Global travel management company BCD Travel’s April 2024 survey of more than 200 travel buyers has revealed a shift in corporate travel priorities, where duty of care, policy compliance, and cost control now reign supreme.
All three ranked highly in 2023 and have since gained importance, however, the ratings of other priorities went slightly down. Meanwhile, traveller satisfaction dropped in importance as one of the top priorities from 2021 to 2023 to fourth in 2024. Similarly, payment and expense were assessed lower than a year ago.
Although most travel buyers reported that their company has a dedicated travel policy, there are differences in how policies are defined.
Seven in 10 say their travel policy aligns with their company goals and is supported by leadership. Six in 10 define it as cost-focused and three in 10 describe it as traveller-centric. Only 15 per cent of travel buyers reported that the policy is based on KPIs and traveller feedback.
What’s covered under travel policies?
A travel policy is a company’s guide for managing business travel. It helps control travel costs and outlines the guidelines employees must follow when planning trips for the company. Topics covered by travel policies range from trip purpose to traveller well-being to bleisure travel.
According to the survey, the two most commonly covered themes include trip purpose (e.g. client meetings vs. internal meetings) and pre-trip approvals. While sustainability is growing in importance in the industry, less than half said sustainable travel is included in their policy. This is in line with a BCD survey from July 2023 that found only 45 per cent of companies have targets for sustainable business travel. Bleisure travel, remote work, and diversity, equity and inclusion (DE&I) are covered/included least often.
Many companies have dedicated travel policies for senior employees, specific business units, and frequent travellers. Only 12 per cent have written policies for travellers with accessibility needs or neurodivergent travellers. Less than one in 10 have policies addressing employees with special needs (e.g. nursing mothers), LGBTQ+ travellers, gender, religion, or age.
Challenges
The biggest challenge for buyers when updating the policy is educating travellers. This is followed by managing policy exceptions, managing policy across different regions, and controlling policy compliance.
“Traveling for work can be stressful. You want your employees to be able to access all the resources they need to make the process as simple and efficient as possible – and that’s why regular policy communication is so important,” said Teri Miller, BCD’s executive vice president of the global client team. “Technology has streamlined traveller communications, creating ways for companies to easily provide relevant, timely information that can keep travellers safe.”
Policy communication & enforcement
According to respondents, the most common way to communicate travel policy updates is through the company intranet, followed by direct mailing. A third share updates in the online booking tool (OBT) or during employee training. BCD suggests introducing the travel policy during employee onboarding as it’s mutually beneficial. It builds transparency, helps new hires feel informed, and fosters a culture of preparedness and responsibility.
While more than half of travel buyers view their travel policy as very or extremely effective, only a third are as confident in their policy communication. Almost half rate their policy communication as moderately effective, reflecting the common challenge of educating travellers about the policy.
The most frequently used ways of enforcing travel policies include highlighting policy-compliant travel options in the OBT; performing an audit of travel expenses; and regularly communicating travel policy changes via multiple channels.
“We know from experience that one of the most effective ways to communicate with travellers and influence their behaviour is to put relevant messaging directly in the booking path. It not only results in increased compliance, but also leads to a more personalised and dynamic shopping experience for the traveller,” said Miller.
Cost-control policies
More than half of travel buyers report having reduced their travel budget in the past few years. At the same time, almost all introduced certain cost-control measures. The most popular measures are directed at reducing travel volume: encouraging online meetings, decreasing non-essential travel, encouraging fewer but longer trips, and limiting the number of employees on one trip.
Other measures include using tools to lower the cost of a trip (e.g. price assurance), strict expense control, booking lower classes of air travel, and encouraging the use of public transportation instead of taxis.
Travel policy updates
Companies should update their travel policies regularly to address the changing needs of travellers and the industry. Most respondents updated their travel policy within the past year.
Trends which shape policy include communication with travellers before, during and after trips; and the usage of traveller engagement to create awareness, influence behaviour and increase satisfaction.
Almost two-thirds of travel buyers expect sustainability (along with safety and security) to have the strongest impact on corporate travel policies in the upcoming years. Other trends of influence are technology, NDC, traveller wellbeing and new traveller needs. Meanwhile, DE&I is at the bottom of the list along with bleisure. Both are relevant but are not expected to considerably change travel policies.
Although traveller wellbeing has dropped slightly in importance, companies should be aware that business travel can be exhausting and influence travellers’ wellbeing and happiness. In today’s struggle for talent, accommodating travellers’ wellbeing can have a positive impact on employee retention.
To view the travel buyer survey report, click here.
