WEEK 1
TOPIC : THE KEY FACTOR IN CONTROLLING TRAVEL EXPENSES
LEARNING OBJECTIVES:
1. To identify the meaning of corporate travel management.
2. To understand corporate travel management.
3. To understand corporate culture.
4. To be able to understand corporate travel responssibilities
COTM 411 :
COURSE: CORPORATE TRAVEL MANAGEMENT
Academic facilitator: CHIM
Academic Community
GUIDE QUESTIONS:
1. What is Corporate Travel Management?
2. What is Travel Manegement?
3. What is Corporate Culture?
4. What is control of administrative behavior?
5. What are the different cultural behavior?
Week 2 topics:
üThe Key Factor in Controlling Travel Expenses
• Corporate Travel Management
•Travel Management
üBalancing Corporate Culture with Appropriate
Controls
• Corporate Culture
•Control Administrative Behavior
What is Corporate Travel Management?
üThe firm was rarely heard before the 1980’s
üHistorically, travel was more likely to be considered a routine and
unavoidable cost of doing business.
üLike any other commodity, travel services were purchased at market
rates
üPeople travel when they had to spent an amount that was
considered “appropriate” and the company footed the bill
But times have changed, spurred by the deregulation of the Airlines
between 1978 and 1982 and the PLETHORA of market forces
consequently unleashed, companies began to realize that travel was
indeed a controllable expense. In fact, for most companies, travel
represents the third largest controllable expense, after salaries
What is travel Management?
üIs the means by which companies exert
guidance and discipline over the
Transportation, Lodging, Food,
Entertainment and related expenditures
incurred by their employees
ü Corporate Travel Management maybe
defined as a company‘s efforts to exert
appropriate and effective control over travel
and entertainment expenses
What is Corporate Culture?
üConcerns life style in workplace. It is shaped by the expectations of
our management, the evolution of our industry, our geographic
location, the economic climate and a multitude of other influential
factors.
ü In our day-to-day life in the workplace , corporate culture is
manifested in a variety of concrete forms, salary ranges, employee
benefits, office design, working hours, dress codes and so on…
ü if corporate culture is manifested in the corporate lifestyle, the
business travel is a bonafide indicator of culture. A company’s
culture determines the traveling lifestyles of its employees.
v Level of comfort and convenience experienced while on the
road.
What is Control of Administrative Behavior?
üIt is critical that travel managers recognize the difference between
the cultural and administrative components of the company’s travel
management programs.
ü Each component requires different approaches if it is to be
modified.
ü issues of culture require strong and visible support from senior
management.
ü culture change is best accomplished in small, carefully measured
increments, with appropriate time between increments to allow
acceptance of the changes to occur.
ü Changes to administrative and procedural practices usually do not
require such a lengthly consensus building process.
The Culture Spectrum
LIST OF CULTURAL AND BEHAVIORAL TRAVEL
MANAGEMENT INITIATIVES
CULTURAL INITIATIVES:
• Airlines
a) Class of service
b) Required stop or connection en route
c) Club membership
d) Ownership of frequent flier points
e) Reimbursement for inflight movies, drinks, and or phone calls
• Hotels
a) Quality category of hotel
b) Suites or executive floors
c) Proximity of hotel to business location
LIST OF CULTURAL AND BEHAVIORAL TRAVEL
MANAGEMENT INITIATIVES
•Car Rental
a) Size of car
• Meals and Entertainment
a) Implementation or tightening of spending guidelines, limits or
per diems
• Payment Methods
a) Company funding versus a requirement that employees fund
travel and entertainment with their non personal funds or
credit.
LIST OF CULTURAL AND BEHAVIORAL TRAVEL
MANAGEMENT INITIATIVES
ADMINISTRATIVE INITIATIVES:
• Travel Arrangement
ü Designation of company approved travel agency
• Airlines
ü Designation of preferred carrier on key routes
• Hotels
ü Designation of preferred hotels in key destinations
• Car Rentals
ü Designation of preferred vendor
• Meals and Entertainment
ü Receipt requirements
ü Advance approval requirements
LIST OF CULTURAL AND BEHAVIORAL TRAVEL
MANAGEMENT INITIATIVES
•Payment Methods
ü Type of company funding
a) central billing
b) corporate card
c) Cash advance
d) others
• Expense Report Processing
ü Most policies and practices in this category would be
administrative in nature
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