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Business Travelers are still going rogue with hotel bookings

Profile Photo By: Carsten Hennig
October 19, 2017

Business Travelers are still going rogue with hotel bookings

Bellevue, Washington – 19 October 2017 –
A recent study by Egencia, the business travel arm of the Expedia group, found that despite the wide use of travel policies worldwide, “rogue booking”, the practice of business travellers booking outside of their travel program, is still an issue for corporate travel programs, especially when it comes to hotel stays. While 60 percent of companies have a travel policy in place, more than half of the business travellers surveyed are still allowed to book travel using any method they choose, and a full 46 percent have done so for hotel bookings, according to the 4th edition Egencia Business Travel and Technology Survey. To rein in these rogue booking tendencies, the study suggests that relevancy, incentivization and clear policies can pave the way.

When it comes to hotels, relevance beats quantity
Business travellers book out-of-policy because either they could not find a hotel close enough to their destination (37 percent) or found a better price or hotel within their per diem (37 percent). With this in mind, providing relevance in a travel program means surfacing a selection of hotel choices at the top of their online search results that are tailored to the needs of the business travellers. This can include the location of hotels as well as flexible booking options. Additionally, offering fair and competitive pricing eliminates the need to shop outside the company’s preferred booking channels.

“When it comes to hotels, we know that it’s not about searching, it’s about finding. That’s why we find ways to serve up the right choice for business travellers within the first few search results. And it works – 75 percent of Egencia travellers book one of the top seven hotel results and over half book from the top three,” says Andrew Dyer, VP Global Supply-Lodging. “Travelers want an intuitive, cross-device experience with clear descriptions of what is included in the price. With this they can feel confident that they are booking the right accommodations, which will, in turn, increase policy compliance,” adds Dyer.

Incentives foster compliance
According to the study, incentives for staying within policy vary by region, but globally, monetary rewards prove to be the most likely incentive to encourage travellers to book within their policy. Sixty-two percent of business travellers say that they would choose within policy if they receive a percentage of savings for booking below the cap and an additional 60 percent would comply if they received funds they could apply to other travel options. While it’s widely discussed that U.S. travellers prioritize loyalty points, the Egencia study found that loyalty points are the second most likely reason to book within policy, which is an indicator that their priorities could be changing. U.S. travellers are also by far the most easily persuaded to book in-policy, compared to their international counterparts.

Adoption improves safety and costs
When travellers book within policy, companies can protect the safety of their travellers and create cost efficiencies in the long-term. With the increased adoption of policies and booking tools, travel managers can immediately locate travellers in an emergency, whether it is weather-related, geopolitical and/or a terrorist event. Access to immediate, accurate reports helps keep travellers safe wherever they are in the world. The concept of going rogue creates extra work for safety officers who must locate individual straying travellers in an emergency and calls for more time spent on collecting data streams from rogue bookings to consolidate into a comprehensive report and more spending overall. According to GBTA, 79 percent of travel managers acknowledge that using a travel management company (TMC) leads to more efficient processes and drives savings in business travel1. The most successful travel policies can drive compliance among travellers which means companies can ensure the safety of their travellers first and forefront, in addition to driving cost savings long-term.

This study was conducted on behalf of Egencia by Northstar, a globally integrated strategic insights consulting firm. The study was conducted among 4521 business travellers aged 18 and older in Australia, Canada, France, Germany, Norway, Singapore, Sweden, United Kingdom and United States (with n=500 surveys completed per country). Surveys were completed online in April and May 2017.

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