Have you asked yourself how your company is controlling unused travel tickets?
With technological advancement and new corporate travel needs, business organizations strive to be well prepared for future challenges along with meeting short and long-term organizational goals. However, corporate plans can still be uncertain in spite of its strategic planning and well-formulated business agendas. Consequently, events are rescheduled and meetings get canceled, inevitably causing unutilized airline ticket. But should organizations really consider it as an unavoidable loss? With Corporate Travel Management program, an organization can enjoy unutilized ticket management solution which ensures that the organization retains the maximum value from its unused tickets.
There are several advantages of utilizing a travel management company (TMC) that prioritizes savings. Moreover, TMCs balance employee needs and interests with corporate goals and policies. Recovery of the unused tickets is an essential element of a managed travel program. Due to a change of plans, nearly 10% of an organization’s business travel airline bookings are exchanged or refunded. Moreover, an approximately 10% of a company’s airline reservations are left unconsumed. In such unmanaged travel programs, unutilised tickets are significantly difficult to be tracked and reused. Since Travel Managers can only track what is apprised, it is tricky to rely on business travelers to keep the managers well informed of unused tickets.
In such unpredictable situation, organizations that track and make the most of the unutilized tickets usually save around 5 to 7% on its travel expenditure. To attain a corporate travel management solution, the partnership with a TMC is a vital step that delivers automated tracking and reporting of unused tickets. To a minimum, technology will allow for the company to gain visibility over such unused tickets. The system will automatically employ the tickets for new online or offline reservations. Secondly, another value that a TMC bring is in regarding to preventing and reducing the costs to reuse the ticket.
You are not alone. In 2004, congressional investigators reported that The Defense Department had spent an estimated of $100 million for airline tickets that were not utilized over six years. Had the Defense Department had an affiliation with a TMC, the Pentagon could have sought refunds since the tickets were reimbursable.
A Corporate Travel Management solution can bring you benefits such as simplified processes and enhanced reporting:
Better productivity: Automated tools intensify accuracy and build proficiencies for the unused ticket management process letting travel resources to be reallocated.
Increased compliance: Online booking tool allows you to promote unused ticket availability and simultaneously stimulate preferred supplier application.
Refined negotiations: Tracking unused tickets delivers visibility into data that allows organizations to upgrade the management of unutilized tickets with individual airlines.
Cost reduction and efficiency: Due to the reallocation of resources and increased compliance, the solution ensures cost reduction and efficiency in cheap reservations that allows a corporate organization to avoid or recuperate unconsumed tickets.
In short, never lose the value of your unused tickets due to lack of solution-awareness or management. Make the most of a Corporate Travel Management program that delivers business travelers with easy ticket information at the point of purchase. It renders cost tracking and control that facilitates adherence to company travel policies. Furthermore, it provides savings through negotiated discounts serving as a valuable information tool for managers and business travelers alike. Getting reports regarding unutilized ticket delivered to your inbox ensures better productivity, increased compliance, and enhanced negotiations enabling you to save thousands!
By Carmen Stinson – Corporate Travel Director at Forest Travel