Runzheimer Report Shows Rise In Travel Buyer Salary
<B>Runzheimer Report Shows Rise In Travel Buyer Salary</B>
By Megan Hjermstad
Travel department managers' salaries rose to an average of $64,407 in 2000, from $58,196 in 1999, according to the <I>20th Annual Profile of the Travel Management Professional</I> published last month by Runzheimer International.
The 6.77 percent increase in travel managers' salaries indicates that companies may be more aware of the value travel managers can provide to the organization. Fifty-nine percent of the 264 respondents believe their job function is growing in importance, 29 percent said it's about the same and 12 percent said it is less important.
Nonetheless, more than half--51 percent--of respondents said their salaries are commensurate with their responsibilities; only 47 percent said their compensation is commensurate with other positions with similar responsibilities.
Nearly half of the respondents said their compensation includes a bonus based on performance.
Seventy-one percent of the respondents to this year's survey are female, 29 percent are male. The average respondent is 44 years old, has seven to 10 years of experience in the travel industry and has the job title "manager."
On average, respondents spend 71 percent of their time on travel management duties; a great number of people spend 100 percent of their time on travel management duties.
Prior to joining travel management, 26 percent of respondents reported having travel agency experience, 15 percent had administration experience and 11 percent came from accounting/finance backgrounds.
The increase of travel professionals with travel agency experience, 8 percent over last year, reflects a growing number of travel managers moving from the travel agency side.
"If the opportunity is there, it's an easy move to corporate, especially if the manager is onsite already," said Phyllis Schumann, senior editor of Runzheimer Reports on Travel Management. "Who is more knowledgeable than somebody already working for the company?"
The report also indicates a shift in the department responsible for travel. The largest number of respondents--26 percent--work within the administration department. Twenty-five percent fall under purchasing/strategic sourcing departments, up 8 percent over last year. Nineteen percent of respondents report to accounting/finance, 7 percent report to office services and 5 percent report to sales/marketing.
"Typically, the bulk reside in administration because that is how travel management began 20 years ago, with executive secretaries making travel arrangements. Then it moved to finance. It still is under the finance auspice, but the trend is upward in purchasing," said Schumann. "Companies are beginning to realize travel should be purchased just as pens and paper are for the organization. There is a shift in the industry and suppliers need to understand that."
Indicating the top five responsibilities of travel managers, 90 percent of respondents reported involvement in travel policy development, 89 percent participate in travel vendor negotiations, 85 percent are involved in policy enforcement, 79 percent manage travel agencies and 77 percent communicate to travelers and divisions.
Among their travel responsibilities, respondents reported that policy enforcement was their most challenging duty, followed by travel vendor negotiations, travel policy development, managing a corporate travel department and communicating to travelers.