GTP Finance & Budget Management Flashcards

What does 'total cost of trip' (TCT) include that a simple airfare quote does NOT?

Answer: Ground transportation, meals, lodging, and productivity loss

TCT captures all direct and indirect costs of a business trip beyond the base airfare, giving a complete financial picture.

Which of the following best describes a 'managed travel program'?

Answer: A structured approach using policies, preferred suppliers, and data to control travel costs

Managed travel programs combine policy, supplier negotiations, and analytics to optimize cost and compliance.

A travel manager wants to benchmark hotel rates. Which source provides the most reliable industry comparison data?

Answer: Global Distribution System (GDS) rate data or industry reports like GBTA benchmarks

GDS data and GBTA benchmarks aggregate real market rates, providing objective comparisons for hotel procurement.

When is it appropriate for a corporation to issue a travel advance to an employee?

Answer: When the employee will incur significant out-of-pocket expenses in destinations without corporate card acceptance

Travel advances are justified when business conditions make it impractical for employees to bear costs personally and seek reimbursement.

Which KPI directly measures how often travelers book within policy on a corporate travel program?

Answer: Policy compliance rate

Policy compliance rate tracks the percentage of bookings made through preferred channels and within approved spending limits.

A corporation's travel spend increases 15% year-over-year while business travel volume stays flat. What is the MOST likely root cause to investigate first?

Answer: Increased out-of-policy bookings or lapsed supplier rate agreements

Rising spend with flat volume typically signals policy non-compliance or the expiration of negotiated supplier discounts.