The challenge of travel program leakage poses a significant challenge for travel managers , as it not only undermines travel program policies and controls but also compromises duty-of-care responsibilities and financial oversight.
Transparency is key
Travel program leakage poses a significant challenge for travel managers. Leakage occurs when employees book travel outside of approved channels, bypassing corporate travel policies and resulting in unaccounted expenses. With the disruptions caused by Covid-19, leakage has become more prevalent, undermining cost controls and data capture efforts.
Typically, leakage undermines transparency, complicating duty-of-care responsibilities and financial oversight. The lack of transparency amplifies risks and potential financial losses, highlighting the urgency of addressing leakage within corporate travel programs.
Travel program leakage during a pandemic
The pandemic has exacerbated leakage issues, particularly concerning unused air travel tickets, ticket refunds, and travel vouchers. Disruptions in travel plans have led to the issuance of numerous travel credits and vouchers, often directly to travelers, creating opportunities for out of corporate travel policy bookings. Misuse or misunderstanding of these credits poses significant financial risks, especially when safety concerns are paramount and budgets are constrained.
“About 6% of T&E annually, or about $60,000 for every $1 million in expenses, is out of compliance” CFODive.com
Strategies to reduce travel leakage
To mitigate leakage risks, travel managers must take proactive measures. Firstly, revisiting and refining travel policies is essential to prevent leakage effectively. As most travelers are currently grounded, this presents an opportune time to implement policies that mitigate flight leakage, laying a strong foundation for future travel.
Secondly, gaining transparency over unused tickets and vouchers is imperative. Failure to monitor these assets can lead to missed opportunities, expired credits, and unauthorized bookings. Implementing robust tracking mechanisms, such as our Unused Ticket Tracker, provides visibility into unused tickets, enabling proactive management and prevention of leakage.
Utilizing technology for travel leakage prevention: track vouchers, refunds, and unused tickets
Software solutions (Unused Ticket Trackers) offer comprehensive monitoring of travel vouchers and unused air travel tickets, ensuring full visibility and control over these assets. By tracking and alerting travel managers to unauthorized bookings or misuse, such tools empower proactive leakage prevention strategies.
Optimize your supplier strategy. Discover the power of Oversees’ advanced travel data analytics and reports. Contact us for a demo.
