Corporate Travel Program Checklists: What Every CFO Should Ask
For CFOs, optimizing a corporate travel program isn’t solely about saving money – it’s about aligning business travel with broader financial and operational goals. In today’s business travel landscape, corporate travel solutions are more than just logistics concerns—they are necessary strategic functions.
The following checklists outline the questions every CFO should ask to enhance their business travel program.
The Importance of a Corporate Travel Program
A well-managed travel program is key to the effective operation of a business, as it directly impacts financial performance and employee satisfaction.
What Are the Benefits of a Well-Structured Business Travel Program?
A cohesive business travel program ensures consistency across departments and simplifies booking processes. Working with a strategic business travel solutions partner helps unify travel processes while providing flexibility.
How Does a Travel Program Impact Employee Productivity and Satisfaction?
Business travelers appreciate a well-defined business travel program that offers options tailored to their preferences. Empowered travelers are more productive, and this satisfaction translates into improved overall business performance.
Cost Control and Budget Management
From preferred vendor negotiations to real-time policy enforcement, a clearly defined business travel program provides visibility and control over expenditures. This enables CFOs to predict costs and mitigate potential financial surprises more accurately.
Business Travel Programs: Data and Metrics
For CFOs, tracking the right data and metrics for their corporate travel program is paramount for optimizing costs, ensuring compliance with corporate travel policies, enhancing traveler safety, and improving overall program performance.
Total Travel Spend
The total travel spend refers to all costs related to flights, hotels, ground transportation, meals, and incidentals. Tracking the total travel spend allows CFOs to identify financial trends and areas for enhancing savings or making corporate policy adjustments.
Cost per Trip/Cost per Traveler
This is defined as the average spend per business trip or employee. CFOs should benchmark current cost per trip and cost per traveler metrics against industry standards to set realistic budget expectations.
Policy Compliance Rate
The policy compliance rate refers to the percentage of bookings made in accordance with the corporate travel policy. Low compliance may indicate a lack of communication about the policy, insufficient tools, or intentional non-compliance.
Booking Channel Compliance
The booking channel compliance calculates the percentage of trips booked through approved channels. Enhancing booking channel compliance improves the ability to negotiate favorable rates and enhances duty of care coverage.
Advance Booking Window
How far in advance do employees book business travel? Booking corporate travel promptly can help reduce costs and encourage proactive planning.
Unused Ticket Rate/Recovery
The unused ticket rate and recovery refer to the percentage and value of unused airline tickets, as well as the amount recovered. A higher unused ticket value represents lost savings opportunities.
Traveler Satisfaction/Experience Score
Using survey-based employee feedback to calculate the travel experience score can help CFOs enhance employee productivity and retention rates.
Trip Purpose Breakdown
The trip purpose breakdown outlines the business reasons for travel, such as sales, training, and conferences. This helps CFOs calculate the ROI of their corporate travel program and ensures travel aligns with overall business goals.
Trip ROI/Business Outcome
By calculating the business impact from a trip (e.g., deals closed, client retention), CFOs can effectively link corporate travel activity to revenue-generating outcomes.
Travel Risk Incidents
The travel risk incident metrics refer to any risk-related incidents that occur during business travel, such as missed flights or emergencies. Monitoring these metrics closely enables CFOs to better support their duty of care efforts, enhancing traveler safety and improving crisis readiness.
Key Considerations for Corporate Travel Program Policy Development
Defining Clear Travel Policies and Guidelines
Every travel program should start with a clearly defined corporate travel policy. The best travel policies strike the right balance between structure and flexibility. Travel delays, transfers, and other changes should be anticipated and integrated into the travel policy. CFOs should ensure their company has well-documented travel protocols that define approval processes, service classes, reimbursement procedures, and booking windows.
Incorporating Flexibility and Employee Preferences
A rigid corporate travel policy may foster non-compliance. Providing employees with flexible travel options within approved guidelines, such as self-booking through authorized tools, can increase adherence to the travel policy.
Addressing Compliance and Risk Management
Corporate travel policies should account for travel management duty of care, insurance coverage, and emergency support. CFOs must review how their business travel provider ensures traveler safety and compliance with internal and external policy regulations.
How Can CFOs Manage Travel Expenses Effectively?
An effective corporate travel program requires transparency and intuitive predictability in allocating funds for travel-related expenses.
Estimating Travel Costs Accurately
Utilize historical data to forecast airfares, lodging, per diems, and transportation, taking into account seasonal trends and international travel considerations.
Setting a Budget Based on Categorical Data
Create category-level budgets and define thresholds for each department. An effective
travel management solution can automate budget comparisons and alert CFOs to real-time overages.
Identifying Potential Cost-Saving Opportunities
Are employees booking through approved channels? Are negotiated rates with hotels and airlines being used? CFOs should evaluate any data related to missed savings opportunities and supplier performance to discover cost-saving opportunities.
Technology and Tools for Effective Travel Management
Modern corporate travel programs utilize integrated technology to enhance visibility, automate travel booking processes, and achieve cost savings.
Utilizing Travel Management Software
CFOs must ensure their business travel solution provides centralized booking platforms, corporate travel policy enforcement, and approval workflows to streamline operations.
Integrating Expense Management Systems
Utilizing effective corporate travel payment solutions minimizes financial errors and accelerates reimbursement processes.
Using Travel Data and Analytics to Enhance Travel Strategy
What are the company’s top destinations? Which departments travel the most often? As a CFO, evaluating granular data can help refine business travel strategy and report accurate results to stakeholders.
Evaluating the Corporate Travel Program
Criteria for Selecting Business Travel Agencies: Review potential business travel providers based on the quality of their business travel services, the booking tools and technology platforms they offer, and their industry experience.
- Understanding Contract Terms and Conditions: Understand SLAs, cancellation policies, performance guarantees, and penalty clauses. Ensure the contracts align with the company’s financial and operational goals.
- Key Performance Indicators (KPIs) to Track: Evaluate the data and metrics provided by the business travel agency, including travel spend per employee, policy compliance rates, booking lead times, and unused ticket recovery.
- Conducting Regular Program Assessments: Set a quarterly or bi-annual cadence to evaluate whether the corporate travel program meets its financial, safety, and budgetary targets.
- Gathering Feedback from Employees: Conduct business traveler surveys and organize focus groups to identify pain points and assess areas for improvement in the corporate travel program.
Optimize Your Corporate Travel Program with Adelman Travel
As a CFO, by asking the right questions and partnering with a premier business travel solutions provider, you can turn your business travel program into a source of measurable value. These checklists aren’t just a guide—it’s a starting point for building a corporate travel program as strategic as your bottom line demands.
For more insights on aligning your travel management with your organization’s goals, contact Adelman Travel today to discover how our tailored approach can help streamline your travel strategy.