As a journey supervisor, you may have entry to swathes of worker journey knowledge. Every time an worker travels for enterprise, an enormous quantity of knowledge is created—from how a lot the journey value and the way it was booked, to which distributors have been used, and the way intently the journey complies along with your company journey coverage.
All of this knowledge offers you with the perception you might want to monitor key efficiency indicators (KPIs) for journey administration. Often, organizations will resolve which KPIs for travel management to concentrate on by guaranteeing that they align with their travel budgets, general enterprise journey objectives, and journey trade benchmarks.
It’s your job to not solely set up and monitor the proper journey administration KPIs to your group but in addition to leverage the outcomes and switch them into actionable insights to assist optimize your journey administration program.
So, which KPIs for journey administration are most vital to measure? Beneath, we’ll cowl 9 journey administration KPIs which can be essential for many organizations.
What varieties of KPIs for journey administration must you be measuring?
Many organizations view measuring journey KPIs primarily as a approach to scale back prices or optimize the way in which they use their journey finances. Nevertheless, though value financial savings are vital, there are additionally different vital elements to think about.
Listed below are 4 broad varieties of company journey metrics that each one organizations ought to measure:
Monetary metrics
These metrics are associated to how organizations can get monetary savings and defend their backside line. For instance, this class covers KPIs that measure policy compliance, overspend outdoors of booking tools, whole spend, and value financial savings. Cancellation prices and common spend per vertical (flight prices, resort prices, and so on.) would additionally fall beneath this class.
How TravelPerk makes monitoring journey spend easy
The one approach to actually keep on prime of your corporation journey finances, is with entry to real-time reporting. With TravelPerk’s subtle reporting instruments you possibly can break prices down by worker, group, journey sort, common journey value, recoverable VAT, and extra.
High quality metrics
High quality metrics cowl KPIs that relate to worker satisfaction. For instance, KPIs of this sort measure traveler satisfaction, traveler engagement with accredited reserving platforms, and SLA settlement satisfaction by distributors.
Enterprise metrics
Lastly, enterprise metrics cowl return on funding (ROI) and productiveness KPIs. For instance, organizations can measure journey success fee, productiveness fee, and the impression on journey inside departments to gauge how profitable their journey program is.
Sustainability metrics
Measuring sustainability metrics is essential for firms to fulfill their company social duty objectives. Many areas are steadily releasing new environmental laws, corresponding to the Corporate Sustainability Reporting Directive (CSRD) in the European Union, and organizations needs to be monitoring sustainability KPIs to remain compliant.
Some examples of sustainability metrics are the quantity of CO2 being produced by enterprise journey, how a lot of this CO2 is offset, which transport sorts are getting used (prepare journey, air journey, and so on.), and whether or not there are alternatives to make journey extra eco-friendly.
9 High KPIs for journey administration
Now that we’ve coated crucial journey administration KPI classes, under, we’ll undergo 9 KPIs that your group ought to measure to judge the effectiveness of its corporate business travel policy.
If your organization doesn’t have a journey coverage, be happy to seek advice from our free company travel policy for employees to create yours.
1. Reserving device adoption
If your organization has invested in a reserving device or a full-service travel management platform, you probably did so with the intention of streamlining processes, guaranteeing compliance, and, importantly, making savings on corporate travel.
Regardless that you’re on board with the journey reserving resolution, what number of of your touring workers are utilizing different reserving channels to make journey preparations? Measuring the proportion of workers who’ve totally adopted the device as their main methodology of constructing journey preparations will provide help to consider how effective the online booking tool is, and the extent of ROI you’re getting out of it.
Plus, your reserving device will solely present workers accredited suppliers which were included in your company journey coverage, and are prone to offer you company reductions. To realize higher reserving visibility, divide the booked and ticketed spend by your whole journey spend to find how properly your group has adopted your reserving device.
2. Use of accredited strategies of fee
Very like your reserving device, it’s vital to get a deal with on how compliant your workers are with the forms of payment they’re utilizing.
For instance, organizations that present their workers with an organization bank card to cowl business travel expenses must know the degrees of non-compliance with their fee coverage. A travel and expense policy is supposed to assist organizations maintain occupational fraud at bay, streamline the reimbursement course of, and adjust to tax workplace laws. Plus, having accredited fee strategies makes it simpler to watch journey spend and establish areas for optimization.
You may measure how properly your workers are adhering to your fee coverage by dividing your travel-related spend on an organization bank card by your whole journey spend.
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3. Share of bookings made inside coverage
Does your organization have a corporate travel policy in place? Journey insurance policies are key for staying on prime of spending, growing reserving effectivity, and maintaining vacationers secure.
It’s essential to know how many individuals are reserving inside coverage over time. You’ll additionally wish to know the explanations for any coverage violations: are managers taking too lengthy to approve enterprise journeys, inflicting them to go up in value? Is the coverage too strict? Or are vacationers reserving their journeys too last-minute? By observing traits within the knowledge, you’ll have the ability to uncover potential flaws in your organization’s journey administration program.
4. Financial savings from company journey reductions
Securing corporate travel discounts is a good way for organizations to maintain prices low. Whereas many firms spend time individually negotiating reductions with totally different distributors, there’s a higher and simpler means to do that. Journey administration platforms like TravelPerk usually have their very own offers with distributors, and supply unique reductions on journey companies (like airline ticket costs, hotel rooms, and automobile leases) to all their clients, to allow them to benefit from company reductions with out having to barter their very own charges.
To measure the proportion your organization has saved by securing company charges and reductions by your journey administration platform, take the typical market fee and subtract the discounted fee, then divide by the typical market fee and multiply by 100.
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5. Traveler satisfaction
Understanding how blissful your touring workers are is essential to enterprise success. In the event that they aren’t pleased with their journey experiences, their unhappiness is probably going related along with your company journey program and coverage. As with different areas of enterprise, when workers are sad, retention charges are prone to plummet.
Requiring vacationers to take common satisfaction surveys about their journey experiences offers you perception into how properly your journey insurance policies are working. Ask them about their transportation, lodging, expense, and reserving experiences to establish areas for enchancment.
6. Share of adjustments, rebookings, and cancellations
The place attainable, you wish to keep away from making any adjustments to bookings since they normally incur steep expenses and extra spend.
Check out the proportion of rebookings, changes, and cancellations throughout a particular interval. This offers you an thought of whether or not there are particular instances of the month or 12 months when adjustments to bookings happen, whether or not they are often attributed to particular departments, and what causes got for the adjustments. From there, you possibly can think about how greatest to scale back the full quantity of adjustments made to unique bookings.
If vacationers are making loads of last-minute adjustments, think about using a versatile journey reserving possibility like FlexiPerk. FlexiPerk permits TravelPerk clients to e-book any flight, resort, automobile, or prepare at any fee, after which cancel at any time and obtain an 80% refund as credit score on the platform. This ends in a 40% common financial savings in comparison with conventional versatile fares.
7. Share of advance bookings
Reserving forward saves organizations cash, and usually gives extra flexibility and selection with journey preparations. Basically, your workers needs to be reserving journey as far upfront as attainable.
In fact, situations that decision for last-minute bookings can all the time come up. However, in case you check out what number of days upfront journey preparations are made on common, you’ll get an image of whether or not you might want to modify your journey reserving processes and/or insurance policies.
8. Variety of journey incident studies
You may have a authorized obligation to maintain your workers secure after they journey. This is named duty of care. To satisfy your obligation of care obligations, you’ll must have journey risk management insurance policies in place that tackle dangers like political unrest, sickness, regional safety issues, and entry necessities.
Take an excellent take a look at the full variety of incident studies over a particular timeframe to gauge simply how secure your workers are after they journey. Plus, be proactive about any further measures you possibly can put in place to make sure their safety during any future business trip.
9. Carbon footprint
Lastly, to fulfill your sustainability objectives, you’ll want a means of measuring your group’s carbon footprint. This entails understanding how a lot CO2 is being launched into the ambiance throughout enterprise journey.
After getting visibility over your carbon footprint, you possibly can establish alternatives for extra sustainable journey. For instance, vacationers may take trains as an alternative of flying at any time when attainable, and will additionally go for public transportation over non-public taxis as soon as they’ve arrived at their vacation spot. TravelPerk’s GreenPerk program permits companies to mechanically calculate the carbon footprint of their enterprise journey program, and attain web zero emissions by investing in carbon offsets.
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