Penny-pinching travel policies can make employees resentful and unhappy. (Image: Jim Glab)
Does your company impose harsh restrictions on your travel bookings and spending in the interest of saving money? A new study suggests that approach could be costing more than it saves.
The stresses imposed on road warriors by strict company travel policies can result in employees who are disgruntled, less productive, less healthy, and more inclined to seek employment elsewhere according to a new report from the Airlines Reporting Corporation, which processes ticket payments from travel agencies.
The survey of 750 business travelers contrasted the experience of working for companies with “cost-focused” travel policies vs. those with “traveler-focused” programs – i.e., policies aimed at keeping travelers productive and satisfied.
Concentrating on strict cost controls often results in what the report calls ‘travel friction” – i.e., needless frustrations and aggravations on the road that contribute to less effective business results. Examples: requiring travelers to book a less expensive connecting flight when non-stops are available; prohibiting business class bookings on long-haul flights; and limiting hotel choices.
For example, 82 percent of the travelers in cost-focused programs said they sleep much better at home than on the road; only 53 percent of those with traveler-focused programs said so. Likewise, three-fourths of cost-focused travelers said it’s hard for them to maintain a healthy lifestyle when traveling, vs. just 32 percent in the traveler-focused group. Two-thirds of the cost-focused travelers said they sometimes get sick or need time off due to their heavy travel schedules; the comparable rate for traveler-focused programs was just 29 percent.
Asked what portion of their trips they considered to be worthwhile from a business standpoint, those in traveler-focused programs cited 82 percent, on average, vs. 60 percent for those in cost-focused programs.
You can see the full report here.
Tweaks to spending rules can lead to improved productivity on the road. (Image: Delta)
Perhaps most tellingly, three-fourths of the cost-focused travelers said they hoped to be traveling less two years from now; only 35 percent of those in traveler-focused programs said the same.
The report suggested that the biggest drawback of focusing on strict cost controls for travelers is that it can motivate some of a company’s most valuable employees to leave – and replacing them can be extremely expensive.
“Designing a traveler-focused travel program can help companies retain top talent, especially in sales, account management and technical positions with valuable relationships and specialized areas of knowledge,” the report said. “As an added benefit, it also makes the company far more attractive to potential employees.”
The survey asked travelers in both groups what kinds of changes in policy would make their trips easier to take. Here are the results:
Readers: Do you work for a company with a travel policy that is cost focused, or traveler focused? Love it or hate it? Please leave your comments below.
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I can only thank god that I am the company and control how I travel, in what class and what kind of hotel I stay at. Of course I like to save a buck or two, always fly coach on anything under three hours and always fly business/first class on things over three hours.
The last thing I want to do is make myself sick by having to sit in a coach seat with a bunch of people breathing unhealthy air around me. Of course it’s the same with me, I also am admitting some of that unhealthy air too.
The point is you have to make sure that it’s not a very uncomfortable journey and a lot of it is flying on terrible, cheap airlines that cram you in. Same with the hotel, sorry but I am not a motel 6 type of guy. Of course I love a Ritz Carlton or a Four Seasons, but most Courtyard Marriots fit the bill. I also have become a big Hampton Inn guy, love how much they upgraded that brand and made staying in their hotels a great experience.
Companies need to think about things like airline and hotel status that allows frequent travelers to save money when they need to change flights based on customers schedules (when does that ever happen?). Same day flight changes, 24 hour no charge confirmed booking, cancelling or changing hotels within the typical 24 hour change window all add up. Also, a more productive and happy employee is one who can arrange travel to have a more balanced family/work life. That is, direct flights and realistic flight times. Get with it business owners!
Great article. If my company wants me to spend several nights a month on the road, expect me to spend like it’s not my own money. Yes, I could get a pizza slice for $5, but I would rather go work out in the hotel gym then order room service for $40-$50. And if that sort of spending raises eyebrows theres something wrong with your policies.
I work as a Corporate Travel Agent and have done for the past 20 years. I’ve seen all the scams. Booking flights 10 months in advance to use up your budget then canceling them after the start of the new year. People wanting business class for less than 5 hours flying time. As soon as you tell them it needs approval they back down.
my company, my policy. If you work for someone else thats the way it goes
Permitting Econ + seating on domestic flights would be a big win for companies and their employees. Often the only seats displayed on legacy carriers are middle seats. Allowing econ + will enable travelers to often select that option, which is lower cost than a flight on another airline that has non middle seats available.
Hardly. As the study demonstrates, some companies are penny wise and pound foolish.
Agreed! Always spend the company’s money as if it is your own; always spend time during work as if it is your own company.
What a fake photograph! Not a single middle-aged, balding, pot-bellied, plus-sized, spectacles-wearing passenger in sight!
Hard to believe the statistics when the photograph is so unreal 🙂
The ones that complain about their cost focused travel policies are the ones that like to do what they want regardless of cost. If it were their money they would think differently.