Cicily Robinson, Director of Consulting, American Express Global Business Travel
In 2016, the total cost of travel is a focus for most travel
managers as the industry climbs out from under the procurement umbrella. It’s
seen as a hugely relevant—and somewhat controllable—spend category that comes
with an unquantifiable set of risks. Those risks include people’s safety and
security; and it’s impossible to put a value on that.
It’s easy to say a company will save money by increasing its
hotel attachment rates because it will. Leveraging power still achieves lower
rates and more accurate forecasts. It’s the human factor, the people, that make
hotel attachment rate so important when managing a travel program more
holistically. Knowing where travelers are at any given point is vital as
companies are essentially responsible for those human beings while on company
business.
Location information that comes with an attached hotel
booking enables a company to act more quickly during an emergency. Without that
information, companies act blindly, creating undue stress and unnecessary costs
associated with locating individuals. The outcomes and potential “cost” of a
major disaster, terrorist attack or health issue can vary wildly. Recent
terrorist attacks in cities with high international travel (i.e., Paris,
Istanbul) are prime examples in which knowing the location of business
travelers in advance will save upwards of 20 hours of tracking per person.
While the travel department can implement parameters
to steer business travelers in the right direction, making those travelers
understand why they should book a hotel through the right channel and actually
getting them to do it is another story. Tools already exists that can send out
notifications to travelers who’ve forgotten or chosen not to book a hotel room.
Some can even require that they book a room before reserving the flight. More
companies will adopt such tools this year. In doing so, they will go beyond
having the right policy. They will drive better understanding, make attachment
easy for travelers, yield immediate savings and reduce obvious risks.