Travel Management 4 — Questions and Answers
Question 1: A travel manager wants to reduce 'maverick spending' in corporate travel. What does this term refer to?
- Expenses from canceled trips
- Employee bookings made outside approved channels or policy (Correct answer)
- Costs associated with first-class upgrades
- Fees charged by the travel management company
Correct answer: Employee bookings made outside approved channels or policy
Maverick spending occurs when employees book travel through unauthorized channels, bypassing negotiated rates and policy controls.
Question 2: Which approach best describes 'open jaw' ticketing in air travel?
- A round-trip ticket with the same departure and arrival city
- Flying into one city and departing from a different city (Correct answer)
- A one-way ticket with multiple stopovers
- A ticket purchased within 24 hours of departure
Correct answer: Flying into one city and departing from a different city
An open jaw itinerary involves flying into one city and returning from a different city, allowing travelers to cover more ground without backtracking.
Question 3: What is the primary purpose of a pre-trip approval process in corporate travel management?
- To allow employees to choose their preferred airlines
- To ensure travel is justified and within budget before booking (Correct answer)
- To automatically assign frequent flyer miles to the company
- To expedite security clearance for business travelers
Correct answer: To ensure travel is justified and within budget before booking
Pre-trip approval ensures that travel expenses are authorized by management and align with budget before any bookings are made.
Question 4: What is a 'soft dollar' benefit in corporate travel management?
- A discount paid in foreign currency
- Non-cash perks like upgrades or lounge access earned through volume with suppliers (Correct answer)
- Reimbursements paid via digital wallet
- Reduced rates for off-peak travel days
Correct answer: Non-cash perks like upgrades or lounge access earned through volume with suppliers
Soft dollar benefits are non-monetary perks negotiated with travel suppliers based on the company's booking volume.
Question 5: Which travel document is required for US citizens traveling to most countries in Europe under the Schengen Agreement?
- A Schengen visa
- A valid US passport (Correct answer)
- A Global Entry card
- An ESTA authorization
Correct answer: A valid US passport
US citizens can enter most Schengen Area countries for up to 90 days using only a valid passport, without needing a separate visa.
Question 6: What is 'rate parity' in hotel management?
- Charging different prices based on room floor level
- Maintaining consistent room pricing across all distribution channels (Correct answer)
- Offering loyalty members lower rates than the public
- Adjusting rates based on guest nationality
Correct answer: Maintaining consistent room pricing across all distribution channels
Rate parity means a hotel offers the same room price across all booking platforms, including its own website and third-party OTAs.
Question 7: In the context of group travel, what is a 'complimentary ratio' (comp ratio)?
- The ratio of complaints to satisfied customers
- The number of free spaces given by a supplier for every paid booking in a group (Correct answer)
- The compensation formula for delayed flights
- The percentage of commission earned by an agency
Correct answer: The number of free spaces given by a supplier for every paid booking in a group
A comp ratio (e.g., 1 free per 10 paid) means suppliers provide a complimentary spot for every set number of paying passengers in a group.
A travel manager wants to reduce 'maverick spending' in corporate travel.
What does this term refer to?