Case Study: Pre-Trip Approval
A multi-national manufacturing firm has been a Corporate Travel Management (CTM) client for over 11 years with offices across APAC, North America, and EMEA and over 5,000 profiled travellers.
As part of our continuous improvement planning strategy for this client, CTM conducted a study to assess if hard stop pre-trip approvals on airfares reduced cost and guided compliant employee behaviour.
Read on to learn more.
Client
A multi-national manufacturing firm
Industry
Manufacturing sector
Focus
Evaluating the impact of the client’s approval process on costs and traveller satisfaction
Objective
CTM evaluated the client’s hard stop pre-trip airfare approval policy to understand its impact on cost, productivity, and satisfaction, with the goal of recommending improvements to optimise spend and enhance the traveller experience.
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Solutions
CTM conducted a six-month study which revealed that the client’s hard-stop pre-trip approval process was costing approximately $5,000 per month, causing delays, increased airfares, and widespread traveller dissatisfaction.
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Outcome
To improve approval efficiency and reduce unnecessary costs, CTM recommended a shift to a manager notification model, adopted by the client, which is now projected to save approximately $60,000 annually while enhancing the traveller experience.
Read moreFollowing feedback from travellers about delayed hard-stop approvals, CTM set out to assess the impact of the client’s hard-stop pre-trip airfare approval policy on travel costs, employee productivity, and overall program satisfaction. The insights would inform a policy review, enabling CTM to recommend enhancements that optimise the client’s travel spend while improving the traveller experience.
Since the client’s senior leadership was committed to maintaining hard-stop pre-trip approvals, CTM recommended conducting a six-month study to evaluate whether the policy was contributing to increased travel costs, reduced employee productivity, and negative perceptions of the travel program.
The study assessed:
- The number of trips approved and declined by managers
- Instances where trips were not reviewed in time, requiring re-submission and fare repricing
- Cost differentials between the original and re-submitted fares (through custom fare coding)
- The additional time travellers spent repricing and resubmitting trips
The study revealed that the client was losing approximately $5,000 per month due to manual hard-stop approvals, despite no trips being denied during the same period. Managers with the highest rate of missed approvals cited their inability to respond in time due to travel and meeting commitments.
This inefficiency not only drove up costs but also led to significant traveller frustration and lost productivity on both sides. Over 10,000 trips issued in North America were impacted, with delays causing missed ticketing deadlines, increased airfares, and disrupted travel schedules.
To improve approval efficiency and reduce unnecessary costs, CTM recommended two alternative solutions:
- Replace the hard stop approval process with a manager notification system; alerting managers when a request is submitted to avoid delays, missed savings opportunities, and lost productivity.
- Introduce a hybrid model, requiring manager approval only for airfares above $1,500, with all other bookings managed through notifications.
CTM also recommended internally promoting the policy change to encourage adoption and support a more traveller-friendly experience. The client opted for the notification model and is now on track to save approximately $60,000 annually.
The study revealed that the hard-stop approval process negatively impacted costs and traveller satisfaction.
Transitioning to a notification model boosted savings, productivity, and the overall experience.
This transition is forecast to save the client approximately $60,000 in airfares annually.
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