GTP GTP Finance & Budget Management 2 — Questions and Answers
Question 1: Which metric is most commonly used to measure the overall effectiveness of a corporate travel program's cost control?
- Cost per trip (Correct answer)
- Number of visas issued
- Traveler satisfaction score
- Passport renewal rate
Correct answer: Cost per trip
Cost per trip aggregates all travel-related expenses for a single journey, enabling consistent program benchmarking.
Question 2: A company implements a 'lowest logical airfare' (LLA) policy. What does this policy require travelers to do?
- Book the cheapest fare that meets reasonable travel requirements (Correct answer)
- Always book the cheapest available fare regardless of conditions
- Book only first-class tickets
- Use only one airline for all travel
Correct 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.
Question 3: When building a corporate travel budget, which factor is LEAST relevant?
- Traveler's personal vacation preferences (Correct answer)
- Historical travel volume by department
- Projected fuel surcharge trends
- Planned business expansion into new markets
Correct answer: Traveler's personal vacation preferences
Personal vacation preferences are not a business travel budget consideration; only business-driven factors matter.
Question 4: What is a 'dynamic pricing' model in hotel procurement, and why does it concern corporate travel managers?
- Room rates fluctuate based on demand, making budget forecasting difficult (Correct answer)
- Hotels charge a flat rate regardless of season
- Airlines set hotel prices through interline agreements
- Rates are fixed for the entire fiscal year
Correct answer: Room rates fluctuate based on demand, making budget forecasting difficult
Dynamic pricing makes costs unpredictable, complicating accurate budget forecasting for corporate travel programs.
Question 5: Which payment method provides the MOST detailed transaction data to support corporate travel spend analysis?
- Corporate lodge card or centrally billed account (Correct answer)
- Employee personal credit cards
- Cash advances
- Traveler's checks
Correct answer: Corporate lodge card or centrally billed account
Corporate lodge cards capture itemized data on all bookings, enabling granular spend analysis and reporting.
Question 6: A GTP professional is reviewing unused ticket credits. What is the best practice for managing these?
- Track credits in a centralized system and apply them to future bookings before expiry (Correct answer)
- Ignore them as they are too difficult to track
- Request refunds on all unused tickets immediately
- Transfer credits to employee personal accounts
Correct 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.
GTP GTP Finance & Budget Management 2
Which metric is most commonly used to measure the overall effectiveness of a corporate travel program's cost control?