Supplier costs are a concern, but corporate travel managers remain focused on business intelligence and service

In a recessionary economy, corporate travel departments have worked hard to cut costs while maintaining service standards for their travelers. A survey of 147 corporate travel professionals conducted by AirPlus International shows that even while under extreme budget pressure, corporations must stay focused on how to keep their travel programs effective — and they are willing to invest in products and services that are central to that effort.

The survey shows that travel departments consider criteria beyond savings opportunities and cost in every major supplier category. More importantly, it is clear that service and other considerations consistently trump cost and savings when sourcing certain types of suppliers.

Data reporting is the most significant standout, far outweighing cost and savings opportunities criteria when respondents choose partners in two supplier categories: travel management company and payment solution. Only 43 percent of respondents indicated that cost was among the company’s most important considerations when choosing a TMC. Savings opportunities were important to only 53 percent of respondents. Rather, more than 72 percent of survey respondents indicated that they looked for experienced TMCs that can provide their travel department with the data they need to make smart decisions about travel program tactics and strategies.

 

The payment category tells a similar story, with data reporting/compatibility outpacing cost considerations by about 21 percentage points. Nearly 53 percent of respondents indicated the importance of good data reporting when shopping for a payment solution. Convenience, often expressed in terms of the number of merchants where the card can be used, ran a distant second at about 39 percent, while cost and savings were less important to corporate travel professionals.

Product and service excellence proved an interesting criteria. It far outranked cost considerations for TMC partners with a gap of more than 20 percentage points. It narrowly outpaced cost by just 1.5 percentage points in the hotel category. In all other categories, it fell short of cost and savings considerations by a fair margin.

Download the full report for complete results:
AirPlus… The Wire July 2009 (PDF, 267 KB)