The Role of Travel Managers in Data Analytics and Reporting
03 Jan 2025
Modern travel managers are increasingly leveraging data analytics and reporting tools to optimize travel programs, control costs, and improve traveler experiences
By utilizing data effectively, travel managers can gain insights into spending patterns, identify opportunities for savings, ensure compliance with travel policies, and measure the return on investment (ROI) of business travel.
This post will explore how travel managers can harness data utilization, make use of advanced reporting tools, and accurately measure ROI to improve their travel programs.
The Importance of Data Analytics in Corporate Travel
Data analytics has transformed how companies manage business travel. Access to data enables travel managers to make informed decisions that optimize both the traveler experience and company resources. By using data, travel managers can:
Optimize Costs: Analyze travel expenditures and identify cost-saving opportunities.
Enhance Traveler Satisfaction: Use traveler feedback data to improve services and accommodations.
Ensure Compliance: Track compliance with corporate travel policies and identify non-compliant behavior.
Negotiate Better Vendor Contracts: Use data-driven insights to negotiate more favorable terms with suppliers.
Data Utilization: Making Sense of Travel Data
Data utilization involves collecting and analyzing relevant data to inform travel-related decision-making. Travel managers can use data from multiple sources to gain a 360-degree view of travel activities. Some key areas for data utilization include:
Travel Spend Analysis
Travel managers can break down travel expenses into categories such as flights, hotels, ground transportation, meals, and incidental costs. This helps identify areas where spending is concentrated, and where cost savings can be implemented.
Example: Analyzing data may reveal that a significant portion of travel expenses is going toward last-minute bookings, which are often more expensive. The travel manager can then encourage early booking to reduce costs.
Identifying Trends and Patterns
By analyzing historical data, travel managers can identify trends and patterns in employee travel behavior. This can inform strategies for future travel planning.
Example: If data shows that a high number of employees travel to the same destination frequently, the travel manager might consider negotiating long-term contracts with preferred vendors in that location to secure better rates.
Benchmarking and Comparison
Data utilization allows travel managers to compare their organization’s travel spending against industry benchmarks. This helps gauge whether the company’s travel costs are in line with industry standards.
Example: If your company’s data shows that hotel costs are significantly higher than industry averages, this may prompt the travel manager to explore alternative accommodations or renegotiate with hotel suppliers.
Reporting Tools: Turning Data into Actionable Insights
Reporting tools play a crucial role in transforming raw data into actionable insights. Travel managers can use these tools to create customized reports, analyze key performance indicators (KPIs), and share insights with stakeholders.
Benefits of Reporting Tools
Real-Time Insights: Reporting tools provide real-time data on travel expenses, compliance rates, and traveler satisfaction, allowing travel managers to address issues quickly.
Customizable Dashboards: With customizable dashboards, travel managers can easily track KPIs such as travel spend, savings, compliance, and average booking lead times.
Automated Reports: Travel managers can set up automated reporting systems to regularly receive reports on travel metrics without the need for manual data gathering.
Key Travel Metrics to Track
Reporting tools help travel managers track essential travel metrics, including:
Total Travel Spend: Overall company travel expenditure across flights, accommodations, meals, and more.
Average Cost per trip: The average cost incurred per business trip, broken down by destination, department, or traveler.
Compliance Rate: The percentage of bookings that align with the company’s travel policy.
Traveler Satisfaction: Data collected from traveler feedback to assess their satisfaction with various aspects of their travel experience.
Forecasting Future Trends
Using reporting tools, travel managers can forecast future travel trends and costs. For example, by analyzing data on past travel patterns and anticipated business needs, travel managers can estimate future travel demand, enabling more strategic decision-making.
Example: If data indicates that travel to certain markets is increasing, travel managers can anticipate future travel needs and begin negotiating with vendors in those regions ahead of time.
ROI Measurement: Gauging the Value of Business Travel
Measuring the return on investment (ROI) of business travel is vital to understanding the value it brings to the company. Effective ROI measurement allows travel managers to demonstrate the tangible and intangible benefits of travel, ensuring that travel remains a key part of the company’s growth strategy.
Calculating Travel ROI
Travel ROI can be calculated by comparing the costs of travel against the revenue or business outcomes it generates. For example, a sales trip that leads to new business deals or a client retention visit can show measurable benefits.
Direct Revenue Impact: For sales teams, ROI can be measured by the amount of revenue generated as a result of the trip. If a sales trip results in securing a large contract, the ROI of that trip can be calculated by subtracting travel costs from the value of the deal.
Cost Savings: ROI can also be seen through cost-saving measures, such as negotiating better vendor rates or reducing non-compliance with travel policies. By showing how much the company saves through optimized travel management, travel managers can demonstrate positive ROI.
Intangible Benefits: Not all ROI is easily quantifiable. For instance, travel that strengthens client relationships, fosters partnerships, or enhances team collaboration may have long-term benefits that aren’t immediately visible. Qualitative data, such as feedback from clients or team members, can also be used to showcase the broader value of business travel.
Tracking Key Indicators of ROI
Travel managers can track several indicators to measure the ROI of corporate travel, including:
Revenue Growth from Business Trips: Tracking revenue generated from business deals or contracts secured during business travel.
Employee Productivity and Engagement: Measuring the impact of travel on employee morale, productivity, and retention. Satisfied and engaged employees may be more likely to close deals or represent the company effectively during business trips.
Client and Partner Feedback: Positive feedback from clients or partners after meetings or events held during business trips can indicate successful outcomes.
Cost Reduction through Efficient Travel Management: Measuring how travel managers have helped reduce costs by negotiating better deals with vendors, minimizing unnecessary travel, or optimizing travel booking processes.
Conclusion
The role of travel managers in utilizing data analytics and reporting tools is increasingly critical for optimizing travel programs and ensuring positive business outcomes. By leveraging data to analyze travel patterns, track spending, and ensure compliance, travel managers can make informed decisions that align with company goals. Additionally, advanced reporting tools offer real-time insights that help travel managers monitor key metrics and address challenges before they escalate. Finally, measuring ROI effectively allows travel managers to demonstrate the value of business travel, highlighting its direct and indirect contributions to the company’s success.
As travel management becomes more sophisticated, travel managers who embrace data analytics and reporting will be better positioned to create value for their organizations while enhancing the traveler experience.
Get in touch to find out how VMR Travel can help your business travel make a difference – Happy and Safe travels.