GTP Finance & Budget Management Flashcards

Which metric is most commonly used to measure the overall effectiveness of a corporate travel program's cost control?

Answer: Cost per trip

Cost per trip aggregates all travel-related expenses for a single journey, enabling consistent program benchmarking.

A company implements a 'lowest logical airfare' (LLA) policy. What does this policy require travelers to do?

Answer: Book the cheapest fare that meets reasonable travel requirements

LLA policies balance cost savings with practical considerations such as reasonable layover times and refundability.

When building a corporate travel budget, which factor is LEAST relevant?

Answer: Traveler's personal vacation preferences

Personal vacation preferences are not a business travel budget consideration; only business-driven factors matter.

What is a 'dynamic pricing' model in hotel procurement, and why does it concern corporate travel managers?

Answer: Room rates fluctuate based on demand, making budget forecasting difficult

Dynamic pricing makes costs unpredictable, complicating accurate budget forecasting for corporate travel programs.

Which payment method provides the MOST detailed transaction data to support corporate travel spend analysis?

Answer: Corporate lodge card or centrally billed account

Corporate lodge cards capture itemized data on all bookings, enabling granular spend analysis and reporting.

A GTP professional is reviewing unused ticket credits. What is the best practice for managing these?

Answer: Track credits in a centralized system and apply them to future bookings before expiry

A centralized tracking system ensures credits are applied before expiry, directly reducing future travel costs.