Are You Still Using Static Travel Policies? Time to Rethink Your Strategy

The static corporate travel policy is dead

Times are changing, and traditional, one-size-fits-all corporate travel policies no longer serve the diverse needs of businesses and their employees. Many companies continue to use outdated, static travel policies rooted in historic pricing strategies that are no longer relevant in today’s dynamic market.

Meanwhile, employees increasingly expect the same level of personalization during business travel as they enjoy when traveling for leisure. Consequently, some may opt to book outside the corporate booking tool, leading to challenges in managing trips, compliance issues with duty of care obligations, and increased costs.

Savvy travel managers are embracing more flexible travel policies, which often result in additional cost savings compared to more rigid ones. Balancing employee satisfaction, retention, duty of care, and cost efficiency is not a contradiction. The desire to blend customer experience with data-driven cost savings lies at the heart of Oversee’s FareSaver.

For those tasked with crafting policies that align with the business and its employees, consider the following factors:

  1. Stay attuned to evolving business needs: In today’s rapidly changing landscape, businesses must remain agile. Adopting a flexible approach to travel can help companies respond promptly to emerging needs, avoiding out-of-policy bookings and ensuring optimal travel options for both the company and the employee. Allowing for flexible fare bookings well in advance and rebooking to more restrictive fares closer to departure can lead to significant savings while maintaining compliance and due diligence.
  2. Acknowledge individual traveler needs: Recognize that not all travel requirements are the same. Employees travel for various reasons, distances, and frequencies, and treating them uniformly may not be the most cost-effective approach. Consider tailoring travel policies based on the purpose and frequency of travel to ensure optimal ROI and minimize travel fatigue.
  3. Adapt travel policies based on geographical considerations: Global companies with diverse structures and multiple locations should customize their travel policies to suit each location or business function. By analyzing fare data for specific and frequently traveled routes, companies can identify travel patterns, evaluate negotiated rates against publicly available options, and adjust policies accordingly to save on travel spend.
  4. Embrace dynamic pricing strategies: Rather than adhering to rigid booking rules, consider leveraging technology to monitor fare fluctuations and rebook flights during price drops. Implementing dynamic pricing policies based on real-time market conditions can ensure that organizations pay the most competitive prices for travel, even if it means booking closer to the departure date whilst ensuring your traveller stays on the same flight, cabin and seat.

By embracing flexibility and innovation in corporate travel policies, businesses can achieve a balance between saving on travel costs and meeting the evolving needs of their employees, all while adhering to corporate travel policies where it makes sense.

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