Whether your business is a corporate travel veteran, or whether your business is new to the game, it’s important for CFOs to play an active role in travel management.
But in an industry that changes so quickly, it’s often hard to keep up with the current state of play. Thankfully, there are a few business travel basics that don’t change all too often.Below we outline 3 core values that CFOs can turn to when reviewing their corporate travel programs.
1. The Value of Happy Business Travellers
Travel budgets are often the first target for cost cutting measures, and traveller expectations are almost always placed at the bottom of the priorities list. However, frustrated, uncomfortable and stressed business travellers don’t present well in meetings, pitches and networking events.
Strategic CFOs know that the comfort of their travelling employees directly correlates to how well they perform overseas. CFOs and Travel Managers need to do their best to alleviate the many stresses business travellers face, and remember that positive employees are productive employees.
How can CFOs ensure their travellers stay at the top of their game overseas?
Skift’s Bleisure Report revealed that 78% of business travellers believe bleisure travel (incorporating leisure days into business trips) benefits how they perform during their working engagements. Despite this, just 14% of business incorporated bleisure policies into their travel programs.Encouraging bleisure trips may be a strategic way to improve road warrior satisfaction overseas, but businesses need to ensure they can maintain expense visibility and ensure policy compliance.
2. The Value of Corporate Travel
There are no two ways about it - business travel is expensive. While most CFOs understand that corporate travel offers a significant return on investment (a figure put at anywhere between $10 and $14.99), some CFOs see business travel as a strain on the bottom line.
After all, a survey conducted by J.P Morgan found that travel and expenses is a business’ second biggest operating expense behind payroll.
Research conducted by the Academy of Management, titled ‘Executive Travel Stress: Perils of the Road Warrior’, found that travel budgets are often the first target of cost cuts when company purses become light.
However, an Oxford Economics Report found that a business that abandons its corporate travel program would stand to lose 17% in profits within the first year.So while CFOs may see travel budgets as an easy target for cutting costs, in fact they need to find effective ways to measure return on investment of travel and come up with strategies to improve those returns.
3. The Value of Technology
Just about every aspect of corporate travel can be improved with the right technology. Whether it be utilising streamlined booking tools to secure the best rates, or mobile devices to book on the go, analysing policy performance with data insights tools, or arming travellers with wearable technologies to monitor their health while overseas, technology and travel go hand in hand.
CFOs should ensure their business is using the best technology on the market to get the most out of their travel programs.
To see the potential savings the Locomote corporate travel management platform can offer your business, complete the Travel Calculator by clicking below: