By Michael Silvey, Senior Director, Demand and Behavior Management, Advito
Most travel managers will agree that they’re always looking for new ways to drive value out of their company’s managed travel program. Here at Advito, we’ve been busy uncovering new ways to save. And we’re excited to share that we’ve discovered a number of savings opportunities.
What’s more, these breakthrough techniques have been proven over the last 12 to 18 months. It’s clear to us that every travel program can save, and that there’s an opportunity for each one to achieve a positive ROI in a relatively short amount of time. Here’s how:
Our first savings opportunity is understanding why your employees travel. Companies can spend anywhere from 25% to, believe it or not, 75% of their travel spend on internal trips. If some of this internal travel is replaced by virtual collaboration tools, companies can save anywhere from 4% to 10% of their total travel budget. It’s likely that your company has already made investments in virtual technologies. Our Total Collaboration Management services can help you put them to better use.
Traveler Behavior Management
The second savings opportunity is implementing traveler incentive programs where employees can keep a portion of the money they save on business trips. Research has shown that companies offering such policies see an 8% to 12% reduction in air and hotel spend. This is the largest opportunity for savings that is readily available to companies today.
Category Spend Management
Our final savings opportunity comes through air and hotel shopping services and through Dynamic Performance Management (DPM). We estimate $100K net savings for every 50,000 agency hotel bookings for hotel shopping services, and 2% of agency air spend savings for air shopping services. DPM savings average about 1.5% of a client’s agency air and hotel spend. These figures are based on our own research and experience with clients.
Now it’s your turn to save. Instantly see how much with our breakthrough savings calculator. It removes some of the guesswork involved in how each of the above savings opportunities could impact your program. All you have to do is answer a few questions about your company’s current program bookings and spend.
Want to know more? Listen to a recording of one of our breakthrough savings webinars where I talked in-depth about this new savings framework to help you identify your greatest areas of opportunity and to help you take the next steps for getting the fastest returns.