In many respects, 2010 represented a resurgent year for
corporate travel. Intent on pulling themselves clear from economic woes,
businesses throttled up sales activity. Their travelers returned in large
numbers to the roads, skies and rails—in many cases, venturing farther afield
in pursuit of new business than they ever had before. For travel management
professionals, however, such developments generally did not coincide with an
appreciable bump in compensation. Many who were asked to manage a growing
travel program—and more aspects of those programs—with fewer resources saw
little if any increase salary. In 2011, that changed.
(Click here to download BTN's entire 2011 Travel
Manager Salary & Attitude Survey, including all charts, as a pdf.)
While many of those polled for the 28th annual Business Travel News Travel Manager
Salary & Attitude Survey felt their salaries and/or recognition within
their organizations were not commensurate with their responsibilities and
efforts, average compensation across the base of surveyed travel managers
jumped up by a higher percentage than in any of the seven previous years. At
8.9 percent, the year-over-year jump to almost $116,000 (including salary,
bonuses and incentives) was twice as large as for any year since 2006, and
larger than any increase recorded since the first half of the last decade.
Travel managers in this context are defined as those with the titles of travel
manager, travel supervisor, travel director or vice president.
Those with the specific title of travel manager represented
the largest group of survey respondents. Their average compensation this year
is $99,250, up about 6 percent from 2010.
When looking at the entire survey base—also including
purchasing/procurement/sourcing managers, supervisors and directors;
transportation managers, supervisors and directors; and meetings/conference
managers, supervisors, planners and directors—average compensation this year
rose 5.5 percent year over year, nearly twice the rate of increase measured in
2010, to $103,912. At the same time, the percentage of all respondents
reporting no increase in annual compensation declined to 26 percent, lower than
last year's 44 percent and the smallest percentage since 2008.
Such bumps in compensation haven't fully appeased the many
travel management professionals who believe they are overworked and still
underpaid. "Increased workload with little compensation or
recognition," wrote one in response to an open-ended question about the
biggest change to their job during the past year. Another noted a "reduction
in team size, but no reduction in breadth of responsibilities and volume of
work, therefore having to assume new responsibilities for travel commodities
from a negotiation/contracting perspective."
Among all respondents, nearly 45 percent indicated their
salary is low for their responsibilities. Another 44 percent believed their
salary is appropriate while nearly 12 percent said they are "paid very
well for responsibilities."
Female respondents, accounting for a full two-thirds of the
survey base, particularly may be dissatisfied when comparing their average
compensation to their male counterparts. With an average total compensation
this year of $92,636, women participating in the survey saw an average increase
from 2010 of about 1 percent, versus a 6 percent increase for men. The
differential in average compensation between genders for 2011 reached 40
percent, the largest gap in at least three years.
Some of that gap results from disparities in positions held.
For example, 21 percent of male respondents were vice presidents—the highest
paid—versus just 5 percent of females. Another 21 percent of men were travel
directors, compared with 13 percent of women. At the other end of the pay
spectrum, 17 percent of women indicated they were a travel specialist, advisor,
coordinator, analyst or buyer, versus just 6 percent of men.
An Evolving Role
Across the survey base, many respondents indicated they
recently took on or expect to take on new responsibilities that reflect ongoing
trends in travel management and related areas.
Meetings: The overlap between sourcing, travel management
and meetings management each year seems to grow further as organizations seek
spending synergies, integrated policies and improved traveler services. This
year is no different. According to survey data, 32 percent of all respondents
said that in the past two years they became involved in strategic meetings
management or expect to within the next two years. One in five said as much for
meeting logistics.
Safety and security: Each new crisis that dominates world
headlines compels more senior managers to demand vigilance in protecting their
organizations' traveling employees. In this year's survey, 23 percent said that
in the past two years they began, or within the next two expect to begin, negotiating,
selecting or supervising use of traveler tracking software. Eighteen percent so
indicated for traveler security programs; 12 percent for traveler advisories.
Other related areas: Though mobile phone contracts
traditionally have not been and currently don't seem to be a common area of
responsibility for travel managers, 17 percent said they have or will take on
mobility services. Others picked up duties within corporate housing, incentive
travel, expense management, purchasing card programs and social networking.
Less related areas: In some cases, respondents reported that
they were given various new responsibilities not directly related to travel.
They included facilities, human resources and trade shows.
At the same time, a few of the more traditional areas of
travel management are gaining new practitioners, including T&E charge card
programs (18 percent of all respondents said they have started or expect to
start managing), travel data warehouse (16 percent) and online booking (15
percent).
Some respondents noted they recently became involved in
establishing new travel management company and expense reporting arrangements
or providing more detailed travel program reporting to senior management.
Others noted an increasingly global purview.
While a few highlighted challenges related to company and
travel program growth, several more noted travel staff and budget reductions.
"Less flexibility, more rules," wrote one respondent. "Every
dollar is scrutinized more closely."
Meanwhile, a handful of surveyed travel professionals
indicated that they and/or their department became part of procurement or
sourcing departments and initiatives. Overall, 38 percent of respondents
indicated that travel resides within their organizations' purchasing,
procurement or strategic sourcing department, followed by finance (26 percent)
and human resources (13 percent).
Recognition
Given greater cost consciousness generally and specifically
for travel programs—even as travel volumes rise—it's no surprise that senior
management in many cases is taking a more active role. More than 40 percent of
survey respondents indicated that senior executives at their organizations
during the past year have been highly or regularly involved in travel
management decisions. Almost that many more said senior management has been
somewhat involved.
In many cases—just about half of represented
organizations—senior executives now recognize travel management much more or
somewhat more than last year, according to survey respondents. About 45 percent
said such recognition is about the same as it had been.
Among surveyed travel management professionals, slightly
more (21 percent) said their efforts are not well recognized within their
organizations, compared with those who indicated their efforts are very well
recognized (20 percent).
According to about half of the survey base (109
respondents), their departments' performance at least in part determines
compensation. Savings/cost avoidance was the most commonly cited performance
factor, indicated by 63 percent of those 109 respondents, followed by
year-over-year program improvement statistics and the travel department's
contribution to organizational value (each 50 percent), and a formula that
considers savings, satisfaction, reporting and strategic initiatives (46
percent). Fewer noted traveler satisfaction by itself (33 percent) and
technology implementation (22 percent).
Among all respondents, slightly more than half indicated
that their bonuses are tied to departmental performance. For 15 percent, incentives
are tied to performance; 14 percent indicated stock options. Overall, 151
respondents indicated that they receive bonuses and/or incentives, which on
average accounted for 13.7 percent of their total compensation.
A Look Ahead
When asked where they see themselves in two years, nearly a
third of the respondents expect to be right where they are. A few more than
that expect to be with their current employer but "in a more advanced
travel-related position." Roughly one in 10 expect to be at the same company,
but in a non-travel position. Most of the remainder expect to be working
elsewhere.
Those contemplating a move should consider that 27 percent
of all survey respondents indicated that travel management industry employment
opportunities in the past two years have significantly or somewhat decreased.
Just over one-third said they have seen no change while 36 percent said such
opportunities have significantly or somewhat increased.
As for next year's salaries, a small majority expect no
change from this year, with most of the remainder expecting an increase.
Methodology
Business Travel News'
28th annual Travel Manager Salary & Attitude Survey measures compensation
and analyzes perceptions among corporate travel professionals. It compares
current salaries to previous years, determines how compensation is derived and
shares sentiments from those buying and managing corporate travel.
For the 2011 edition, invitation emails were sent to all
qualified subscribers of Business Travel
News and other publications from The BTN Group, including Travel Procurement, Management.travel and The
Transnational. For further qualification, respondents were asked to
describe their position. Those who met the criteria indicated they were
involved in setting corporate travel policies; managing business travel cost
controls; selecting or recommending business travel suppliers; planning,
arranging or approving business travel for individuals; negotiating meeting
rates; or selecting or recommending meeting facilities and destinations. Those
respondents indicating no such responsibilities were disqualified.
A total of 221 qualified respondents sufficiently completed
an online survey questionnaire, though not every respondent answered every
question.
Of the 221 respondents, 95 were travel managers or
supervisors, 34 were travel directors and 30 were travel specialists, advisors,
coordinators, analysts or buyers. The remainder included vice presidents;
purchasing/procurement/sourcing managers, supervisors and directors;
transportation managers, supervisors and directors; and meetings/conference
managers, supervisors, planners and directors. Of the total, two-thirds were
female.
Nearly a third of all respondents indicated they spend 100
percent of their work time on travel management. Seven in 10 respondents said
they spend at least half their time on travel management.
More than half of all respondents indicated they held none
of the 10 industry certifications listed in the questionnaire. The
certification held by more than any other by far was Certified Corporate Travel
Executive, with 17 percent of the survey base.
Polled travel professionals represented organizations with a
wide range of travel expenditures from a broad sampling of industries.
Manufacturing (17 percent), finance/insurance (16 percent), technology (14
percent) and pharmaceuticals/medical (10 percent) were the most heavily
represented sectors. A quarter of all respondents indicated their 2010 spending
on U.S.-booked tickets was less than $2 million while nearly that many reported
that it was more than $20 million. Forty percent of respondents pegged their
organizations' U.S. air spending between $2 million and $12 million.
SurveyMonkey collected and tabulated responses.