ARC report shows corporate cost-focused travel programs have negative consequences

Airlines Reporting Corp. (ARC) has released a detailed report concerning the wear and tear caused by business travel that says, according to travelers, cost-focused travel policies carry significant negative consequences in terms of traveler productivity, health, retention, and trip effectiveness, the company said.

The report, “The Hidden Expenses of a Cost-Focused Travel Program,” builds upon findings from a 2016 study conducted by for ARC by market research firm MMGY Global, in conjunction with American Express Global Business Travel (GBT) and tClara.

The results highlighted several notable distinctions between business travelers in cost-focused programs that prioritize cost savings, and those in traveler-focused programs, which emphasize a business traveler´s productivity and satisfaction.

Key findings include 22% fewer effective trips for business travelers in cost-focused programs than colleagues in traveler-focused programs, 13% are more interested in a new job, and 39% more in this group want to travel much less in two years. Additionally, they experienced significantly higher rates of sickness and stress, and lower quality sleep.

American Express Global Business Travel (GBT), a joint venture that is not wholly-owned by American Express Company or any of its subsidiaries, equips companies of all sizes with the insights, tools, services, and expertise they need to keep their travelers safe, focused, and productive while on the road.

With approximately 12,000 employees and operations in nearly 120 countries worldwide, GBT empowers customers to take control of their travel programs, optimizing the return on their travel and meetings investments, while providing traveler care.

tClara, headquartered near Cleveland, Ohio, provides travel benchmarks and analytics. The Air Clarity airfare and Trip Friction benchmarking tools deliver quick and clear insights for travel programs of any size.

ARC drives air travel intelligence and commerce in the travel industry with business solutions, travel agency accreditation services, process and financial management tools, and high-quality data. In 2016, the company settled USD 86bn worth of carrier ticket transactions for nearly 7,000 travel agencies with more than 12,000 points of sale. It is headquartered in Arlington, Virginia, with offices in Louisville, Kentucky; Tampa, Florida; and San Juan, Puerto Rico.