In a striking revelation, a recent BCD Travel survey has exposed a significant compliance gap between corporate travel policies and traveller behaviour. Despite over half of travel buyers asserting their travel policies are highly effective, an alarming 67% of business travellers still book outside these guidelines, posing potential cost and risk issues for companies.
The Compliance Conundrum
A comprehensive survey by BCD Travel, which gathered insights from over 1,200 business travellers globally, highlighted a stark contrast between policy awareness and adherence. Although more than 95% of travellers know where to locate their company’s travel policy, and 90% have consulted it, compliance remains a critical issue. A noteworthy 80% have referred to the policy within the past year, yet only half are satisfied with its provisions.
Craig Bailey, President of Americas at BCD, remarked, “Our survey results indicate a lower inclination among travellers in North America to consult their corporation’s travel policy compared to those in APAC and Europe. This could lead to increased out-of-policy bookings, resulting in higher costs and potential risks. Moreover, a lack of awareness about policy updates can undermine organizational goals, including sustainability efforts.”
Frequency of Policy Communications
One contributing factor to this compliance gap is the infrequency of travel policy communications. A quarter of APAC travellers reported frequent updates about their travel policies, compared to just 15% of their North American counterparts. This disparity in communication could explain the higher rate of policy adherence in APAC.
Challenges of Out-of-Policy Bookings
The survey revealed that over two-thirds of travellers deviate from their company’s travel policy. Common reasons include client meetings necessitating out-of-policy transportation or accommodation and booking for conferences and events with non-preferred suppliers. Consequently, these deviations often require additional approvals, complicating the travel process.
Companies can enhance compliance by actively engaging employees and incorporating their feedback into policy design. BCD suggests that integrating user-friendly solutions with robust data insights can influence traveller behaviour positively. Their TripSource® booking and trip management tool is designed to ensure compliance by displaying client-specific travel policy guidelines at the point of sale, triggering timely policy reminders, and providing essential policy details and safety resources.
Demand for Greater Flexibility
The survey also found that 21% of travellers believe their company’s travel policy is too restrictive, and 30% desire more flexibility in booking transportation and accommodation. A quarter of respondents indicated that higher spending limits and additional air travel options would improve their compliance, while 20% expressed a need for more policies addressing traveller well-being.
“When companies understand their travellers’ needs, they can make meaningful policy adjustments,” Bailey advised. “Surveys are an effective way to gather this feedback. A well-crafted travel policy should set travellers up for success, aligning with company goals while accommodating employees’ needs. This balance helps maintain budget compliance and clear communication.”
Impact on Employee Retention
Interestingly, only 8% of surveyed travellers said the travel policy influenced their decision to accept a job offer. However, 25% acknowledged that it impacts their willingness to stay with their current employer. This influence varies by region, with nearly half of APAC travellers indicating that travel policy affects their job retention decision, compared to 27% in EMEA and 21% in North America.
Bailey emphasized the importance of introducing travel policies during onboarding, saying, “New hires are eager to learn and understand company practices. It’s crucial to explain the travel policy’s significance in terms of cost savings, duty of care, and sustainability. This early education can foster better compliance and appreciation of the policy’s role in achieving organizational goals.”
A Call to Action for Travel Managers
Travel managers play a pivotal role in bridging the gap between policy and practice. By frequently communicating updates and engaging travellers in policy design, companies can achieve higher compliance rates. Additionally, utilizing tools like BCD’s TripSource® can ensure that travel policies are followed, enhancing overall travel management efficiency.
For a detailed look at the traveller survey report, click here.
Written by: Kanda Limw
