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Management

Are Companies Asking the Wrong Questions When Evaluating Travel Programs?

By Adam Perrotta / October 12, 2018 / Contact Reporter
Business Travel News on X

A survey of more than 300 travel managers across the globe revealed stark differences between the factors respondents said were important in assessing a travel program and the factors they actually measure. The study was conducted by the Association of Corporate Travel Executives and BCD Travel.

Among the areas where that disconnect was greatest was in evaluating a trip's ROI and productivity. While 81 percent of respondents said it was important to measure those factors, just 13 percent actually do so. Similarly, traveler friction issues like wellness, safety and willingness to travel was labeled important by 87 percent of respondents , though just 21 percent measure it. Travel managers also labeled traveler engagement and satisfaction as important while lower numbers actually measure those factors.

The disconnect owes to outdated approaches to quality measurement, the study's authors said. Despite "transformational changes" to the industry, such as online booking and digital trip management, the methods for measuring the effectiveness of a travel program have remained unchanged for decades, they noted.

Another issue, according to the study is that many travel managers rely too heavily on third-party sources to measure quality. Ninety-four percent use data from travel management companies and 81 percent use data from other outside suppliers for measurement statistics, compared with the just 61 percent that poll travelers directly via surveys. This tilt toward external sources means corporate travel programs may overvalue hard data and fail to capitalize on the power of qualitative feedback, the authors said.

So what's the solution? According to ACTE and BCD, technologies like artificial intelligence and Big Data offer companies the ability to better ascertain the true quality of a travel program. To illustrate that point, the report cited the transformative effect such technologies have had on finance. In the wake of the economic crisis of 2007-08, increased scrutiny from consumers and regulators forced the finance industry to reimagine its quality-management processes to be more accountable and transparent. That process gave rise to greater direct engagement with consumers, more use of data and more open platforms, all of which ultimately benefited customers, the report noted.

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