Base Tendriling Vacation Expenses

As company journey fees nose upward, organizations are knowing that far better cost-management tactics may make a big difference

US. corporate journey charges rocketed to a lot more going here $143 billion in 1994, in accordance to American Express' most up-to-date study on small business travel management. Private-sector employers invest an estimated $2,484 per personnel on travel and amusement, a 17 % raise over the past 4 a long time.

Corporate T&E costs, now the third-largest controllable expense behind sales and data-processing costs, are under new scrutiny. Corporations are realizing that even a savings of 1 percent or two per cent can translate into millions of dollars added to their bottom line.

Savings of that order are sure to get management's attention, which is a requirement for this type of project. Involvement begins with understanding and evaluating the components of T&E administration in order to control and monitor it more effectively.

Hands-on management includes assigning responsibility for vacation management, implementing a quality-measurement system for travel services used, and writing and distributing a formal journey policy. Only 64 p.c of U.S. corporations have travel policies.

Even with senior management's support, the road to savings is rocky-only one in three providers has successfully instituted an internal program that will help cut travel costs, and the myriad aspects of vacation are so overwhelming, most companies don't know where to start. "The industry of journey is based on information," says Steven R. Schoen, founder and CEO of The Global Group Inc. "Until such time as a passenger actually sets foot on the plane, they've [only] been purchasing information."

If that's the case, information technology seems a viable place to hammer out those elusive, but highly sought-after, savings. "Technological innovations in the small business travel industry are allowing firms to realize the potential of automation to control and reduce indirect [travel] costs," says Roger H. Ballou, president of the Journey Services Group USA of American Express. "In addition, many corporations are embarking on quality programs that include sophisticated process improvement and reengineering efforts designed to substantially improve T&E management processes and reduce indirect costs."

As companies look to technology to make potential savings a reality, they can get very creative about the methods they employ.