As a travel supervisor, you’ve entry to swathes of worker travel information. Every time an worker travels for enterprise, an enormous quantity of information is created—from how a lot the journey value and the way it was booked, to which distributors have been used, and the way carefully the journey complies along with your company travel coverage.
All of this information supplies you with the perception you’ll want to observe key efficiency indicators (KPIs) for travel management. Normally, organizations will resolve which KPIs for travel management to give attention to by guaranteeing that they align with their travel budgets, general enterprise travel targets, and travel business benchmarks.
It’s your job to not solely set up and monitor the suitable travel management KPIs for your group but additionally to leverage the outcomes and switch them into actionable insights to assist optimize your travel management program.
So, which KPIs for travel management are most necessary to measure? Under, we’ll cowl 9 travel management KPIs which are essential for most organizations.
What sorts of KPIs for travel management do you have to be measuring?
Many organizations view measuring travel KPIs primarily as a approach to cut back prices or optimize the best way they use their travel price range. Nonetheless, though value financial savings are necessary, there are additionally different necessary components to think about.
Listed below are 4 broad sorts of company travel metrics that every one organizations ought to measure:
These metrics are associated to how organizations can lower your expenses and defend their backside line. For instance, this class covers KPIs that measure policy compliance, overspend exterior of booking tools, complete spend, and price financial savings. Cancellation prices and common spend per vertical (flight prices, resort prices, and many others.) would additionally fall below this class.
How TravelPerk makes monitoring travel spend easy
The one approach to really keep on top of your corporation travel price range, is with entry to real-time reporting. With TravelPerk’s refined reporting instruments you possibly can break prices down by worker, staff, travel sort, common journey value, recoverable VAT, and extra.
High quality metrics
High quality metrics cowl KPIs that relate to worker satisfaction. For instance, KPIs of this kind measure traveler satisfaction, traveler engagement with authorized reserving platforms, and SLA settlement satisfaction by distributors.
Lastly, enterprise metrics cowl return on funding (ROI) and productiveness KPIs. For instance, organizations can measure journey success charge, productiveness charge, and the impression on travel inside departments to gauge how profitable their travel program is.
Measuring sustainability metrics is essential for corporations to fulfill their company social accountability targets. Many areas are incessantly releasing new environmental laws, comparable to (*9*), and organizations ought to be monitoring sustainability KPIs to remain compliant.
Some examples of sustainability metrics are the quantity of CO2 being produced by enterprise travel, how a lot of this CO2 is offset, which transport sorts are getting used (prepare travel, air travel, and many others.), and whether or not there are alternatives to make travel extra eco-friendly.
9 Top KPIs for travel management
Now that we’ve lined a very powerful travel management KPI classes, beneath, we’ll undergo 9 KPIs that your group ought to measure to guage the effectiveness of its corporate business travel policy.
1. Reserving device adoption
If your organization has invested in a reserving device or a full-service travel management platform, you probably did so with the intention of streamlining processes, guaranteeing compliance, and, importantly, making savings on corporate travel.
Regardless that you’re on board with the travel reserving answer, what number of of your touring workers are utilizing different reserving channels to make travel preparations? Measuring the share of workers who’ve absolutely adopted the device as their main technique of constructing travel preparations will provide help to consider how effective the online booking tool is, and the extent of ROI you’re getting out of it.
Plus, your reserving device will solely present workers authorized suppliers which were included in your company travel coverage, and are more likely to offer you company reductions. To achieve higher reserving visibility, divide the booked and ticketed spend by your complete travel spend to find how effectively your group has adopted your reserving device.
2. Use of authorized strategies of cost
Very like your reserving device, it’s necessary to get a deal with on how compliant your workers are with the forms of payment they’re utilizing.
For instance, organizations that present their workers with an organization bank card to cowl business travel expenses must know the degrees of non-compliance with their cost coverage. A travel and expense policy is supposed to assist organizations preserve occupational fraud at bay, streamline the reimbursement course of, and adjust to tax workplace rules. Plus, having authorized cost strategies makes it simpler to observe travel spend and determine areas for optimization.
You’ll be able to measure how effectively your workers are adhering to your cost coverage by dividing your travel-related spend on an organization bank card by your complete travel spend.
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3. Share of bookings made inside coverage
Does your organization have a corporate travel policy in place? Travel insurance policies are key for staying on top of spending, growing reserving effectivity, and maintaining vacationers secure.
It’s essential to know how many individuals are reserving inside coverage over time. You’ll additionally wish to know the explanations for any coverage violations: are managers taking too lengthy to approve enterprise journeys, inflicting them to go up in worth? Is the coverage too strict? Or are vacationers reserving their journeys too last-minute? By observing developments within the information, you’ll have the ability to uncover potential flaws in your organization’s travel management program.
4. Financial savings from company travel reductions
Securing corporate travel discounts is an effective way for organizations to maintain prices low. Whereas many corporations spend time individually negotiating reductions with completely different distributors, there’s a higher and simpler manner to do that. Travel management platforms like TravelPerk usually have their very own offers with distributors, and supply unique reductions on travel providers (like airline ticket costs, hotel rooms, and automobile leases) to all their prospects, to allow them to make the most of company reductions with out having to barter their very own charges.
To measure the share your organization has saved by securing company charges and reductions by way of your travel management platform, take the typical market charge and subtract the discounted charge, then divide by the typical market charge and multiply by 100.
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5. Traveler satisfaction
Figuring out how pleased your touring workers are is vital to enterprise success. In the event that they aren’t pleased with their travel experiences, their unhappiness is probably going related along with your company travel program and coverage. As with different areas of enterprise, when workers are sad, retention charges are more likely to plummet.
Requiring vacationers to take common satisfaction surveys about their travel experiences offers you perception into how effectively your travel insurance policies are working. Ask them about their transportation, lodging, expense, and reserving experiences to determine areas for enchancment.
6. Share of adjustments, rebookings, and cancellations
The place potential, you wish to keep away from making any adjustments to bookings since they often incur steep prices and extra spend.
Check out the share of rebookings, changes, and cancellations throughout a particular interval. This offers you an thought of whether or not there are particular occasions of the month or 12 months when adjustments to bookings happen, whether or not they are often attributed to particular departments, and what causes got for the adjustments. From there, you possibly can think about how finest to cut back the full quantity of adjustments made to unique bookings.
If vacationers are making a variety of last-minute adjustments, think about using a versatile travel reserving possibility like FlexiPerk. FlexiPerk permits TravelPerk prospects to guide any flight, resort, automobile, or prepare at any charge, after which cancel at any time and obtain an 80% refund as credit score on the platform. This ends in a 40% common financial savings in comparison with conventional versatile fares.
7. Share of advance bookings
Reserving forward saves organizations cash, and customarily gives extra flexibility and selection with travel preparations. Normally, your workers ought to be reserving travel as far prematurely as potential.
In fact, situations that decision for last-minute bookings can at all times come up. However, when you check out what number of days prematurely travel preparations are made on common, you’ll get an image of whether or not you’ll want to regulate your travel reserving processes and/or insurance policies.
8. Variety of travel incident studies
You have got a authorized obligation to maintain your workers secure after they travel. This is called duty of care. To meet your obligation of care obligations, you’ll must have travel risk management insurance policies in place that handle dangers like political unrest, sickness, regional safety issues, and entry necessities.
Take a great have a look at the full variety of incident studies over a particular timeframe to gauge simply how secure your workers are after they travel. Plus, be proactive about any additional measures you possibly can put in place to make sure their safety during any future business trip.
9. Carbon footprint
Lastly, to fulfill your sustainability targets, you’ll want a manner of measuring your group’s carbon footprint. This entails understanding how a lot CO2 is being launched into the environment throughout enterprise travel.
After you have visibility over your carbon footprint, you possibly can determine alternatives for extra sustainable travel. For instance, vacationers may take trains as a substitute of flying each time potential, and will additionally choose for public transportation over non-public taxis as soon as they’ve arrived at their vacation spot. TravelPerk’s GreenPerk program permits companies to routinely calculate the carbon footprint of their enterprise travel program, and attain web zero emissions by investing in carbon offsets.
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