Corporate Business Travel
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Corporate Business Travel
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Rescooped by Richard Stern from Gapeseed Consulting!

Business Travel is different from personal travel 

Research has shown that, in many organisations, Travel expenditure is one of the top 3 items in controllable expense. This means that, particularly at times of business activity downturn, travel expenses can be one of the first areas to be cut back.

This Insight provides food for thought for management as to how Travel expenditure may be monitored and controlled throughout the business cycle. We at Gapeseed consulting believe that the aim should be to provide value, rather than just cut cost. As an example, rather than move from Business Class on air tickets to Economy as a first step, shrewd negotiation can reduce the Business Class fares, through discounts taken at point of sale. However, the ‘Best Fare on the Day’ (such as. the lowest fare made available by an airline for the day of travel) approach may be beneficial. If that isn’t felt to be sufficient, then the move to Economy may be inevitable, still using ‘Best Fare on the Day’. However, do define what is meant by Economy! If looking at the total cost of travel (100%), the cost of the Travel Management Company (TMC) is around 5%, the internal process costs (authorisation, booking, payment and so on) around 3% - that leaves 92%, the cost of the air tickets, the room charges and so on. This is the area of maximum opportunity to save cost, whilst obtaining value.


The experienced and well trained travel consultants provide cost effective and "value for money" travel solutions by making use of their on line and offline technological tools, business insights and consulting experience in the business travel industry.

Gapeseed organizes group participations at international and national congresses, exhibitions and meetings (MICE) worldwide. The company implements all services involved in the delegate participation, from hotel accommodation and travel services to transportation, cultural program etc.

Additionally, Gapeseed has a very wide network of suppliers and partners on a worldwide scale which allows its experts to offer immediate solutions at any destination as well as achieve best possible rates through their negotiation practices.

Some of the key things to remember for controlling your travel cost

Travel Policy

Why have one?  It is vitally important that companies improve value from money spent on travel and a travel policy is the cornerstone on which good procurement can achieve that objective. It has been said that a well-documented, well-implemented, well-monitored policy can reduce travel costs by at least 10% and by up to 30%. Experience has shown that travel suppliers will tend to give their best deals to those companies who can demonstrate an ‘effective’ Travel Policy.

Who should write your travel policy?

Travel Policy should be written by the person who is responsible for the procurement of travel within the organisation or an experienced Corporate travel planner organization should be comsulted to draft one based on your organization culture and need.

It should be

  • Reasonable
  • Empowered
  • CSR
  • Seek Alternatives
  • Keep it simple

Making it happen is the toughest part. An organisation can have the best travel policy on paper but its usefulness is only as strong as the traveller’s awareness of it.

Supplier negotiation – skills required Generally, it is fair to say that the fewer suppliers the better and that well-developed buying functions spend little time on administration and clerical functions but more on negotiating long-term relationships, developing suppliers, concentrating on total acquisition cost reduction, adding value and developing partnerships – very much mutual v. transactional relationships.

Negotiation involves:

  • communication - written and verbal
  • Identifying, agreeing and pursuing objectives
  • having a good script and environment
  • assessing the other party’s position (information is power)
  • bargaining concessions for advantages
  • wanting to reach agreement
  • agreeing agenda and rules
  • making sure the correct people are negotiating
  • identifying issues and problem areas
  • trying to resolve easier differences first
  • bargaining firmly on serious differences, encouraging concessions
  • giving way on low priority items to gain high priority matters
  • Effective use of silence
  • suggesting ways of meeting your needs at low cost to the other party
  • looking for signals of readiness to concede
  • confirming agreements as they are reached

Summarising the results of the negotiation. In travel, the buyer needs to have the correct management information to back up their negotiation and preferably some benchmarking to set the parameters for the range which they negotiate. Management

Make sure your Corporate Travel Management company

  • pays careful attention to your travel management brief
  • are flexible in their recommendations; independent and supported by competitive rates both locally and globally
  • present a proposal in consultation with you and focus on achieving a positive return on investment
  • believes that they offer the market's leading Service Level Agreement through
  • partner with the best corporate travel technology companies with guaranteed research and ongoing investment
  • partner with Travel Risk Management experts to ensure compliance to the National Health & Safety legislation
  • regularly discuss and review working relationship with you via a pro-active and dedicated account manager
  • Evolve your travel program with your business and the market place to drive corporate travel savings.



The business travel market has evolved dramatically in the last 20 years and will continue to do so. The procurement specialists, who have appeared more and more to be deciding strategy, will need to keep abreast of these changes. There is more emphasis on end to end process solutions from travel booking services, expense claims and payments. The challenge is in implementing the most cost and time effective solution for your organisation.

Via Gapeseedconsulting
Richard Sterns insight:

Business Travel is different than personal travel. Many companies can provide Travel Management but the real difference is the people that work for these companies. You will do well with skilled consultants that know your company and provide a personal approach. GTI Travel has a high customer retention rate because our customers get this approach along with ability to cut costs and give value.

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Suggested by Carl Kohler!

Airlines Collecting Less Money For Bag Fees

Airlines Collecting Less Money For Bag Fees | Corporate Business Travel |
U.S. airlines raised $3.35 billion from bag fees in 2013, down 4 percent from 2012 and the biggest decline since fees to check a bag or two took off in 2008.
Michael Kabos insight:

The airlines are quite greedy. It all began when they started collecting luggage fees & no one complained or stepped in from  FAA. Even worse the consumers did not complain. So it took a matter of weeks for most airlines to match the luggage fees. Once that began, they started raising fares, meals, premium seats. Fares have been climbing absurdly. So we have an industry that for decades lost money (yes paper losses) that now sees they can charge whatever they want. It is interesting that we were deregulated  in 1978. I wonder if it is time to revisit reregulation. All these mergers and the only ones paying all these increases, increased luggage and new fees are the TRAVELERS.    

Not so good for the consumer IMO.

Richard Stern's curator insight, May 7, 2014 8:38 AM

This is a very interesting article. It is difficult to keep up with the new fees that you may incur as a traveler. The airlines keep moving the cheese to make new profits. With mergers and acquisitions in this industry it seems to be more frequent than ever.

Patrick Wallace's comment, May 7, 2014 2:13 PM
It really does seem never ending, the airlines finding more and more items to charge the traveler for. It appears to me that client satisfaction weighs less on their minds!
Rescooped by Richard Stern from The Insight Files!

China adds corporate travel to its world's biggest checklist

China adds corporate travel to its world's biggest checklist | Corporate Business Travel |

An Amadeus study into APAC corporate travel says that 2015 will be the year when businesses in China spend more on travel than those in the US. China already spends $250 billion a year on corporate travel, and the study tips this to jump to $500 billion by 2025. The APAC region generally will see stellar growth in business travel - up from $400 billion this year to $900 billion in 2025. Amadeus says that a lot of the growth will come from emerging South East Asian markets such as Indonesia, Thailand, Malaysia and the Philippines as well as the usual suspects China and India. Find out more.

Via Tourism Australia
Richard Sterns insight:

 The most trusted source of advice comes from peers and colleagues rather than the general sites. If the reviews from peers and colleagues can be integrated into the booking tools, then lookers of the reviews might become bookers of the travel.

Our customers tend to stay with GTI Travel for long term. Part of the reason is expertise and being in this ever changing market for over 42 years. Reviews from booking tools will help but actual booking should be done by an expert.

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