Corporate travel policy compliance is at an all time low. In fact, many sources report compliance at an all-time low, in the range of 55 to 60%.
The reason?
For starters, the increasing use of mobile apps and browsing, combined with younger business travelers are have a different ideas about convenience and maintaining a work-life balance rather than strict compliance with travel policy.
Travel and your bottom line
Today travel managers are working to control business travel spending by focusing their efforts on two major line items where they can get the biggest return: airfare and hotels. In fact, there are 3 areas that can have a significant impact on a company’s travel budget:
- enforcing a policy of advance booking
- use of the lowest logical air fares possible
- using preferred hotels
On the other hand, chauffeured ground transportation typically only accounts for about 2 to 5% of an overall travel budget, according to the Business Travel Association. With that in mind, any cost savings from enforcing a preferred provider choice can sometimes be minimal. What’s more, policy enforcement may be limited by eligibility and location.
So what does this mean in concrete terms?
Getting a chauffeured ride to the airport or a client meeting is hardly “luxury” line item expense.
Think of it this way, getting to or from the airport in as quick, productive and stress-free manner as possible provides an upside for your executives in light of the actual cost of the service. Which is why many companies in the Tri-state area expand their acceptance of chauffeured ground transportation as a reasonable option for business travelers.
Cost, compliance and safety
Additionally, quality loyalty programs, such as our Teddy’s Platinum Rewards, add value for their road warriors.
In addition, our integrated, user-friendly travel monitoring and expense management systems make it easy for companies to track travelers’ whereabouts, even if they are out-of-network, and for travelers to produce timely receipts for their expense reports.
For travel managers, auditing airfare and hotel rates which account for the bulk of their business travel spend is absorbing an increasing amount of their time. Constant structural changes among suppliers during the contract period present an ongoing challenge, as fare adjustments, the introduction of new service classes, rates with conditions, changes in capacity, and the handling of ancillary fees impact availability and expenses.
Where negotiations used to be concentrated in a 3-month period, now they are year-round. As well, some companies are forgoing the RFP process altogether and handling negotiations with suppliers on an ongoing basis.
Keeping a lid on travel budgets and ensuring employee safety are the primary drivers for corporate travel policies.
When the delivery of services such as Teddy’s chauffeured ground transportation meets those primary needs, travel managers have been known to relax compliance enforcement, especially as they concentrate on bigger dollar returns from airfares and hotel bookings.
And savvy travel managers know that a quality travel experience helps their company retain good employees, so it comes as no surprise that clients who take their preference for Teddy’s with them to a new company have historically been allowed to continue using our award-winning service.
Some recent comments…
- “Been a pleasure and honor to use Teddy’s for the past four years. Everyone is always so attentive, polite and concerned.”
- “Very professional driver, up to date on traffic problems and able to bypass them. Arrived nice and early at destination allowing us plenty of time to settle in.”
- “Our entire experience from booking to having a very professional and friendly driver was ‘A’ class service. Very reasonable cost for such good service”
Thank you for choosing Teddy’s
Enjoy 24-hour limousine services and support.
Teddy’s provides you with 24/7/365 solutions and can quickly access your itineraries and process new reservations or en-route changes, assist in solving problems with canceled flights, delayed planes, etc. and otherwise manage any changes with your travel plans.
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