How can you evaluate the impact of travel on your company's profitability?

1 Define your travel goals

Before you can assess the impact of travel on your profitability, you need to define what you want to achieve with your travel activities. What are your business objectives, your target markets, your customer segments, and your value proposition? How does travel support your sales, marketing, service, and innovation efforts? How do you align your travel goals with your overall business strategy and budget?

2 Track your travel expenses

The most obvious way to measure the impact of travel on your profitability is to track your travel expenses and compare them with your revenue and profit margins. You can use tools such as travel management software, expense reports, invoices, and receipts to collect and analyze your travel data. You can also categorize your travel expenses by type, such as airfare, accommodation, transportation, meals, and entertainment. This will help you identify where you can save money and where you can invest more.

3 Monitor your travel outcomes

Tracking your travel expenses is not enough to evaluate the impact of travel on your profitability. You also need to monitor your travel outcomes and how they relate to your travel goals. For example, you can measure how travel affects your sales performance, customer satisfaction, loyalty, retention, and referrals. You can also evaluate how travel influences your brand awareness, reputation, market share, and competitive advantage. You can use tools such as surveys, feedback forms, CRM systems, and analytics to collect and analyze your travel outcomes.

4 Benchmark your travel performance

Another way to evaluate the impact of travel on your profitability is to benchmark your travel performance against your industry standards, competitors, and best practices. You can use tools such as reports, studies, publications, and online platforms to access and compare relevant travel data and metrics. You can also join networks, associations, and forums to learn from other travel professionals and experts. This will help you identify your strengths and weaknesses, opportunities and threats, and gaps and areas for improvement.

5 Optimize your travel strategy

Based on your travel goals, expenses, outcomes, and benchmarks, you can optimize your travel strategy and maximize your profitability. You can review and revise your travel policies, procedures, guidelines, and tools to ensure they are clear, consistent, and effective. You can also train and educate your travel staff, managers, and partners to ensure they are aware, informed, and engaged. You can also explore and implement new travel solutions, such as online booking, virtual meetings, loyalty programs, and green travel.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?