The hidden cost of relaxing policy and embracing rogue

Much has been written about the rise of the rogue traveller this year. The fine balancing between policy enforcement and happy and productive business travellers has been the centre of many a debate since it was first raised (to me, anyway) at the ITM Intelligence Conference back in May (you can read my blog on that here) and, most recently, at the GBTA Europe Conference in Budapest (my blog on that session is here). 

Corporate travel buyers are being warned that managing policy too closely leads to traveller friction, which in turn impacts on the wellbeing, productivity, motivation and loyalty of the traveller. Introducing flexibility, on the other hand, can lead to happier travellers; travellers less likely to ‘go rogue’.

On paper, the traveller turned self booker appears to be a no brainer, saving money for the company thanks to religiously booking within policy price parameters or even under budget because of internal incentives and reward programmes.

But it can’t be all win win for the organisation, surely? There must be some pay back? And perhaps the answer is, yes, of course there is, and that pay back lies in the time it takes for these employers to self book. And therein lies the problem: because this cost isn’t visible it can go largely ignored.

Whether the traveller turned self booker uses a self booking tool, an internally-designed travel portal (a la Google), or simply surfs their favourite leisure portals, they are wasting hours and hours of time online booking their trips; time that could be spent working; time that costs the company money. In fact, a company that has 20 senior execs each taking 20 trips a year and each taking a morning to book each trip is throwing away the equivalent of more than £51,000 worth of billable hours.

So what’s the answer? Well, frustratingly, that seems to be far from decided and still very much up for debate. The Business Travel Show will attempt to throw some light on the issue with a panel session called ‘Policy – how vogue is rogue?’ at the event next February, but I’m sure a lot more will be said about it – for or against – between now and then and I’d be interested to know what you think, so why not join the debate on Twitter @abtn_online or @btshowlondon?

David Chapple is event director for the Business Travel Show, which takes place at Earls Court on 5-6 February 2013. Registration is open at www.businesstravelshow.com.

What corporate buyers want from agents in 2012

I have written a guest comment for today's Travel Mole about what corporate buyers want from agents in 2012. You can read it below and also on the Travel Mole website  http://www.travelmole.com/news_feature.php?news_id=2000094

"In a survey of business travel buyers commissioned by the Business Travel Show for the New Year, cost, the London 2012 Olympics, the economy and travel alternatives were all among their top concerns for 2012; and as we head into another year of economic uncertainty - last week it was reported the UK’s GDP fell by 0.2% and hotel, fuel and ancillary fees are continuing to rise - buyers tell me that now, more than ever, they need their TMCs to keep them informed and continue to suggest new ways they can save money and add value.

1 Cost savings
Buyers are looking to TMCs to help them introduce initiatives to improve compliance this year and, therefore, manage costs. For example, adherence to preferred supplier agreements, not booking outside of policy or introducing, improving or increasing the use of technology (ie with self booking tools (SBTs)). They also want advice on managing the demand for travel and potential travel alternatives such as video and teleconferencing where relevant.

2 The London 2012 Olympics
Buyers are expecting to feel a ripple effect from London staging the Olympics in the form of hotel availability, commuting disruption and reduced demand. Buyers who normally do a lot in London from May to September need TMC help to plan around this. They want TMCs to not only advise them about the impact the Olympics will have on business travel but also on commuter travel, homeworking and general movement of employees.

3 The Economy
As mentioned earlier, the latest figures show the UK economy fell by 0.2 per cent last quarter and analysts and politicians are worried we about to enter a double dip recession. In times of uncertainty like this, the demand for travel is often driven down. Non-savvy organisations adopt the ‘ostrich’ approach and fail to deal with the effects of the economy strategically or with a long-term approach opting instead for short term cost-cutting.

What buyers need from their TMCs in this instance is help and advice on how they can continue travelling - and continue to do business - but more effectively. They need smarter account management.

4 Emissions Trading Scheme
The European Union Emissions Trading Scheme (EU ETS) was the first large emissions trading scheme in the world under which large emitters of carbon dioxide within the EU must monitor their CO2 emissions and annually report them. The scheme was recently extended to the airline industry, with the changes coming into effect this year. This is likely to mean an additional hike in the cost of flights. Buyers will need TMCs to keep them informed and prepared so the increased costs don’t come as a nasty shock.

5 Adding value
Many organisations are integrating business travel and meetings budgets, but business travel buyers don’t necessarily have the resources or the expertise to fulfill the meetings management activity. While they focus on their core competences, they are looking to TMCs to alleviate this additional workload with specialist meetings expertise."

All of the issues above - and more - will be addressed, dissected and debated at the Business Travel Show, which takes place at Earls Court on 7-8 February 2012.

For the full line up of 26 sessions and to register for a free visitor pass to the show, go to www.businesstravelshow.com.