Most business owners know that corporate travel can easily be one of the highest capital expenditure items on the average profit and loss statement.
What they may not realise, is how often corporate travel programs are inefficiently managed, and more importantly, how much money is being wasted.
Corporate Travel Management (CTM) managing director Jamie Pherous told Dynamic Business that the amount of un-tapped savings can even run into the millions.
“We often find shocking amounts of potential savings just sitting at the fingertips of new clients.”
According to Pherous, CTM focuses on returning on a business’ investment, which means its able to find significant numbers of lost savings when inducting new clients.
“These savings are ripe for the picking, but have previously gone un-tapped by ill-managed and inefficient travel programs.”
“So shocked have we been at the amounts being lost we compiled a case study dossier demonstrating how we have been able to drive massive cost reductions through carefully designed and implemented travel programs to try and encourage discussion around this important issue.
In three cases addressed in the document, Pherous said CTM’s been able to:
- Reduce the travel spend of a company of the resources sector by $5.4 million despite substantial increases in their number of sectors booked, by changing their booking behaviour and increasing their policy compliance.
- Decrease the travel spend of a construction company by 21 percent by managing booking behaviours and trends, seeing more than $100,000 in travel savings achieved despite a 10 percent increase in travel activity.
- Save an electronics retailer $1.8 million through a consolidated approach to the negotiation of direct supply agreements.
“We want people to start asking the hard questions of their travel provider – it is quite possible that complacent management could be seeing them lose millions?”
CTM has launched a free diagnostic travel health check, click here to find out more.
