As a travel manager, you have access to swathes of employee travel data. Each time an employee travels for business, a huge amount of data is created—from how much the trip cost and how it was booked, to which vendors were used, and how closely the trip complies with your corporate travel policy.
All of this data provides you with the insight you need to track key performance indicators (KPIs) for travel management. Usually, organizations will decide which KPIs for
travel managementto focus on by ensuring that they align with their
travel budgets, overall business travel goals, and travel industry benchmarks.
It’s your job to not only establish and monitor the right travel management KPIs for your organization but also to leverage the results and turn them into actionable insights to help optimize your travel management program.
So, which KPIs for travel management are most important to measure? Below, we’ll cover nine travel management KPIs that are crucial for most organizations.
Here are four broad types of corporate travel metrics that all organizations should measure:
Some examples of sustainability metrics are the amount of CO2 being produced by business travel, how much of this CO2 is offset, which transport types are being used (train travel, air travel, etc.), and whether there are opportunities to make travel more eco-friendly.
Even though you’re on board with the travel booking solution, how many of your traveling employees are using other booking channels to make travel arrangements? Measuring the percentage of employees who have fully adopted the tool as their primary method of making travel arrangements will help you evaluate
how effective the online booking toolis, and the level of ROI you’re getting out of it.
Plus, your booking tool will only show employees approved suppliers that have been included in your corporate travel policy, and are likely to provide you with corporate discounts. To gain better booking visibility, divide the booked and ticketed spend by your total travel spend to discover how well your organization has adopted your booking tool.
For example, organizations that provide their employees with a company credit card to cover
business travel expensesneed to know the levels of non-compliance with their payment policy. A
travel and expense policyis meant to help organizations keep occupational fraud at bay, streamline the reimbursement process, and comply with tax office regulations. Plus, having approved payment methods makes it easier to monitor travel spend and identify areas for optimization.
You can measure how well your employees are adhering to your payment policy by dividing your travel-related spend on a company credit card by your total travel spend.
It’s crucial to understand how many people are booking within policy over time. You’ll also want to know the reasons for any policy violations: are managers taking too long to approve business trips, causing them to go up in price? Is the policy too strict? Or are travelers booking their trips too last-minute? By observing trends in the data, you’ll be able to uncover potential flaws in your company’s travel management program.
To measure the percentage your company has saved by securing corporate rates and discounts through your travel management platform, take the average market rate and subtract the discounted rate, then divide by the average market rate and multiply by 100.
Requiring travelers to take regular satisfaction surveys about their travel experiences will give you insight into how well your travel policies are working. Ask them about their transportation, lodging, expense, and booking experiences to identify areas for improvement.
Take a look at the percentage of
rebookings, changes, and cancellationsduring a specific period. This will give you an idea of whether there are certain times of the month or year when changes to bookings occur, whether they can be attributed to specific departments, and what reasons were given for the changes. From there, you can consider how best to reduce the total amount of changes made to original bookings.
Of course, scenarios that call for last-minute bookings can always arise. But, if you take a look at how many days in advance travel arrangements are made on average, you’ll get a picture of whether you need to adjust your travel booking processes and/or policies.
Take a good look at the total number of incident reports over a specific timeframe to gauge just how safe your employees are when they travel. Plus, be proactive about any extra measures you can put in place to ensure their
safety during any future business trip.
Once you have visibility over your carbon footprint, you can identify opportunities for more sustainable travel. For example, travelers could take trains instead of flying whenever possible, and could also opt for public transportation over private taxis once they’ve arrived at their destination. TravelPerk’s
GreenPerk programallows businesses to automatically calculate the carbon footprint of their business travel program, and reach net zero emissions by investing in carbon offsets.