Measure these 9 top KPIs for travel management success
Many organizations view measuring travel KPIs primarily as a way to reduce costs or optimize the way they use their travel budget. However, although cost savings are important, there are also other important factors to consider.
These metrics are related to how organizations can save money and protect their bottom line. For example, this category covers KPIs that measure policy compliance, overspend outside of booking tools, total spend, and cost savings. Cancellation costs and average spend per vertical (flight costs, hotel costs, etc.) would also fall under this category.
Quality metrics cover KPIs that relate to employee satisfaction. For example, KPIs of this type measure traveler satisfaction, traveler engagement with approved booking platforms, and SLA agreement satisfaction by vendors.
Finally, business metrics cover return on investment (ROI) and productivity KPIs. For example, organizations can measure trip success rate, productivity rate, and the impact on travel within departments to gauge how successful their travel program is.
Measuring sustainability metrics is crucial for companies to meet their corporate social responsibility goals. Many regions are frequently releasing new environmental legislation, such as the Corporate Sustainability Reporting Directive (CSRD) in the European Union, and organizations should be tracking sustainability KPIs to stay compliant.
Now that we’ve covered the most important travel management KPI categories, below, we’ll go through nine KPIs that your organization should measure to evaluate the effectiveness of its corporate business travel policy.
If your company has invested in a booking tool or a full-service travel management platform, you likely did so with the intention of streamlining processes, ensuring compliance, and, importantly, making savings on corporate travel.
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Much like your booking tool, it’s important to get a handle on how compliant your employees are with the forms of payment they’re using.
Does your company have a corporate travel policy in place? Travel policies are key for staying on top of spending, increasing booking efficiency, and keeping travelers safe.
Securing corporate travel discounts is a great way for organizations to keep costs low. While many companies spend time individually negotiating discounts with different vendors, there is a better and easier way to do this. Travel management platforms like TravelPerk often have their own deals with vendors, and offer exclusive discounts on travel services (like airline ticket prices, hotel rooms, and car rentals) to all their customers, so they can take advantage of corporate discounts without having to negotiate their own rates.
Knowing how happy your traveling employees are is key to business success. If they aren’t happy with their travel experiences, their unhappiness is likely associated with your corporate travel program and policy. As with other areas of business, when employees are unhappy, retention rates are likely to plummet.
Where possible, you want to avoid making any changes to bookings since they usually incur steep charges and additional spend.
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Booking ahead saves organizations money, and generally offers more flexibility and choice with travel arrangements. In general, your employees should be booking travel as far in advance as possible.
You have a legal obligation to keep your employees safe when they travel. This is known as duty of care. To fulfill your duty of care obligations, you’ll need to have travel risk management policies in place that address risks like political unrest, illness, regional security concerns, and entry requirements.
Finally, to meet your sustainability goals, you’ll need a way of measuring your organization’s carbon footprint. This involves understanding how much CO2 is being released into the atmosphere during business travel.
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