Usage of bonus programs

And then there is the topic of how to deal with the points or miles that business travelers personally acquire.

A very tricky issue!

To summarize, airlines (and hotels, car rental companies, and others in the travel industry) influence three decision levels for business trips:

1. Travel agencies
2. Companies
3. Travelers

All this is for trips that the company ultimately pays for. This means that at least with incentivizing travel agencies and certainly with incentivizing travelers, the suppliers can have a significant impact on companies' decisions!

Many are familiar with the conflicts that can arise when the cheaper long-haul Business Class flight is offered by Airline 'X', but the traveler is just a few points short of being invited to the next golf course by Airline 'Y'.

Now, many companies say, "Business trips are no walk in the park these days."

True!

"We don't want to take away the few perks that bonus programs offer to travelers, as the fun is paid for by the supplier, not us."

Wrong!

Don't let external forces meddle in your decisions. Bonus programs will dilute your travel expense policy, especially if the points can be used for personal purposes. Believe me, there is no more creative group than business travelers who sense an advantage and strive to seize it.

And you, the company, will indirectly pay for it by giving up an important approach to cost optimization.

Using bonus programs for business trips can lead to savings of approximately 10% on flight costs (you can do that calculation in your head; you don't need a calculator).

Of course, this doesn't mean simply stating in the travel policy, "Bonus points acquired during business trips must be used for future business trips" and leaving everything else to the forces of the market.

Because then, nothing will change.

That sentence must be included in the travel policy, and then a clean process must be established. There are external providers that do exactly this!

Of course, I won't reveal their business model here.

Just a few important points to address potential objections internally:

Especially with airlines in the 'Star Alliance,' we are talking only about 'points,' not 'status points.'

This is very important because who would willingly give up their 'Frequent Flyer' or 'Senator' status!

Next, we assess which airline within the system (let's stick with the Star Alliance) offers the most points per mile flown and which airline requires the fewest points for free flights or upgrades.

Then, we need a software to find available seats for free flights or upgrades, and there you have an excellent solution to save a lot of money.

Feel free to approach me; I can tell you more about these solutions.

And yes, there will be some changes to 'Miles&More' starting from January 1, 2024, but the principles can still be applied!

By the way, if you want to do something good for your employees, who also prioritize the company's interests during business trips - gamification works differently. We can also discuss that sometime.