotel room might be in a less ideal area, or a discounted airfare may not offer flexible options in the event of cancellation or delay. To help travel programs stay on track and promote a safe travel experience, it is essential to keep policies updated and employees informed.
Another way to highlight the convenience of booking within policy is to incentivize the team toward compliance. Many companies offer perks such as gift certificates to travelers who book in policy. Additionally, some organizations even utilize gamification features like badges and leaderboards for point reward systems. Travel managers can also provide a flexible upper limit on hotel accommodations to meet traveler and company goals.
4. Bleisure Travel
Business travel has been redefined thanks in part to the continued growth of bleisure trips, and employees may even wish to stay with family or friends before, during, or after traveling for work. This can make it more difficult for the company to reach travelers in the event of a crisis. To mitigate this risk, establish a database of emergency contact information to help stay in communication with team members who are on the road.
As an additional compliance incentive, consider offering extra PTO days at the end of a business trip to travelers who book through the company’s preferred suppliers. This not only keeps supplier relationships strong, but it also rewards team members for adhering to policy.
5. Personal Loyalty Programs
The desire to leverage a personal loyalty program membership might entice an employee to book out-of-policy. Managers can foster compliance by encouraging travelers to join loyalty programs with policy-compliant suppliers and rewarding them for signing up. This is an effortless way for employees to earn miles, hotel stays, and rental car points without out-of-pocket expenses – a major benefit of booking through approved suppliers.
A Trusted Partner Can Help Lift the Burden
Out-of-policy bookings can reduce savings potential, negatively impact duty of care, and create additional work for travel managers whose plates are already full. Evaluating programs, updating policies, and encouraging compliance can be daunting tasks, but leaning on a trusted TMC can help lighten the load.
At Direct Travel, we provide our clients with best-in-class service and technology designed to simplify travel management. To learn more about how we can help you encourage your travelers to book within policy, reach out to our team of industry experts.
