Corporate Travel Policy & Program Management Flashcards

What is the role of a Request for Proposal (RFP) in corporate travel program management?

Answer: A formal document soliciting bids from suppliers to compete for a company's travel spend

An RFP is a formal solicitation sent to suppliers outlining the company's travel needs and inviting competitive bids, enabling the company to negotiate preferred rates and terms.

Which KPI is MOST useful for measuring the financial effectiveness of a managed corporate travel program?

Answer: Savings achieved versus benchmarked or unmanaged rates

Savings versus benchmark measures the actual financial benefit of the managed program by comparing negotiated rates to market or unmanaged alternatives.

A company implements a 'soft approval' booking process. What does this mean?

Answer: Out-of-policy bookings are flagged and a reason code is required, but the booking is not blocked

Soft approval captures reason codes for out-of-policy behavior without blocking the booking, balancing compliance tracking with traveler flexibility.

When negotiating a hotel program, what is a 'last room availability' (LRA) clause?

Answer: A provision ensuring the negotiated rate is available until the hotel is fully sold out

Last room availability guarantees that the negotiated corporate rate applies as long as any room is available, preventing the hotel from blocking the rate during high-demand periods.

Which tool is MOST commonly used to enforce corporate travel policy at the point of booking?

Answer: An online booking tool (OBT) configured with policy rules

An online booking tool configured with policy parameters enforces compliance proactively at the point of sale, rather than after the trip is completed.

What is the primary benefit of consolidating all corporate travel spend with a single Travel Management Company (TMC)?

Answer: Greater spend visibility, reporting consistency, and negotiating leverage with suppliers

Consolidating with one TMC provides complete data visibility, standardized reporting, and aggregated spend that strengthens the company's bargaining position with airlines and hotels.

A GTP is evaluating whether to implement a 'pre-trip approval' process. What is the PRIMARY disadvantage of this approach?

Answer: It can delay bookings and reduce traveler productivity if not streamlined

Pre-trip approval adds an administrative step that can slow down the booking process and frustrate travelers if the approval workflow is not efficient and responsive.