Ensuring corporate travel compliance : Control vs. commitment strategies

Abstract

Business travel has increased substantially during the past few decades. Business travel costs are one of the main controllable costs in international corporations, and thus companies are imposing stricter policies on corporate travel to create savings and efficiency. For travel management, the current literature suggests two alternative management strategies based on either a control-oriented or a commitment-oriented approach. In this paper we present an in-depth case study that investigates the impact that each type of strategy has on corporate travel policy compliance. Specifically, we investigate how the strategies are executed in a triadic travel supply chain setting, consisting of a corporate travel buyer, a business travel agency and a technology provider. Our findings show that both the control and commitment-based strategies are used in all stages of the travel process. The seminal finding is that the competitiveness and high quality of services provided internally by the buyer in collaboration with the triad members – rather than strict control and monitoring – is essential to travel policy compliance. This finding shows that corporate travel management shares similar perspectives to leisure travel in that service quality is key to securing business. Furthermore, a proactive approach to control via a well-established and reasonable travel policy is needed.