A Case Study Into the Non – Compliance of Travel Policy Within the Corporate Environment

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1.1 Background to the Study

In larger Corporate companies the expenditure budgeted for on business travel more often that not one of the largest expenses. It has been widely suggested that this expense is by and large controllable. The only way for this to be effective is for management to employ a travel policy which serves as a guide to all involved in the travel process.

1.2 The Purpose of the research

The purpose of the research is to identify the areas where travel policies are not adhered to, why they are not adhered to and what the traveler’s perceptions of travel policy are. We will investigate how some of the advancements if the travel industry recently, that could possible have caused the travel policy to be cast aside when making travel decision and the propensity for travelers to avoid certain options and motivate alternative travel requests

1.3 Objectives of the Study

The objective of the study is to identify & understand the reason for non – compliance of travel policy. Once reasons are identified, this information could be included in the review of a corporate companies travel policy and possibly make allowances for then or alternative disallow any such activity.

2.1 Theoretical Framework

In an organization, it requires all stakeholders to work towards a common goal if the desired out of what a travel policy intends to achieve is met. The value proposition of the individual can often hamper these objectives.

2.2 Preliminary Literary Review

The traditional travel agent that booked travel services and collected a commission from the supplier is no longer in existence. Corporate governance and ethical business practices have forced all players in the travel industry to become transparent in their pricing. The biggest impact has been on the traditional travel agent

In May 2005, after three years of negotiation with ASATA ( Association of South African Travel Agencies ) and the industry players. SAA ( South African Airways ) moved to a zero percent commission environment and in doing so changed the face of travel in South Africa for ever. Overnight the traditional travel agent became a travel management company.

Income was no longer derived from the supplier, but now a service that was provided to the traveler to process necessary travel request and paid for by the traveler. In terms of the corporate environment this change in structure forced corporate companies to analyze their specific travel patterns and review, develop, and implement a workable travel policy.

Non – compliance within corporate companies is an ongoing problem that has negative cost implications (Von Moltke, 2006). Procurement decisions are still largely left to office administrators and/or secretaries whose primary focus is on ticket price which narrows the view and ultimately cost the company more than necessary for travel (Bygate, 2006)

The ongoing success of Low Cost Carriers has seen corporate companies having to abandon their support of legacy carriers in their attempts to reduce travel expenditure. This has not been well received by the travelers themselves.

The recent demises of Nationwide Airlines has further diluted the number of seats available in the domestic market forcing corporate companies to look at the Low Cost Carries to form part of their travel policy. Prior to the collapse of Airline they were well positioned in the market as they offered the service of the legacy carriers but were priced in the Low Cost Carrier segment

Travel tends to be a very emotive issue as generally the corporate company is requesting their employers to spend time away from their families, friends & homes. The pre-eminent concerns of these travelers are not necessarily the cost involved but their own convenience and esteem while they are traveling. (Gilbert & Morris, 1995; Mason & Gray, 1995).

One of the major...
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