Measure These 6 Top Kpis For Travel Management Success

As a travel manager, you have wangle to swathes of employee travel data. Each time an employee travels for business, a huge value of data is created—from how much the trip forfeit 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 management to focus on by ensuring that they uncurl with their travel budgets, overall merchantry 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 moreover to leverage the results and turn them into violating insights to help optimize your travel management program.

So, which KPIs for travel management are most important to measure? Below, we’ll imbricate nine travel management KPIs that are crucial for most organizations.

What Types Of Kpis For Travel Management Should You Be Measuring

Many organizations view measuring travel KPIs primarily as a way to reduce financing or optimize the way they use their travel budget. However, although forfeit savings are important, there are moreover other important factors to consider.

Here are four wholesale types of corporate travel metrics that all organizations should measure:

Financial metrics

These metrics are related to how organizations can save money and protect their marrow line. For example, this category covers KPIs that measure policy compliance, overspend outside of booking tools, total spend, and forfeit savings. Cancellation financing and stereotype spend per vertical (flight costs, hotel costs, etc.) would moreover fall under this category.

Quality Metrics

Quality metrics imbricate KPIs that relate to employee satisfaction. For example, KPIs of this type measure traveler satisfaction, traveler engagement with tried booking platforms, and SLA try-on satisfaction by vendors.

Business Metrics

Finally, merchantry metrics imbricate 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.

Sustainability Metrics

Measuring sustainability metrics is crucial for companies to meet their corporate social responsibility goals. Many regions are commonly 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.

Some examples of sustainability metrics are the value of CO2 stuff produced by merchantry travel, how much of this CO2 is offset, which transport types are stuff used (train travel, air travel, etc.), and whether there are opportunities to make travel increasingly eco-friendly.

9 Top KPIs for Travel Management

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 merchantry travel policy.

1. Booking Tool Adoption

If your visitor 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.

Even though you’re on workbench 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 unexplored the tool as their primary method of making travel arrangements will help you evaluate how constructive the online booking tool is, and the level of ROI you’re getting out of it.

Plus, your booking tool will only show employees tried suppliers that have been included in your corporate travel policy, and are likely to provide you with corporate discounts. To proceeds largest booking visibility, divide the booked and ticketed spend by your total travel spend to discover how well your organization has unexplored your booking tool.

2. Use Of Tried Methods Of Payment

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.

For example, organizations that provide their employees with a visitor credit vellum to imbricate business travel expenses need to know the levels of non-compliance with their payment policy. A travel and expense policy is meant to help organizations alimony occupational fraud at bay, streamline the reimbursement process, and comply with tax office regulations. Plus, having tried payment methods makes it easier to monitor travel spend and identify areas for optimization.

You can measure how well your employees are waxy to your payment policy by dividing your travel-related spend on a visitor credit vellum by your total travel spend.

3. Percentage Of Bookings Made Within Policy

Does your visitor have a corporate travel policy in place? Travel policies are key for staying on top of spending, increasing booking efficiency, and keeping travelers safe.

It’s crucial to understand how many people are booking within policy over time. You’ll moreover want to know the reasons for any policy violations: are managers taking too long to legitimatize merchantry 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 worldly-wise to uncover potential flaws in your company’s travel management program.

4. Savings From Corporate Travel Discounts

Securing corporate travel discounts is a unconfined way for organizations to alimony financing low. While many companies spend time individually negotiating discounts with variegated vendors, there is a largest and easier way to do this. Travel management platforms like TravelPerk often have their own deals with vendors, and offer sectional discounts on travel services (like airline ticket prices, hotel rooms, and car rentals) to all their customers, so they can take wholesomeness of corporate discounts without having to negotiate their own rates.

To measure the percentage your visitor has saved by securing corporate rates and discounts through your travel management platform, take the stereotype market rate and subtract the discounted rate, then divide by the stereotype market rate and multiply by 100.

5. Traveler Satisfaction

Knowing how happy your traveling employees are is key to merchantry 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.

Requiring travelers to take regular satisfaction surveys well-nigh their travel experiences will requite you insight into how well your travel policies are working. Ask them well-nigh their transportation, lodging, expense, and booking experiences to identify areas for improvement.

6. Percentage Of Changes, Rebookings, And Cancellations

Where possible, you want to stave making any changes to bookings since they usually incur steep charges and spare spend.

Take a squint at the percentage of rebookings, changes, and cancellations during a specific period. This will requite you an idea of whether there are unrepealable 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 weightier to reduce the total value of changes made to original bookings.