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Hidden effects of policy on traveler well-being

4 min
Posted: 15 September 2020

Travel is emotional. Time spent away from family affects people’s lives directly. Being compensated with some time to go shopping on a Tuesday doesn’t equal going swimming with the family on a Sunday. It can also affect travelers in subtle ways that are not so obvious.

Sound policy for one company may be inappropriate for another. Economy class may not affect the effectiveness of travelers who work for a company where long-haul trips are only for internal meetings but could well do for lawyers whose meetings can produce sizable client fees. Here are examples of where travel policies might be less than optimal and how you can win by recognizing the hidden effects of elements of your travel policy.

Class of travel

Class of travel is a central pillar of travel policy but business travel no longer automatically means business class. Eligibility for premium classes has historically depended on length of journey and/or seniority. After the 2008 global economic downturn many companies reduced the number of employees eligible or shaved a few hours of flight duration in their policies to save money. Is this the best way to get maximum return on investment from business travel? Does a premium class benefit a senior manager to the same extent when they travel for a short meeting at which a multi-million-dollar contract is at stake as when traveling for a week-long training course?

Some organizations build varying trip objectives into their policies. Specifying that travelers are eligible for a higher travel class than usual if they are expected to conduct business within three hours of landing is one example. Many companies opt for connecting flights on routes to control costs. A long sprint through an unknown airport to catch the next leg may not be suitable for older travelers or pregnant women. A review of who qualifies for direct flights could improve traveler welfare. A good policy might specify lowest logical fare rather than the lowest fare possible

Rate ceilings

In an era of traveler centricity policies of rate ceilings or per diems are becoming more popular. Travelers can choose properties that match their own tastes and preferences rather than a preferred hotel that has a great rate but no gym. But how often does your organization review the suitability of these caps?

Demand and supply for accommodation in a city can change for all kinds of external reasons from a large business hotel closing for refurbishment to a terrorist incident. However, rate caps can have unintended consequences. If the cap is not reviewed regularly, there is a danger that travelers will be forced into less suitable hotels that may increase traveler risk by being in less safe neighborhoods. There may be justification for having a seasonal rate cap that takes into account things such as trade fairs and sporting events that can dramatically charge dynamic hotel rates.

Trip approval

Processes which aim to ensure people are not traveling needlessly or extravagantly are common. A manager’s approval before the money is spent is preferable to an inquisition afterwards. However, many companies have a casual or lengthy approval process which can result in the fare rising between travel request and booking. Reviewing and refining the approval process could increase traveler satisfaction. Policy should clarify which travelers need approval for which kinds of trips.

Duty of care

Organizations that expect their travelers to go to so-called “risky destinations” should consider including relevant detail in the travel policy. Reminding people of pre-trip requirements such as inoculations and destination information and detailing what to do in the event of a natural disaster or political incident will promote traveler safety and well-being. Your travel policy might also need to include differentiation between road warriors and first-time travelers to these destinations. What may be obvious to one may not be obvious to another and novice business travelers might need more guidance on local conditions and safe behavior. Is it time to give your travel policy a health check?

Download our whitepaper 'What growth hackers know about business travel' to read more about the importance of traveler satisfaction.

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