Figure 3. Roles contributing to the decision-making unit (Copied from Davidson &
Cope 2003, 37, originally by Palmer 2001)
Figure 3 presents the different roles in business travel decision-making process in a company. Buyers are the companies and organizations that purchase individual business travel for their employees. The corporate travel purchases are often one of the highest elements in companies’ expenditure so it does matter how the purchasing process has been organized and controlled. Gatekeepers are the people who can use their influence in the organization in order to limit the options available to decision making units. For example a senior manager in the role of a gatekeeper could influence on the choice of a
Travel Management Company (TMC) that works as the partner of the company.
(Davidson & Cope 2003, 37.)
Decision makers are the people who have the authority to select the intermediaries and suppliers. They set the corporate travel policy and decide which suppliers are to be used. This role often falls to the company’s Procurement Manager or the company may have hired a dedicated Travel Manager if the travel spend is large enough.
According to Davidson & Cope (2003, 40-41), travel policy is normally a written document that may contain specifications such as:
- preferred airlines
- which booking classes can be booked - preferred booking channels
Global Distribution Systems, GDSs, have tools that help the companies make sure that corporate travel policies are followed. A corporate profile guides that the bookings are made on the flights of the airlines preferred in the travel policy. Traveler profiles can be used to store the passenger’s personal preferences (e.g. seating preferences, credit card and frequent flyer card numbers).
End users or consumers are the people who travel on business. Typically business travelers prioritize the effectiveness and quality of the travel products purchased. They value convenience, comfort, reliability, stress-free travel arrangements and prompt problem solving in case there are any disruptions or problems in the service. The end users certainly have their preferences what it comes to travel arrangements, but they are entitled to follow the company travel police. (Davidson & Cope 2003, 36.) Shaw says that consumers are given a lot of attention by those who are responsible of the marketing in the airline business. He points out, that the consumers may not be the decision makers in the company. The decision makers are defined as “customers”. In airline marketing it is important to distinct the difference between the roles of
“customer” and “consumer”. (Shaw 2007, 8.)
Gustafson’s study 2012 identified six main tasks for the professional travel manager:
1) Developing and implementing travel policy. Common rules and routines are a cornerstone in controlling the travel costs. The travel policy should include pre-trip approval, the information how to travel; which suppliers may be used, what degree of comfort is allowed (economy or business class), what booking class is allowed. The policy also specifies the administrative routines the traveler should follow, such as pre-trip approval, booking procedures, payment routines and expense report management.
2) Cooperating with a travel agency. The use of one selected travel agency enables the travel manager to get reporting of the travel activity and travel costs. The travel agency can also assist on making the company travel policy, and when it has been done, to control that it is obeyed. The travel agency can also report the company in case there has been policy deviations.
3) Making agreements with suppliers. The travel manager needs accurate travel statistics that shows the company’s travel volume. The statistics are especially needed when the travel manager negotiates with the service suppliers.
4) Standardizing payment routines. Travel manager typically implements routines for the payment of travel-related expenses. Travel account services and corporate charge cards are typical payment solutions. They are often implemented in cooperation with a travel agency.
5) Using travel statistics. In addition to using statistics for negotiations with service suppliers, they are also used for analyzing the organisation travel activity, for monitoring policy compliance and for identifying possibilities for travel cost
reductions. Travel managers often spend considerable time comparing and analyzing travel statistics. The statistics may be collected from service providers, from the travel agency and from payments system(s).
6) Communicating and gaining support within the organization. The travel managers need to communicate internally to many directions. It must be ascertained that the travel policy is supported by key decision-makers in the company. Communication with travelers is also important. They must be informed about the travel policy and important travel-related news. Travel managers must also be ready to receive feedback from the travelers about policy rules, travel arrangements, suppliers and travel agency services. (Gustafson 2012, 278.)
All the previously discussed roles – buyers, end-users, gate-keepers and decision-makers – are all subject to influences. The influences are based on (Davidson & Cope 2203, 41.):
- their own experiences of corporate travel and personal experience - the recommendations and criticism of the fellow –workers inside and
outside the company - press articles and media
- the sales and marketing actions by the travel suppliers or the Travel Management Companies (TMCs)