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New Research Identifies Disconnects in Travel Program Goals, Policy and Traveler Behavior

November 15, 2018

ALEXANDRIA, Va.--(BUSINESS WIRE)--Nov 15, 2018--Nearly 70 percent of travel buyers say that enforcing policy compliance is among the most challenging aspects of their job, according to new research out today from the Global Business Travel Association (GBTA) in partnership with RoomIt by CWT. While travelers may book out-of-policy for preferred properties or amenities, there is also a large gap in traveler knowledge of company policy.

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Travelers Might Not Know the Parameters of Their Travel Policy (Graphic: Business Wire)

“Travel program goals can be difficult to reach when travel buyers and business travelers are not on the same page,” said Jessica Collison, GBTA director of research. “The research identifies where disconnects exist between hotel policy and traveler behavior and provides buyers with areas they can focus on to drive increased cost-savings without necessarily compromising on traveler satisfaction. Ongoing communication to keep travelers informed on policy can go a long way toward achieving program goals.”

“Business travelers want to find the right room in the right place with the right amenities – and stay within the rules set by their hotel program,” said David Falter, President of RoomIt by CWT. “At the end of the day both the travel manager and traveler ultimately have similar goals to save money. Travel buyers can do so by offering travelers more choice and increasing compliance.”

Property Levels & Amenities

Reducing program costs, increasing policy compliance and traveler satisfaction top the list of goals travel buyers have for their travel programs in 2019. Travel buyers typically negotiate with a variety of suppliers to provide their travelers with the best possible rates. While the vast majority (78 percent) of business travelers say they are satisfied with their rate allowances for booking hotels, two-thirds (66 percent) also say they would like a higher rate allowance to stay at preferred properties that may better meet their needs.

In fact, U.S. business travelers are more likely book luxury properties, potentially out of policy, according to the research. Only 7 percent of European buyers say they allow luxury properties in their hotel programs compared to 16 percent in the United States, yet on average only 8 percent of UK travelers and 7 percent of French travelers book luxury properties versus 30 percent of U.S.-based travelers. The trend of U.S. travelers booking luxury out of policy may be related to higher dissatisfaction with rate allowance.

Travelers want to use amenities that are not always included in their travel policy, leaving room for increased satisfaction. Over three-quarters of business travelers would prefer to book bundled rates including multiple amenities, even if the rate is slightly higher, however, very few (11 percent) travel programs always allow booking bundled rates. Travelers often book bundled rates with the belief that doing so ultimately contributes to cost-savings goals, although that may not necessarily be the case.

When travelers were asked which amenities they would purchase on business travel if they had no limits within their company policy, they cited several, including premium WiFi, gym passes and food delivery services.

Loyalty’s Role in Booking & Satisfaction

The inability to earn loyalty points could drive traveler dissatisfaction. Nearly three-quarters (71 percent) of travelers believe that if they give up their time to travel, they should have the ability to earn loyalty points and over half (51 percent) would risk being reprimanded for booking out-of-policy if it meant they could book a hotel where they could earn loyalty points.

Loyalty plays a significantly bigger role in the United States as 25 percent of U.S. business travelers say the ability to earn loyalty points is a factor in choosing where to book, and over half (52 percent) say they would never consider booking a hotel where they could not earn loyalty points. This compares to 37 percent in France and 31 percent in the UK.

Methodology

An online survey of 265 travel buyers in the United States (131) and Europe (134) was fielded between September 19 and October 12, 2018. Additionally, a survey was conducted of 750 business travelers in the United States (247), United Kingdom (254), and France (249) using an online panel. This survey was fielded between October 5 and October 15, 2018 with respondents qualifying if they (1) were employed full-time or part-time, and (2) traveled for business more than once in the past year.

More Information

Download an infographic here with key highlights from the research. A summary of findings for the report, Improving Hotel Programs in 2019, is available exclusively to GBTA members here and RoomIt clients here.

Experts from GBTA’s research team and RoomIt by CWT will present study highlights and insights during an education session on November 28 at 5PM CET at the upcoming GBTA Conference 2018 Berlin in Partnership with VDR: The Complete Guide to Improving 2019 Hotel Programmes. Both will be on-hand throughout the conference for interview requests on the study as well.

A webinar featuring the results and what the study means for travel programs will also take place on January 17, 2019 at 9AM ET. Register today.

About the Global Business Travel Association

The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA’s 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit gbta.org.

RoomIt by CWT is the hotel distribution division of Carlson Wagonlit Travel, a long-standing leader in business travel. Every day we match travelers with the right room at the right rate, and every minute we book over 30 hotel rooms. We also provide travelers with the amenities and loyalty programs they want; while helping organizations control their budget and improve travel oversight.

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Companies and governments rely on us to keep their people connected. We provide their travelers with a consumer-grade travel experience, combining innovative technology with our vast experience. Every day, we look after enough travelers to fill more than 260 Boeing 787s and 100,000 hotel rooms - and handle 105 events. We operate in around 150 countries, and in 2017 posted a total transaction volume of more than US$ 23 billion.

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View source version on businesswire.com:https://www.businesswire.com/news/home/20181115005481/en/

CONTACT: Colleen Lerro Gallagher, +1 703-236-1133, cgallagher@gbta.org

Marianne Varkiani, +1 703-236-1164, mvarkiani@gbta.org

Alistair Hammond, +44 771 773 0441, alistair.hammond@carlsonwagonlit.com

Taylor Aaron, +1 612 244 9420, taylor.aaron@carlsonwagonlit.com

KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA

INDUSTRY KEYWORD: TRANSPORT AIR TRAVEL DESTINATIONS VACATION LODGING TRANSPORTATION OTHER TRAVEL

SOURCE: Global Business Travel Association (GBTA)

Copyright Business Wire 2018.

PUB: 11/15/2018 08:03 AM/DISC: 11/15/2018 08:03 AM

http://www.businesswire.com/news/home/20181115005481/en

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