Wage Revival

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.