What do you know about Corporate Travel Management?
Is it different from the Travel Management Company or Travel Agency?
The Travel Operations Department of a Travel Management Company (TMC) may constitute a separate section to exclusively manage corporate accounts.
This section may include the in-plant desk or satellite offices the TMC may have in the different office locations of the account being handled.
The in-plant desk would act as mini-operations departments, able to process travel transactions from beginning (information and recommendation) to the end (collection and post trip evaluation including all necessary documentation requirements.
Value of Corporate Travel or Business Travel
Business Travel is characterized by sponsored travel for financial gain.
This includes:
Business Travel Management is a specialized business function that strikes a balance between employees’ travel needs with the corporate goals, financial or otherwise.
Corporate Travel Management
Effective Corporate Travel Management facilitates:
Because business trips are work – related and financed by the company, business travelers primary consideration is the reliable delivery of all the aspects of travel arrangements.
The person or entity that finances the trip, expect some benefit from the trip or the outcome of the trip.
The Value of Corporate Travel Management can be summarized into three:
Financial Controls
Most corporations in the Philippines today consider the cost of travel as the third or fourth controllable corporate expense. The capabilities to monitor and analyze travel expenditures are essential if cost – cutting opportunities are to be identified and taken advantage of.
Policy Adherence
Corporate travel management also involves developing corporate travel policies that optimize travel expense. Procedures are executors of policy.
Safety and Efficiency
Corporate travelers need a smooth, efficient travel process in order to reach the company’s travel objectives. During national, corporate or personal crisis, travel management professionals are vital to reducing risk to the company and its travelers through emergency tracking and assistance.
(e.g. locating lost travelers, speeding their return, comforting their families and keeping the normal flow of business in time of crisis)
Types of Business Travelers
WHAT IS INCENTIVE TRAVEL?
INCENTIVE TRAVEL is the reward element of an incentive, recognition, or loyalty program, which takes the form of an all-expenses paid trip with a program of scheduled events and activities.
Incentive travel is just one type of corporate event that is often grouped together under the acronym M.I.C.E (Meetings, Incentives, Conferences, Exhibitions) due to the similarities and over-lapping nature of these events.
INCENTIVE TRAVEL PROGRAMS
Although the content of an incentive travel program is very different to other types of meetings—in that the emphasis is on entertainment, activities, and socializing—the event planning process is very similar.
Who are usually the participants of an incentive travel program?
Types of Incentive Programs
SALES INCENTIVES
REWARDS AND RECOGNITION
EMPLOYEE MOTIVATION
CUSTOMER LOYALTY
It’s Not Just a Free Holiday…
more often than not companies create awards where the program is specifically designed to maximize the amount of time the group spend together.
INCENTIVE PROGRAM vs. INCENTIVE TRAVEL PROGRAM
TIMELINE and FORMAT OF AN INCENTIVE PROGRAM
Incentive Program run in chronological order:
PREVIEW
The incentive program is often unveiled on the final night of
the previous year’s incentive travel program.
TEASER CAMPAIGN
“Teasers” are sent out to participants to build anticipation of the official launch.
OFFICIAL ANNOUNCEMENT
Official announcement, information packs, and enrollment kits are sent out for participants to ‘sign up’ to the incentive program.
QUALIFICATION PERIOD
During this period, which could last up to a year, participants are required to meet the pre-defined criteria that would enable them to qualify for the award.
MID-PROGRAM MOTIVATION
More teasers and reminders will usually be sent out over the course of the qualifying period to encourage the participants to meet the necessary criteria.
QUALIFIERS ANNOUNCED
Qualifiers or ‘winners’ announced. In some cases, physical trophies or other gifts are handed out at this stage, in advance of the actual ‘award’ trip. Shortly after, travel arrangements will be communicated to the qualifiers.
FORMAT OF AN INCENTIVE TRAVEL PROGRAM
TRAVEL DAY (IN/OUT)
INCENTIVE DAYS
Is it different from the Travel Management Company or Travel Agency?
The Travel Operations Department of a Travel Management Company (TMC) may constitute a separate section to exclusively manage corporate accounts.
This section may include the in-plant desk or satellite offices the TMC may have in the different office locations of the account being handled.
The in-plant desk would act as mini-operations departments, able to process travel transactions from beginning (information and recommendation) to the end (collection and post trip evaluation including all necessary documentation requirements.
Value of Corporate Travel or Business Travel
Business Travel is characterized by sponsored travel for financial gain.
This includes:
- solicit or sign a multi – billion contracts
- travel to high business meetings or conferences
- participation in seminars or training programs,
- meeting and conventions
- travel to a workplace or work assignment
Business Travel Management is a specialized business function that strikes a balance between employees’ travel needs with the corporate goals, financial or otherwise.
Corporate Travel Management
Effective Corporate Travel Management facilitates:
- tracking and control of costs
- monitors adherence to corporate travel policies
- realizes savings through negotiated discounts or special rates
- serves as a source of information center for managers and employees.
Because business trips are work – related and financed by the company, business travelers primary consideration is the reliable delivery of all the aspects of travel arrangements.
The person or entity that finances the trip, expect some benefit from the trip or the outcome of the trip.
The Value of Corporate Travel Management can be summarized into three:
Financial Controls
Most corporations in the Philippines today consider the cost of travel as the third or fourth controllable corporate expense. The capabilities to monitor and analyze travel expenditures are essential if cost – cutting opportunities are to be identified and taken advantage of.
Policy Adherence
Corporate travel management also involves developing corporate travel policies that optimize travel expense. Procedures are executors of policy.
Safety and Efficiency
Corporate travelers need a smooth, efficient travel process in order to reach the company’s travel objectives. During national, corporate or personal crisis, travel management professionals are vital to reducing risk to the company and its travelers through emergency tracking and assistance.
(e.g. locating lost travelers, speeding their return, comforting their families and keeping the normal flow of business in time of crisis)
Types of Business Travelers
- Businesspersons – are those who own or are owners-managers of their business enterprises who travel for various reasons, mainly to solicit additional contracts or to negotiate for and source raw materials and so participate in events of interest to the enterprise.
- Corporate executives – are those travelers of executive rank – directors, assistant and executive vice presidents, presidents, chairs and the like traveling to represent the company in events overseas, or attend corporate affairs in a multinational setting.
- Corporate supervisors/rank-and-file – like their senior corporate officials, the lower ranks may also travel to represent the corporation in meetings overseas or attend training programs in corporate headquarters.
- Mariners – or seafarers travel needs are either scheduled in advance or are as the need arises under time – sensitive schedules.
- Government officials and employees – just like corporate executives, supervisors and rank-and-file, the Philippine government conducts missions to foreign countries for various purposes – commercial, diplomatic, military and the like.
WHAT IS INCENTIVE TRAVEL?
INCENTIVE TRAVEL is the reward element of an incentive, recognition, or loyalty program, which takes the form of an all-expenses paid trip with a program of scheduled events and activities.
Incentive travel is just one type of corporate event that is often grouped together under the acronym M.I.C.E (Meetings, Incentives, Conferences, Exhibitions) due to the similarities and over-lapping nature of these events.
INCENTIVE TRAVEL PROGRAMS
Although the content of an incentive travel program is very different to other types of meetings—in that the emphasis is on entertainment, activities, and socializing—the event planning process is very similar.
Who are usually the participants of an incentive travel program?
- The company’s employees
- Distributors
- Re-sellers
- Customers
Types of Incentive Programs
SALES INCENTIVES
- aimed at a company’s employees i.e. the sales team, or its distributors/re-sellers.
REWARDS AND RECOGNITION
- aim to inspire or influence someone’s efforts, the purpose of rewards and recognition programs are to reinforce certain behaviors.
EMPLOYEE MOTIVATION
- to engage people, change attitudes, build morale, and embed new values;
- to address low productivity, employee turnover, and poor customer service, or to foster teamwork and introduce new products.
CUSTOMER LOYALTY
- used to reward customer loyalty and repeat
It’s Not Just a Free Holiday…
more often than not companies create awards where the program is specifically designed to maximize the amount of time the group spend together.
INCENTIVE PROGRAM vs. INCENTIVE TRAVEL PROGRAM
- INCENTIVE PROGRAM is the entire scheme that leads up to and includes the “award”.
- INCENTIVE TRAVEL PROGRAM is the “award”; the reward element of the entire “incentive program”
TIMELINE and FORMAT OF AN INCENTIVE PROGRAM
Incentive Program run in chronological order:
PREVIEW
The incentive program is often unveiled on the final night of
the previous year’s incentive travel program.
TEASER CAMPAIGN
“Teasers” are sent out to participants to build anticipation of the official launch.
OFFICIAL ANNOUNCEMENT
Official announcement, information packs, and enrollment kits are sent out for participants to ‘sign up’ to the incentive program.
QUALIFICATION PERIOD
During this period, which could last up to a year, participants are required to meet the pre-defined criteria that would enable them to qualify for the award.
MID-PROGRAM MOTIVATION
More teasers and reminders will usually be sent out over the course of the qualifying period to encourage the participants to meet the necessary criteria.
QUALIFIERS ANNOUNCED
Qualifiers or ‘winners’ announced. In some cases, physical trophies or other gifts are handed out at this stage, in advance of the actual ‘award’ trip. Shortly after, travel arrangements will be communicated to the qualifiers.
FORMAT OF AN INCENTIVE TRAVEL PROGRAM
TRAVEL DAY (IN/OUT)
- Flight
- Transfers In/Out
- Hotel Check-in/ Check out
- Reception
- Dinner
- After-dinner Drinks
INCENTIVE DAYS
- Breakfast
- Excursion
- Lunch
- Activities
- Reception And Dinner
- Nightclub / Casino
- Team Building
- Dinner/Dance/Awards