In the return to business travel, consider the "three-legged stool"

Any illusions the corporate travel industry might have held of a smooth and steady return to business travel post-COVID-19 will have dissipated by now.

Today, we’re seeing great variation in the rate of return to business travel by region, by industry and by type of trip.

Some companies have OK’d domestic travel but halted international travel for the rest of the year. Other organizations are looking to government restrictions for a lead, which means staying on top of varied responses from open borders, to select travel corridors, to mandatory quarantines, to the ban of travelers from certain regions or countries.

There’s also a broad spectrum of individual traveler sentiment, with some road warriors raring to get back in the air and others still uncomfortable with the idea of traveling for the foreseeable future. 

All that is to say that in the current environment, nobody can pinpoint with any certainty what travel volumes will look like, though predictions are available via resources like BCG's Travel Recovery Insights Portal and J.P. Morgan research.

What’s more certain is that as business travel resumes, three things will likely be top of mind priorities for every organization when it comes to business travel:

• Cost management
• Risk management
• Change management

Like a three-legged stool, each consideration is critical. Eliminate one of the “legs” and the stool won’t work.

Neglect cost, risk or change management and you can expect substantial issues to crop up in your travel program, or at worst, your travel program may simply fall over.

Why is each so essential in a COVID-19 environment?

Cost management. When it comes to costs, it’s all relative. It’s fine to focus on the relative cost of one fare to another in normal times. But most organizations will be returning from a near-zero-dollar spend on travel. That means every proposed trip and every expenditure to go along with it will now be scrutinized like never before - and compared to zero, everything looks costly. Understanding spend against budget, in real-time, is key to making this work.

Risk management. This part of the equation needs less explanation - traveler well-being is absolutely top of mind for most organizations and with the risk of getting sick, getting those around you sick or getting stranded in a country or region should infection numbers suddenly spike, managing those risks to ensure traveler well-being and duty of care are at the core of the must-haves to get people moving again safely.

Change management. Everyone will have had a bit of forced change management as a result of the pandemic, and there will continue to be significant impacts moving forward. Travelers will be navigating a much more unpredictable landscape of schedule changes and disruptions, and this means that programs will have to do whatever they can to adapt to both support travelers and ensure the company’s spend is looked after. Cancelled air tickets and credits which proved to be such a headache early on in this crisis need to continue to be effectively tracked and used as much as possible.

Underpinning these three requirements is a fundamental prerequisite for corporate travel to be booked through a managed sales channel. Flights or hotels booked directly on airline or supplier websites make it almost impossible for organizations to effectively and efficiently address cost, risk or change management.

Corporate travel policy compliance and adoption of online booking tools has therefore never been more important. So, what should corporate travel managers consider as they begin to modify travel policies and ready themselves for business travel to return?

• Determine how trip authorizations will be granted. This can be assigned based on trip parameters. For instance, while low-risk travel such as domestic trips can follow a standard authorization process, high-risk or international travel could require multiple approvers such as regional leaders or human resources to minimize risk.
• Monitor high-risk zones to restrict travel to those areas. Work with your risk management provider and OBT to see if it’s possible to deactivate booking requests to specific airports, cities or countries, and reactivate them as conditions return to acceptable levels for travel.
• Review traveler tracking capabilities to identify potential risks. Contact your travel management company to get a refresher on their traveler booking technology and/or what is available through your OBT. As conditions change rapidly around the globe, make sure to monitor any travelers heading into potentially risky areas that may have been safe when the booking was originally made.
• Stay on top of supplier health and safety measures to communicate to travelers. Airlines across the globe are increasing booking flexibility and putting processes in place such as greater seat spacing, enhanced cleaning measures and health screenings, among others. Follow up with your TMC and OBT to see what information is available to help travelers make the best choice and to feel safe and protected when they fly.
• Maximize the use of airline credits. The cascade of unused airline credits as a result of canceled flights have been a well-documented issue facing travel managers. Ask your OBT about the ability to incorporate those credits into the online booking flow to easily apply unused tickets and credits for the next booking and reduce the risk of lost fares.

As organizations across the globe begin to send employees traveling again, cost management, risk management and change management are going to be essential to consider now and in the future.

Taking some of the steps outlined above can help travel managers address these considerations effectively and efficiently.