It’s far from a new problem. Your organization expects traveling employees to book hotel rooms according to the travel policy and using designated tools. The travelers may have other ideas, preferring to use their favorite booking platforms. This results in hotel leakage – when hotel bookings are made outside of policy – and that poses threats to the travel program. From there, a ripple effect: higher costs, safety concerns, dissatisfied travelers, weakened negotiating power, and fragmented data.
Understanding why this happens and how to address it is crucial for optimizing travel programs.
What risks do companies face when travelers book outside of the travel policy?
Data and intelligence
When travelers disregard the booking policy, your organization potentially misses out out on comprehensive business intelligence that could enhance your program. That loss of valuable hotel volume diminishes your negotiating power with preferred suppliers. More reservations within the program means more data for your TMC. When your TMC has a complete picture of spend, it helps leverage negotiations and agreements. The average booked rate for high-volume locations can aid in sourcing negotiations.
Duty of care
You also lose oversight of your travelers’ experiences. Third-party websites may not be PCI compliant or approved by your security team. The disconnect can also hinder your ability to provide timely assistance to travelers during a risk event. Booking through the TMC ensures support from operations teams and mitigates these risks. Even if you are collecting hotel (and air) booking data from different channels, consolidating this information can be time-consuming – time you may not have in an emergency.
4 reasons why business travelers book outside of the program
Travelers book outside of the designated travel program for several reasons, including their booking sources preferences, lack of awareness about business agreements, and insufficient enforcement of travel policies.
- “I can find better prices on my own – and collect points.” Many travelers prefer familiar booking sources, finding them easier to navigate. They perceive that they can find better prices elsewhere. Loyalty points are a significant concern, as travelers worry they might not receive the points and recognition associated with their preferred hotel chain if they book through the travel management company (TMC) or online booking tool (OBT). Cultural norms and previous relationships with old agencies can also play a role.
- “I didn’t even know we had a travel policy.” Some travelers are unaware of the business agreements with TMCs, leading to a lack of knowledge about available systems and processes. Educating travelers about these agreements is essential to debunking the idea that they find better prices elsewhere. Employees, whether new to the job or seasoned, need a full picture of how the travel program supports overall company goals. Introducing the travel policy early builds transparency. Regular reminders about the program can reduce instances of policy violations.
- “The company won’t know or care how I book my hotel room.” Often, travel policies lack enforcement, leading travelers to unknowingly expose themselves and the company to cost and risk consequences. They may be unaware how hotel leakage – and the resulting lack of visibility into an itinerary – can affect an organization’s ability to support them during a risk event occur, whether it’s bad weather, a lost wallet, or a larger concern.
- “I don’t work directly for that company. I don’t know the rules.” Non-profiled guests, those travelers who are not employees or regular users of the program, may not think twice about established guidelines and booking processes for hotels, simply because they don’t know enough about them.
The benefits of compliance for business travelers
When business travelers comply with hotel booking policies, they can enjoy several benefits:
- 24/7 traveler support: Travelers have access to round-the-clock support, ensuring assistance whenever needed.
- Varied hotel content and rates: Companies can provide their travelers with a wide range of hotel options, including rates from major third-party aggregators like Booking.com and Expedia.
- Loyalty discounted rates: Loyalty rates from seven major chains – Marriott, Hilton, IHG, Accor, Radisson, Sonesta, and Hyatt – are included, ensuring travelers receive their loyalty benefits.
- Access to TripSource®: BCD clients can use TripSource to effortlessly find what they need through shopping, booking and service features that drive spend management and keep the traveler in program. Travelers have the flexibility to search for and book the best rates and fares, with clear policy guidance and the same content, payment settings, and policies they would receive from an agent. This ensures a consistent and seamless experience, regardless of the booking channel.
- Easy expenses (BCD PAY): Speaking of spend management, BCD Pay’s simplified expense management makes the process hassle-free.
Tips for getting travelers to book hotels inside the travel policy
Source smartly. The foundation of your travel program is sourcing hotel content (properties and rates) effectively. Collaborate with professionals to source hotels using data from travel management companies, suppliers, credit cards, expense providers, and more. Enhance your insights by combining this information with advanced analytics and market rate and availability audits. This data-driven approach helps you understand how travelers are booking hotels and the financial impact on your program. With this knowledge, you can create a comprehensive and accurate roadmap to strategically improve hotel sourcing.
Leverage dynamic hotel pricing. Today’s hotel market is dynamic, and your management practices need to be as well. Use real-time negotiated rate audits and analytics-driven insights to understand and influence travel patterns and traveler behavior By using dynamic performance management, you can make timely adjustments to your hotel program, increasing savings and reducing risks. This approach allows you to seize opportunities as they arise, rather than missing them.
Give travelers the right content. Hotel booking aggregators, online travel agencies, and direct booking sites often claim to offer more content and lower fares. However, no single source can match the breadth of content provided by a partner that aggregates across all these platforms. To attract your travelers, show them that your program offers the content they expect at the best rates – all in one place. This seamless booking experience saves them time and simplifies expense filings, encouraging them to return to your company hotel program repeatedly.
Give travelers tools they love. Corporate travel programs have historically struggled to replicate the consumer booking experience, driving travelers to non-compliant, user-friendly sites. Today, tools like TripSource® offer intuitive functionality modeled on consumer technology. By booking through TripSource, travelers access relevant in-program content, ensuring they get the options they want at the best prices. When evaluating tools, prioritize a seamless user experience across devices, professional images, easy property comparisons, simple booking processes, and itinerary integration.
Know where your travelers are. In the event of a crisis, seconds count. Knowing where your travelers are lets you provide them immediate assistance and full duty of care. Locating travelers quickly and precisely is most difficult when travelers book through channels that aren’t connected to your program. On the other hand, helping travelers in need is easiest when air and hotel data reside with a single partner. When your travelers understand that booking through the corporate hotel program means you’ll have their back in an emergency, they’ll do it.
Win over your travelers. Offering the best content and tools is not enough; active engagement is crucial. A unique Traveler Engagement offering, via our Advito consultancy, can help inform travelers of their company policy and continue to encourage them to book in program. Travelers will be made aware of how booking within the program saves time, enhances safety, and supports company goals.
For help stopping out-of-policy bookings, BCD clients should contact their program manager. Not a client? Contact us.
