ExpertFlyer Hot Topics — Where the Rubber Meets the Runway
It’s a popular misconception that companies will lose out on business travel discounts if they use an open travel platform. Finding a company who provides business rates with an open booking platform is tricky. Even harder to find is one paying cash back on just about every booking, every flight, every hotel, and every rental.
ExpertFlyer caught up with Shannon Fore, Director of National Accounts at Global Travel for Business, a unique unmanaged business travel booking engine that purports to provide a wealth of travel product and cash back incentives. According to Fore, there is no doubt a cost associated with traditional managed travel. Some companies charge per employee, per month, some charge a flat annual fee based on corporate size, as well as reporting capabilities. For example, many managed travel companies charge a per transaction service fee of $25-$55. So, if a company does 3,000 transactions a year this amounts to a bill of $165,000 just to pick up the phone! The determining factor in whether or not this Managed platform cost is worth its weight in gold can be summed up in terms of savings. Do the savings outweigh the costs?
Fore says, based on her research, that unmanaged travelers spend a third less per trip compared to managed travelers. It was also determined that unmanaged or open travel bookers experienced a higher level of employee satisfaction since, in fact, they were in charge of their trip — down to seat choice, hotel choice and carrier choice. The alternative is being at the mercy of a managed travel booker who carries the purse strings, as well as criterion which goes with there company travel policy.
Faced with increasing travel costs, tax hikes, fuel surcharges and the like, companies are urgently looking for savings opportunities more than ever. Seems like now’s a good time to explore options, such as open travel platforms that have no set up fee, no transaction fees and no monthly service fees.