Are open bookings cheaper? When it comes to managing travel, “free” can really mean “free-for-all.” This post explains why employees exceed company budgets, use unapproved vendors, and violate travel policies.
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Employees Spend Far More with Open Bookings
Employees end up spending 20% more on airfares and hotel rooms when they book on their own.
Why so much more? Because employees often choose providers based on individual perks like airline miles or hotel points. In 2024, TravelBank commissioned Forrester Consulting to conduct a Total Economic Impact™ study that evaluated TravelBank’s potential total cost of ownership and ROI. And the study found that, on average, these non-adherent employees spent 20% more.
“Travel for us was a free-for-all situation… People booked at a premium and chose carriers based on their personal preference or personal rewards, not on price. We knew there was extra spending we were not catching.“
– Director of ERP solutions at a healthcare organization
Open Bookings “Drip” the Real Price
If fares and rates on open booking sites look cheaper, there’s a catch there, too. These sites present cheap base fares that conveniently exclude taxes and mandatory fees.
Chances are your employees will need checked baggage, carry-on bags, in-flight WIFI, pillows, even printing their own boarding pass – all of which are add-on costs called “drip pricing”. (source) Almost three-quarters of all providers use drip pricing. (source)
As more airlines adopt the New Distribution Capability (NDC), there’s no reason why your booking tool shouldn’t include the complete details, costs, and offerings upfront.
Don’t Waste Flight Credits
Are you wasting money on canceled trip flight credits? When using open bookings sites, those credits belong to the employee, not the company.
Don’t let flight credits go to waste! With travel management software, users can view their unused credits and apply them quickly to future flights. And admins can view all of their company’s unused flight credits.
Effective management of unused tickets can add up to serious cost savings over time that your business shouldn’t be giving up.
While open bookings can have its benefits, especially for employees who hold strong preferences and familiarity with certain consumer travel booking platforms, the costs shouldn’t be overlooked when you’re weighing which option makes sense for your business.