In some companies, the travel program simply exits to move employees from point A to point B. That makes sense, of course, because prospective clients turn into customers and current customer relationships are strengthened through face-to-face interactions. There’s no substitute for meeting in-person to grow the top-line.
Businesses that don’t look beyond that for ways in which the travel program can contribute to other corporate goals are missing out on some low-hanging fruit. For example, a well-manged travel program with clear savings objectives and a strategy for improving the metrics that lead to reducing travel-related costs can contribute to their organization’s wider savings, operating margin and net-profit goals.
Consider a company with $500,000 in annual travel costs and annual sales of $50 million with a 10% net margin. By identifying ways to save 10%, for example, on annual travel costs, by modifying traveler behavior, accessing a travel management company’s negotiated rates, and utilizing the company’s preferred supplier corporate contracts, that company can save $50,000 per year on employee travel. That $50,000 goes straight to the company’s bottom line. To achieve that bottom line increase with sales, new revenue of $500,000 would have to be generated ($50,000/10%). You can change these numbers to see what your company’s travel savings/sales equivalency figure is.
Your corporate travel program can make an impact on your company beyond just moving employees from point A to point B. Communicating corporate objectives with your organization’s travel manager and your travel management company can start a collaborative effort that optimizes your travel program and at the same time helps your business meet its wider corporate goals.