The True Cost Of Poorly Managed Business Travel
In a digitally consumed world, the ever growing need to form genuine relationships through face-to-face interactions has never been more important.
As a result, companies have seen a rise in business travel as a way to create those in person relationships with clients and partners alike. Business travel is important. But that is not just our opinion, today 94% of employees agree that well-managed business travel is key to business success – from winning new customers to making sure existing ones are happy.
Despite the clear level of importance, it’s becoming clear that the tools and processes companies have used in the past to book and manage travel are costing them big time.
Travel is typically the second largest expense for a company, behind only payroll. Can you imagine not having a payroll software to track the money going out in the form of paychecks every other week?
But just how much time is this costing your team?
The team here at Lola.com decided to go out and investigate just that. We surveyed 1,333 travelers and travel managers to understand exactly how much time and money they are spending during the research, booking, and management part of their trip.
The survey made one thing perfectly clear: Unmanaged business travel is costing teams a lot of time and money.
How much time is being wasted?
Managing travel is a tough gig. Not only do you need to coordinate with the corporate traveler on their preferences when they are in the office, but you need to be responsible for making sure their trip goes smoothly when they are hundreds of miles away from you. Talk about a little bit of pressure.
With all of this responsibility you would think that companies have fantastic tools and processes to manage this role. However, out of the 619 travel managers we spoke with, 67% report that their company wastes time and see lower productivity because of poorly organized travel programs.
Furthermore, when quantifying what that wasted time looks like in hours, we found that travel managers are wasting 7 hours every single week that could be put to better use with the right process and tools in place.
How much is this costing you?
It’s tough to quantify the true impact that unmanaged travel can have on your business.
But after doing the math, we think we got pretty darn close.
The average travel manager earns approximately $110,000 a year. When you add up all of the time spent handling administrative tasks to help employees manage their travel, it comes out costing your company $27,528 annually.
But it doesn’t have to be that much though. In fact, 58% of travel managers agree the process their organization uses is inefficient. Furthermore, 87% of travel managers report that not having a single tool for booking and managing travel arrangements for another person is leading to wasted time and therefore wasted money.
This over spending isn’t simply a result of the salary costs of travel managers. This lack of process results in overspending and poor financial diligence at an organizational level that hits hard on the bottom line. Out of the 619 travel managers we spoke with, 66% of them report that their companies go over on their travel budget.
What can you do about it?
The common theme throughout the travel managers we surveyed was that the work being done can be done a lot more efficiently with the right tools and processes in place.
Thankfully, Lola can help with that.
When booking for travel, process and guidelines are an afterthought as admins can ‘set and forget’ a policy that influences flight and hotel searches for their corporate travelers.
And with Lola, you’re cutting down on the time it takes to book travel, and saving money as a result. You can even see how some of our customers have changed their booking time from 3 days to 10 minutes.
All in all, travel is important. There's a reason it’s the number 2 line item at most companies. Regaining control over how you spend and manage it can have an immediate result back on your bottom line.
How does your corporate travel policy stack up?
Posted byConnor Gross