Business travel management and optimization with Key Performance Indicators (KPIs)

In the era of digitization, companies need effective tools to optimize business travel processes and control associated costs. In this context, Key Performance Indicators (KPIs) provide invaluable assistance to travel managers and other individuals responsible for business travel management within companies. We will introduce you to the KPIs that should be used in business travel management to achieve desired results and fulfill the company’s strategic goals.

What are KPIs?

KPIs (Key Performance Indicators) are metrics or indicators used to assess, monitor, and measure specific objectives and results within an organization. They are concrete parameters that allow estimating progress in achieving business goals. KPIs provide clear and measurable data, enabling informed decision-making and adjusting strategies for improving performance.

Building an Appropriate Set of KPIs

Step 1: Determine the Company’s Strategic Goals

The first step in creating a KPI program is to identify the company’s strategic goals related to business travel. Sample goals may include:

1. Reducing costs related to business travel.

2. Increasing the adoption of corporate travel policies.

3. Enhancing employee satisfaction with business travel.

4. Increasing control over travel expenses.

5. Working towards sustainable development and reducing environmental impact.

Step 2: Define Relevant KPIs for Each Goal

For each of the set strategic goals, it is essential to identify relevant KPIs that will allow for effective assessment and monitoring of the achieved results. Sample KPIs may include:

Goal 1: Reducing costs related to business travel.

KPI 1: Number of completed business trips.

Goal 2: Increasing the adoption of corporate travel policies.

KPI 2: Number of delegations that were executed outside the expenditure limits specified in the company’s travel policy.

Goal 3: Increasing the adoption of tools for booking and expense management.

KPI 3: Percentage of business travel expenses made through the preferred travel management platform and self-booking tools.

Step 3: Identifying Key Data Sources

For each KPI, identify specific data sources from which necessary information can be obtained for assessing the results. In this case, reports provided by Travel Management Software like WorkTrips.com, self-booking tools, corporate credit cards, and travel expense management systems are essential data sources.

Step 4: Analyzing the Data

Data collected from various sources should be analyzed, and in the case of results beyond the set KPI ranges, appropriate actions should be taken to improve efficiency and optimize business travel management processes.

Are There Universal KPIs in Business Travel Management?

Each organization should define its own KPIs based on its strategic goals. However, there are some universal KPIs that can serve as a basis for creating a personalized set. Below are a few key KPI categories along with examples.

1. Expenses and Savings:

– KPI: Contract Effectiveness – Percentage of company expenses on business travel resulting from agreements with service providers, such as airlines and hotels.

– KPI: Tool Effectiveness – Percentage of travel expenses managed through preferred travel agents/platforms and self-booking tools.

– KPI: Payment Effectiveness – Percentage of business travel expenses paid using corporate credit cards.

2. Travel Policy:

– KPI: Limit Compliance – Percentage of cases where delegations exceed the set expenditure limits.

– KPI: Travel Planning – Percentage of employees who adhere to established deadlines for submitting business travel requests.

– KPI: Tool Adoption – Percentage of employees using designated tools for self-booking travel services and expense management.

3. Safety and Corporate Social Responsibility:

– KPI: CO2 Calculation – Amount of CO2 emissions related to business travel to monitor environmental impact.

– KPI: Sustainable Travel – Percentage of travel conducted using low CO2 emission means of transportation, such as trains.

– KPI: Traveler Location – Percentage of employees who share their location during business travel and consent to receive real-time safety notifications.

By monitoring and analyzing KPIs, you can significantly streamline the work of travel managers and other individuals responsible for travel organization. Moreover, it helps optimize business travel processes within your company. If you have any questions, please feel free to contact our specialists who will assist you in choosing appropriate indicators, establishing travel policies, and optimizing travel management and expense settlement processes.