July 9, 2023

Your Future Travel Policy up for review?

Are you ready to give me the opportunity to help you with your business trips? - ENG

Contact me and let`s start the process

Er du klar til at give mig mulighed for at hjælpe dig med jeres forretningsrejser? - DK

Kontakt mig og lad os starte processen

Ole Hammer Mortensen

Ole Hammer Mortensen

We gather knowledge from around the world and bring it to you and your business - ENG

Ole Hammer Mortensen

Ole Hammer Mortensen

Vi samler viden fra hele verden og bringer den videre til dig og din virksomhed - DK

Share This Post – ENG:

Share This Post – DK:

For a while now, I have been reading and listening to numerous skilled and experienced individuals who have been involved in business travel for decades. Exciting opportunities and solutions have emerged regarding the elements that should be included in a travel policy. Overall, more emphasis is being placed on simplifying existing policies while leveraging the technologies and work opportunities that technological advancements have brought and will continue to bring to future workplaces.

Here are some ways to improve the travel policy:

  1. Ensure that the travel policy reflects the company’s values and goals. Ingvar Kamprad articulated this well when he explained that he used inexpensive hotel rooms because if he were seen entering or leaving a Hilton hotel during negotiations with manufacturers, he would not be able to secure the lowest price. If you come from McKinsey, where the hourly rate is high, you should have the ability to change the ticket and travel earlier. Remember that the travel policy sends a signal to the entire organization as it involves and affects stakeholders from all employee groups.
  2. Consider the entire journey as a project, not just separate elements such as flights, trains, accommodations, car rentals, and meals. This way, you can engage in a dialogue about the value of the investment, both in financial and operational terms. It could involve sales, procurement, brainstorming, physical work, or maintaining connections and contacts.
  3. Of course, negotiate favorable conditions with relevant suppliers, but analyses have shown that direct financial travel costs only constitute 15-20% of the total direct and indirect expenses.
  4. Listen to the travelers and conduct brief surveys before and after the trips, including the purpose and ROI, the quality of suppliers, and good ideas that can be shared with colleagues.

There are various opinions about non-physical communication. Most available systems have been upgraded and work flawlessly. It is clear that much depends on the network, and this should be considered. We already know that at least 25% of physical trips before Covid-19 were wasteful. Let this be part of the assessments, while also considering that the recipient would actually prefer a brief and concise meeting instead of being a host.

There will always be a need for physical meetings. Social gatherings within the company, brainstorming sessions, and important meetings with clients and suppliers.

For individual employees with families and a permanent residence, travel is part of the domestic market. As citizens of a country, religion, local legislation, culture, and population structures influence all decisions, even if you are part of a global company. Even digital nomads come from a country and its culture.

The business travel industry still operates on technological solutions created 50-60 years ago. During a webinar, a participant from a global travel management company mentioned that it’s what works and that new technology is complicated because it needs to be tailored to local market conditions. This is precisely what needs to change: For the individual traveler, the domestic market, local suppliers, language, and culture are crucial. Germany is currently lagging behind in credit card usage, and in Italy, only a small percentage of the population speaks English. There are many different management cultures, and in many countries, family holds significant importance.

Therefore, the focus should be reversed, and local (perhaps regional) solutions for airlines should be found using global technology products (e.g., APIs). There will be numerous APIs that need to communicate with each other if it’s for a global company, but it’s not fundamentally different from a company’s own production and products. The benefits for each airline would be immense since they are already more reliant on the domestic market than in previous decades.

In a world of severe climate change, there is currently a focus on traveling in an environmentally friendly manner. Remember that, unlike an individual’s annual carbon footprint (12-16 tons), a flight increases it by many kilograms. An overseas trip could mean an increase of 1-3 tons, and even shorter trips can result in several hundred kilograms of CO2 emissions.

The physical and mental costs associated with business travel have increased after Covid-19. Delays, cancellations, changes, and strikes affect far more trips than in 2019. The world has become more uncertain. This should be incorporated into the travel policy through updated insurance, protection, and possible assistance for the individual traveler.

Chaos regarding baggage and disruptions are expected this year alone.

Read & Learn More

More From The Blog

Inspirational content to help you shift your life into the path of success

Book Your Free Session Now

Fill in the form below to book a 30 min no-obligation consulting session.
I will reply within 24 hours.