Chris Airey says charities need to consider more than just the bottom line when making travel arrangements
Organisations in the charity and academic sectors are still under much financial scrutiny and many feel that this is a situation, partly resulting from the recession, which will not change in 2015.
Travel budgets in particular remain a crucial issue for third-sector organisations and following a survey of some of our largest clients, we have identified some of the challenges and opportunities facing charitable organisations this year.
While budgets will always be scrutinised, organisations need to think about smarter ways to spend more effectively.
As a consumer, flight upgrades are seen as a luxury but if it means that employees arrive refreshed and ready to work, rather than needing a rest day, it can help project budgets go further.
Budget increases are intended to enable charities and public sector organisations to carry out more important work. Our clients are telling us that maximising increased funding by spending wisely and being more accountable will be a main focus in 2015.
World events, wars and crises can impact charities and the public sector more than many other industries, despite even the most meticulous planning
Chris Airey
Like many other industries, data analysis is emerging as an important trend for charities and the public sector. Using management information to identify where savings have been made and where more can be made in the future has long been important. However there is now more focus on putting procedures in place so that findings can be followed up and acted upon effectively to benefit organisations in the long term.
Fare savings reports can highlight issues that need reviewing such as behavioural patterns at an individual or organisational level. This could include how many days before travel people are booking.
Consolidating data from multiple sources and analysing it effectively is also critical. There is always a danger of data overload and it is critical to focus on the areas that can make a difference and not get bogged down in areas that won’t.
Added value isn’t really added anymore, it is simply expected.
It is estimated that for many organisations, the cost of processing expenses is a substantial – but hidden – travel cost. According to the National Audit Office, in an average expense claim this can be £15.86 per line, including overheads. If you factor this in it really focuses the mind on how critical process improvements are to the overall budget. It is important to take an organisation-wide view.
Travel management companies are adding value by better integrating systems for managing travel expenses and polices with their clients’ systems. Using technology effectively in this way means organisations can be more efficient and maximise budgets.
World events, wars and crises can impact charities and the public sector more than many other industries, despite even the most meticulous planning. Our clients found that situations such as the Ebola crisis mean that travel budgets are very difficult to plan and with Ebola set to continue to affect many people into 2015, projecting travel spend will remain a challenge.
Regular meetings to discuss future travel are crucial, especially when plans can change frequently. We’d always recommend involving a travel management consultant so they can advise on how to get the best value from your travel budget while retaining flexibility. For example, we encourage clients to use charity airfares where possible as this allows them to secure the best-priced fares without making a firm commitment until very close to their travel dates. Tickets can also be changed easily and at minimal cost if necessary.
Chris Airey is managing director of Diversity Travel which works with over 2,000 clients including ActionAid, Tearfund and Save the Children International, developing cost-effective travel arrangements and providing clients with travel management consultancy to maximise value for money.
Chris Airey is managing director of Diversity Travel
