Getting With the Program - Carlson Wagonlit Travel

8 How Companies Can Improve Travel Policy and ComplianceThe results show that rules pertaining to travel class/category and preferred suppliers,which are typically the main focus of cost-saving efforts, are not the only source ofsignificant savings. In fact, savings opportunities are spread over four key travel rules(advance air booking, restricted airfares, preferred suppliers and class/category of travel),as well as preferred booking channels. These savings come from a well designed travelpolicy that addresses these items and from increased traveler compliance, as shown inthe chart below.Companies can reduce total spend by 20 percent on average by improving performanceon five main policy items% of total air and hotel spend20153.9%2.5%5.1% 1.4%17.9%2.8%2.4%0.4%20.7%12.3%2.6%9.9%105.0% 2.5%55.7%3.5%2.5%2.5%8.0%8.4%02.2%AdvancebookingOverlap -2%RestrictedfaresPrefferedsuppliersClass/categoryof travelTotaltravel rulesBookingchannelTotalCompliance impact: 60% of total savingsPolicy impact: 40% of total savingsSource: CWT Travel Management InstituteNote: Advance booking is generally required for restricted fares, explaining the overlap in savings potential between the two policy items.Key finding 2: Four key travel rules provide significant savings opportunitiesAnalysis of CWT client transactions provides insights into the importance of each of thefour key travel rules:Advance air booking. Booking two or three weeks in advance enables travelers toaccess significantly lower fares. Discounts can exceed 50 percent of the ticket price(as shown in the example below), especially on highly competitive routes or ineconomy class. In some extremely regulated markets such as India and China,however, there is no price advantage to booking in advance.