Do SA business travellers toe the travel-policy line?

| 0 Comments

 

TravelPolicy.jpgTraveller non-compliance is an increasing area of concern among travel buyers and managers internationally, with great efforts made to persuade travellers of the benefits of compliance that extend beyond “because the company said so”.

A recent study conducted by FCM Travel Solutions and the African Business Travel Association (ABTA) revealed that the level of non-compliance among South African travellers is limited, however. At least 42% said that their travellers rarely or never booked out of policy, with a further 39% indicating that it didn’t happen often.

Non-compliance culprits, according to those surveyed, appear to be senior management and C-level staff, and predominantly because they feel they can do a better job themselves and can find it cheaper online. The long approval process and lack of training and knowledge were further reasons cited for non-compliance of travel policy.

Interestingly, the millennial generation, often criticised for bucking travel policy, were among the least likely to rebel, according to the respondents.

EuanMcNeil_HS.jpg“Compliance has a broader focus than just whether employees are following policy guidelines. It relates to metrics and culture, both of which can help to generate travel cost savings in different ways. If you can’t measure how compliant your travellers are, or are unsure of how to enhance your corporate culture, improving your company’s overall travel performance and your bottom line could be a challenge,” explains FCM Travel Solutions South Africa GM Euan McNeil.

“A lack of compliance among your travelling employees can result in significant missed savings through unauthorised and non-compliant bookings for air, hotel and ground travel, which over the course of a year, or even a few months, can significantly erode potential savings.

“By optimising your travel policy design and improving traveller compliance via a TMC-provided online booking tool, corporates can save more than 30% on their travel spend.”

Corporates are increasingly relying on their TMCs to assist them with traveller compliance, says Monique Swart, founder of the African Business Travel Association (ABTA). “It was encouraging to see that over 57% of respondents said that their TMC played an important role in helping corporates drive their compliance. Had we run the study in previous years, I am sure that this number would be much lower, so this is certainly becoming an area in which the TMC can show true value.”

According to the study, corporates see education as the main way to encourage travel policy compliance, with 55% of respondents choosing to go this route. At least 48% reported non-compliance to the traveller’s line manager, while only 18% named and shamed.

If non-compliance is an ongoing issue, says McNeil, corporates can adopt several strategies, including up-front traveller education, information sessions or, for repeat offenders, written warnings or individual accountability. “If there is no redress for out-of-policy bookings, your policy has no impact and no authority. Ask your TMC to help you establish a strategy for policy enforcement that is tailored to suit your corporate culture.”

For more information on technology specialising in travel, contact FCM Travel Solutions.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More