August 27, 2013

Out-of-policy travelers cost companies thousands per traveler annually


U.S. business travelers who work for organizations with managed travel programs but book outside of policy on average spent $2,881 more per year than did "in-policy" travelers, according to a survey by the Global Business Travel Association and Concur.

The study defined "out-of-policy" travelers as those who "did not use the company's preferred reservations tool, chose a higher class or more expensive options that were out of policy for their company." Of the 869 U.S. business travelers surveyed, about 59 percent met this criteria for at least one major expense on their most recent trip, according to the presentation.

The study extrapolated the higher spending levels of these travelers—especially on hotels—across their average travel time during a full year to generate the $2,881 annual figure.

Out-of-policy travelers on their most recent trip spent an average of $232 more on lodging than did in-policy travelers, based on an average four-night stay, a full day longer than the average in-policy stay, according to the study. Per night, out-of-policy travelers on their most recent trip on average spent $210, $58 more than in-policy travelers. Extrapolated to a full year, this figure on average would total $2,877 more per out-of-policy traveler than the average in-policy traveler.

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