As travel costs increase, companies are finding that better cost management techniques can make a difference.
Travel expenses for US companies exceeded $ 143 billion in 1994, according to the latest American Express survey of travel management by American Express. Private sector employers spend about $ 2,484 per employee on travel and entertainment, an increase of 17% over the last four years.
Business T & E costs, which are the third largest manageable cost after sales and data processing costs, are currently being revisited. Companies recognize that even a 1% or 2% savings can contribute millions of dollars to results. Saving orders ensures that it attracts management attention, which is a requirement for this type of project. Participation begins with understanding and assessing the components of T & E management and controlling and monitoring them more effectively. Visit:- https://vietnam-travel.vn/
Practical management includes assigning travel management responsibilities, implementing a quality measurement system for used travel services, and creating and distributing formal travel policies. Only 64% of US companies have travel policies.
Even with the support of senior management, the path to savings is difficult. Only one of the three companies has successfully implemented an in-house program that can reduce travel costs, and many aspects of travel are so overwhelming that most companies do not know where they are. To get started. “The travel industry is about information,” said Steven R. Schoen, founder and CEO of The Global Group Inc.
If so, information technology seems to be an elusive, but highly sought-after, viable place for savings. Roger H. Baru, President of American Express Travel Services Group USA, said: “In addition, many companies have embarked on quality programs that include advanced process improvement and redesign efforts aimed at significantly improving T & E management processes and reducing overhead costs.”
Companies are looking at technologies to realize potential savings, but they can be very creative about how to use them.
A centralized booking system has long been the exclusive territory of travel agencies and other professionals in the industry. But in November 1992, a Ministry of Transport ruling changed everything when the general public gained access to systems such as Apollo and SABER. Travel management software such as TripPower and TravelNet soon emerged, providing businesses with information about where the T & E dollars are being used.
The software tracks expense trends by interacting with corporate databases and accessing a centralized booking system that provides instant booking information to airlines, hotels and car rental companies. These programs also allow users to generate computerized cost-saving travel reports that detail where discounts have been applied, hotel and car consumption, and travel details. The actual data provides companies with additional benefits when negotiating discounts with travel providers.
“Once you get the information, you don’t have to go back to where you started every time you change agencies,” says Mary Saboby Stevens, travel manager at biotechnology giant Chiron.
Sybase Inc. is a leader in client / server software with an annual T & E budget of over $ 15 million. I also agree. “This software provides unprecedented insight into how employees spend their travel costs and provides better leverage for negotiating with travel service providers,” said Sybase Inc’s corporate travel credits and services. Director Robert Lerner said. “You can expect significant T & E savings with quick access to your data in a real-time environment. Now you can manage your travel information and not have to rely solely on agencies or airlines.”
The cost of this privilege depends on the size of your business. A single purchase of travel management software can range from less than $ 100 to more than $ 125,000. Some software vendors serve smaller users by selling software in the $ 5 to $ 12 range for each booked ride. This is a significant savings from the industry standard of $ 50 per transaction.