A well-managed travel program is critical and impacts an organization’s bottom line whether travel spend is $1 million or $100 million.  Continuing adjustments to policy and programs that support and reflect change are necessary and will ultimately assist in controlling travel costs and creating best practices. 

This issue of Mobility Report is dedicated to those of you who continue to meet the challenge of change and marks our 25th year in reporting on the profile of the corporate travel management professional. 

About Survey Respondents

This article is based on 101 responses to a survey conducted in November 2005.

 

Organizations of all sizes responded to our recent survey.  Breakouts of travel expense budgets are reported in Table 1 where a similar percentage of organizations have budgets of $5 million or less (24%) or more than $30 million (23%).  Budgets of $5 million to $30 million are evenly distributed among the remaining respondent organizations.

Table 1 2005 Annual Travel Budget Size
Budget Size	Percent of 2005 Respondents
$250,000 or less	4%
$250,001 to $1 million	7%
$1,000,001 to $5 million	13%
$5,000,001 to $10 million	17%
$10,000,001 to $20 million	19%
$20,000,001 to $30 million	17%
$30 million or more	23%

When asked how much higher travel budgets would be without the efforts of a travel management department, respondents estimate budgets would be an average of 34% higher.  Interestingly, answers to this question provided contrasting feedback—from 0% to 50% higher.

Table 2 represents a composite of survey averages.  A typical 2005 travel management professional is 48 years old earning $73,165 per year.  Seventy-four percent of respondents are female and continue to dominate the field of travel management.  Respondents have, on average, more than 10 years experience in the travel industry and have been responsible for travel at their organization for two to five years.  The typical travel professional spends 71% of his or her time on travel related duties and is responsible for a staff of five.

Table 2 Profile of Person in Charge of Travel Management
Survey Averages	2002	2003	2004	2005
Age	44	45	45	48
Salary	$69,502	$72,160	$70,112	$73,165
Years in position	2 to 5	2 to 5	2 to 5	2 to 5
Years in travel management	11 to 19	More Than 10 years	More than 10 years	More than 10 years
Staff size	6	5	4	5
Percent of time spent on travel management duties	74%	72%	69%	71%

Just seven years ago, the average salary of survey respondents was reported at $58,000.  Overall salary of this year’s respondents is the highest ever reported and may be attributed to the number of seasoned professionals responding to our survey.  In addition, a travel manager’s value continues to elevate based on their contribution to organizational initiatives. 

Job titles vary based on level of responsibility, staff size and salary grade within an organization.  Sixty-five percent of this year’s respondents report the title of manager and 12% hold the title of director (Table 3).  Ten percent of respondents are travel coordinators or specialists while a continuing decrease is shown in administrative assistants who have travel management responsibilities (2%).

Table 3 Job Titles of Survey Respondents
	Percent of Respondents
Title	2002	2002	2004	2005
Vice President	7%	3%	3%	2%
Director	14%	13%	17%	12%
Manager	49%	51%	57%	65%
Supervisor	3%	5%	0%	4%
Coordinator/Specialist	8%	10%	7%	10%
Administrative Asst/Secretary	6%	3%	3%	2%
Other	13%	16%	13%	5%

Most respondents (85%) work at corporate headquarters; the remaining 15% work either at a regional or branch/field office.  Eighty-four percent of respondents manage travel for their entire organization as shown in Table 4.  Sixteen percent of respondents manage travel for corporate headquarters, while 6% manage an average 35 regional locations, and 9% are responsible for 60 branch or field offices.

Table 4 For Whom Does your Department Manage Travel
Manage Travel	Percent of 2005 Respondents
All company travel	84%
Corporate headquarters	16%
Regional headquarters	6% (35 locations)
Branch/field offices	9% (60 locations)
Totals exceed 100% because of multiple answers.

Thirty-one percent of travel professionals report to the accounting/finance department and 24% report to purchasing or procurement (Table 5).  While these percentages show only an incremental percentage increase over last year’s survey results, they represent more than one-half of travel reporting structures.  Respondents reporting to administration increased seven percentage points when compared to last year and corporate services continues to lose ground as the department overseeing the travel function (6%).

Table 5 Reporting Department
	Percent of Resondents
Department	2002	2003	2004	2005
Accounting/financing	9%	30%	30%	31%
Purchasing/procurement	-	20%	23%	24%
Administration	7%	13%	9%	16%
Corporate Services	19%	7%	9%	6%
Human Resources	N/A	9%	8%	9%
Strategic Sourcing	-	4%	7%	2%
Sales/marketing	2%	3%	1%	0%
Office Services	2%	2%	0%	4%
Travel	36%	N/A	N/A	N/A
Other	9%	11%	13%	8%
N/A = Not Asked - = Not Reported

 
On average, respondents have five staff members in their travel department, three of which are exclusively involved in travel management.  In addition, all but one respondent reported additional responsibility for managing other company employees and/or supervising outsourced employees. The average number of company direct reports is six and the average number of outsourced employees is three.

The largest single group of respondents, 34%, has managed travel for their organization for two to five years (Table 6).  An additional 34% have been administering the travel program for five to 10 years, while 20% have been responsible for their organization’s travel for more than 10 years, with 16 years being average.

Table 6 Years Responsible for Travel Management within Organization
	Percent of Respondents
Years	2003	2004	2005
Less than 1 year	5%	16%	4%
1+ years to 2 years	11%	12%	8%
2+ years to 5 years	38%	26%	34%
5+ years to 7 years	14%	12%	19%
7+ years to 10 years	11%	20%	15%
More than 10 years	21%	14%	20%

Twenty-four percent of travel professionals have worked in travel management for five years or less;  however, experienced travel professionals represent nearly three-fifths of our respondent base with more than 10 years of travel management proficiency, with 21 years being average (Table 7).

Table 7 Years Worked in Travel Management
	Percent of Respondents
Years	2003	2004	2005
Less than 1 year	<1%	5%	1%
1+ years to 2 years	7%	9%	3%
2+ years to 5 years	22%	16%	20%
5+ years to 7 years	12%	11%	10%
7+ years to 10 years	12%	9%	9%
More than 10 years	46%	50%	57%

Tenure continues to be evident with one-third of respondents reporting they have worked for their organization for more than 10 years (Table 8). Of this group, the average number of years is 19. Thirty-eight percent of respondents have worked at their organization for five to 10 years.

Table 8 Years Worked for Current Organization
	Percent of Respondents
Years	2003	2004	2005
Less than 1 year	4%	9%	3%
1+ years to 2 years	6%	10%	5%
2+ years to 5 years	27%	23%	21%
5+ years to 7 years	13%	13%	20%
7+ years to 10 years	12%	18%	18%
More than 10 years	38%	27%	33%

Organizations that recognize the importance and abilities of their employees will fill many positions from within allowing for upward mobility—this is a win-win arrangement for employee and employer.

Employment history of travel professionals is presented in the following two tables. Thirty-three percent of respondents worked in a different capacity for another organization, while 32% worked in a similar capacity for another organization (Table 9).

Table 9 Where Respondents Worked Before Accepting Current Position
	Percent of Respondents
Position	2003	2004	2005
Different capacity for another organization	28%	35%	33%
Similar capacity for another organization	32%	28%	32%
Different capacity for current employer	28%	24%	25%
Other	12%	13%	10%

Travel agency experience continues to represent the work history of many corporate travel management professionals (35%) as shown in Table 10.  Accounting/finance backgrounds hold steady at 15%.  Purchasing experience decreased five percentage points over last year, this year reported a 6%.  “Other,” as reported by 13% of respondents include: retail, insurance underwriting, human resources and general affairs, office manager, operations, armed forces, and actor.

Table 10 Previous Work Experience of Travel Professionals
	Percent of Respondents
Previous Experience	2002	2003	2004	2005
Travel agency	35%	26%	32%	35%
Accounting/finance	4%	17%	13%	15%
Administration	11%	11%	7%	10%
Airlines	8%	4%	6%	8%
Purchasing/buying	10%	11%	11%	6%
Sales/marketing	5%	4%	9%	4%
Meeting planning	3%	3%	2%	4%
Secretary	5%	5%	0%	3%
Personnel	2%	2%	2%	2%
Other	17%	16%	18%	13%

The top six travel responsibilities are shown in Table 11. The majority of respondents have responsibility for travel policy development (96%), travel vendor negotiations, and responding to traveler concerns and questions (both reported at 95%).  An additional 90% are responsible for their organization’s travel and for the recommendation and implementation of cost saving initiatives (asked for the first time this survey year).  Eighty-seven percent of respondents are responsible for policy enforcement.

The top two most challenging duties of travel professionals are reported as policy enforcement (29%) and the recommendation and implementation cost saving initiatives (17%).

Table 11 Travel Responsibilites of Professionals
	Percent of Respondents
Responsibilities	2000	2001	2002	2003	2004	2005
Travel policy development	90%	87%	97%	90%	95%	96%
Travel vendor negotiations	89%	84%	95%	87%	92%	95%
Respond to traveler concerns and questions	N/A	N/A	N/A	N/A	N/A	95%
All company travel	76%	83%	86%	86%	80%	90%
Recommend and implement cost saving iniatives	N/A	N/A	N/A	N/A	N/A	90%
Policy enforcement	85%	86%	90%	90%	88%	87%

As the value and importance of the travel management professional increases, so do the job expectations and responsibilities.  Because the travel manager is (should be) fully knowledgeable in all aspects of the travel industry, it is reasonable that they be relied upon for recommendations for the implementation of cost-saving processes and efficiencies.

Policy enforcement should be the responsibility of the traveler’s manager, not the travel manager. However, it is the responsibility of the travel manager to educate travelers in the importance of planning and establishing procedures to facilitate buying trips that will minimize traveler discretion and make use of preferred suppliers.  When travelers fully understand the impact of their travel choices and habits, compliance is often the payback.

The top-five non-travel responsibilities of travel professionals are reported in Table 12. Most often cited are purchasing (30%) and controller/finance/audit responsibilities (23%).  Office services responsibilities (19%), facilities management (17%), and fleet car administration (15%) complete the top-five list.  “Other” non-travel responsibilities reported by survey respondents include: corporate and purchasing cards, T&E, wireless program management, meetings management, software support and administration, security, IT project management, payroll and accounts payable, board liason, contract coordination, product liability claims, and meter analyst.

Table 12 Non-Travel Responsibilities Held by Travel Professionals
	Percent of Respondents
Responsibility	2003	2004	2005
Purchasing	29%	34%	30%
Controller/finance/audit	15%	11%	23%
Office services	22%	19%	19%
Facilities management	12%	23%	17%
Fleet car administration	16%	17%	15%

The overall average annual salary of travel management professionals is $73,165; the median salary is $69,500. Data in Table 13 shows salaries of respondents by the most often reported job title.  Travel managers report an average of $72,940; directors earn most at $101,910.

Table 13 Salary by Job Title
Title	Average	Median
Director	$ 101,910	$ 115,000
Manager	$72,940	$73,000
Coordinator/Specialist	$52,271	$50,000
Administrator	$42,000	$42,000

Job titles are usually conferred on a basis of either job functions or budget responsibility. Job titles vary from company to company and encompass different levels of responsibility and, therefore, represent varying salary ranges.

Respondents report their average one-year percentage salary increase at 4%.  The average salary increase over the past three years is indicative of this percentage and is reported at 11%.

Forty-nine percent of respondents report their total compensation includes a bonus based on performance standards. Most respondents (71%) report contribution to organization’s value as the number one standard followed closely by overall organization performance (65%) as shown in Table 14.  Consistent program improvements, at 45%, is also an often-reported performance standard.

Table 14 Bonus Based on Performance Standards
Standard	Percent of 2005 Respondents
Contribution to organization’s value	71%
Overall performance of organization	65%
Consistent program improvements	45%
Travel savings	33%
Effective management of additional duties	33%
Adherence to budget	33%
Effective management of personnel	31%
Traveler satisfaction	31%
Communication skills	31%
Increased adoption rate associated with online booking tool	14%
Other	8%
Total exceeds 100% because of multiple answers.

Of respondents that receive a bonus as part of their total compensation, the average bonus represents 11% of salary or $8,048 when calculating this amount on the average overall salary of $73,165.

Fifty-seven percent of respondents feel their compensation is commensurate with their responsibilities, and 48% believe their compensation is in line with other positions with similar responsibilities.

Average and median salaries by region of the country are reported in Table 15.  Respondents from the Pacific states earn the highest average salaries at $92,154 followed by Mid-Atlantc states at $78,667.

Table 15 Average Salary by Region
Region of Country	Average Salary	Median Salary
Pacific (AK, CA, HI, OR, WA)	$ 92,154	$ 88,000
Mid-Atlantic (DC, DE, MD, NJ, NY, PA, WV)	$ 78,667	$ 84,250
South Atlantic/Gulf (AL, FL, GA, MS, NC, SC, VA)	$ 71,608	$ 76,900
Rocky Mountain (AZ, CO, ID, MT, NM, NV, UT, WY)	$ 71,800	$ 65,000
West Central (AR, IA, KS, LA, MN, MO, ND, NE, OK, SD, TX)	$ 69,587	$ 64,000
East Central (IL, IN, KY, MI, OH, TN, WI)	$ 68,706	$ 64,000
New England (CT, MA, ME, NH, RI, VT)	$ 55,730	$ 60,000

Averages are not all-inclusive.  Data are offered in response to readers’ request for information by region of the country. Averages and medians are meant to provide a high-level view of travel professionals’ income under varying scenarios.

Three-fourths of respondents have college degrees (Table 16).  Of respondents with college degrees, 53% have obtained a degree in business as shown in Table 17.  Thirty-two percent hold a liberal arts degree, while 7% report a science/engineering degree. “ Other” degrees include: music, political science, public relations/journalism, radio/TV, travel and marketing.

Of respondents who hold advanced degrees, nearly all have achieved a Master's Degree of which 67% have earned an MBA.  An additional 6% hold a PhD, Doctorate, or equivalent.

Table 16 Education
Education Level	Percrent of 2005 Respondents
Bachelor’s degree	34%
Some college	19%
Post-graduate education	18%
2-year (Associates degree)	11%
Attended graduate school	10%
High school graduate	7%
Other	1%

Table 17 Type of Degree (Of Respondents with College Degrees)
Degree	Percent of 2005 Respondents
Business	53%
Liberal Arts	32%
Science/Engineering	7%
Other	8%

Nearly three-fourths of respondents have furthered their travel education through participation in a National Business Travel Association (NBTA) course, with an additional 60% tap into the educational sessions offered by regional business travel associations (Table 18).  Nearly one-half of respondents take advantage of the courses or forums offered by the Association of Corporate Travel Executives (ACTE), 31% have attended a Runzheimer seminar and 21% have taken some type of college course.  “Other” courses as reported by 22% of respondents include: TA University Online, Harvard negotiating course, Federal Travel Regulations, customer service, IT courses, contract management, Dale Carnegie, SOX, GLP through Wharton, Meeting Professionals International, CMP certification, vendor advisory boards, and System One reservation system.

Table 18 Courses Taken in Travel Management (Of Respondents Who Have Taken Courses)
Courses Taken	Percent of 2005 Respondents
NBTA course	73%
Regional BTA course	60%
ACTE course/forum	47%
Runzheimer seminar	31%
College course	21%
SCTM (Society for Collegiate Travel Management) course	6%
SGTP (Society of Government Travel Professionals)	1%
Other	22%
Total exceeds 100% because of multiple answers.

Forty-seven percent of respondents have achieved some type of professional certification.  Of this group, 19% have attained CCTE (Certified Corporate Travel Executive) status, and 5% are CTCs (Corporate Travel Counselors) as shown in Table 19. 

 

Table 19 Professional Certification Status (Of Respondents with Certification)
Certification	Percent of 2005 Respondents
None	53%
CCTE (Certified Corporate Travel Executive)	20%
CTC (Certified Travel Counselor)	5%
C.P.M. (Certified Purchasing Manager)	2%
CPA (Certified Public Accountant)	2%
CMP (Certified Meeting Planner)	4%
Other	14%

Seventy-three percent of survey respondents belong to the NBTA (National Business Travel Association) as shown in Table 20.  Two-thirds of respondents belong to a regional travel association, and 37% belong to ACTE (Association of Corporate Travel Executives).

Table 20 Industry Associations
	Percent of  Respondents
Association	2003	2004	2005
NBTA (National Business Travel Association)	71%	66%	73%
Regional travel association	55%	50%	64%
ACTE (Association of Corporate Travel Executives)	34%	34%	37%
MPI (Meeting Professional International)	6%	8%	13%
NAPM (National Association of Purchasing Management)	N/A	8%	7%
SCTM (Society for Collegiate Travel Management)	N/A	11%	5%
Regional purchasing managers association	5%	2%	4%
CAOBT (Canadian Alliance of Business Travel)	N/A	N/A	2%
SGTP (Society of Government Travel Professionals)	N/A	N/A	1%
Other	15%	15%	9%
Total exceeds 100% because of multiple answers.  N/A = Not Asked

Other interesting facts:

• Fifty-three percent of travel professionals believe their job junction is viewed as more important than five years ago.
• A like percentage, 55%, believe the current economic climate will strengthen their travel management position.
• Job security remains the number one career issue as reported by 28% of respondents.
• Overall, travel professionals are very satisfied with their jobs with 59% rating their job a 4 or 5 (on a scale of 1-5 with
5 being highly satisfied).
• The average respondent intends to work for their current employer for an additional nine years.  In addition, respondents intend to work within travel management for another nine years.

What are some likely career moves of respondents?

• Meeting planning on an ad hoc basis
• Retirement
• Training and development
• Consulting
• Strategic sourcing
• Business development
• Develop a centralized meeting and event department
• Work for an organization with a larger travel budget
• Marketing

Corporate travel professionals have many departmental goals and improvements on their 2006 agenda. How does your list compare?

√ Communicate more effectively with travelers and management
√ Improve travel information and reporting
√ Reduce organization’s travel expenses
√ Negotiate more effectively with airline, hotel and car rental suppliers
√ Increase travel policy compliance
√ Update travel policy
√ Improve expense reporting and auditing systems and processes
√ Establish/use an online booking tool
√ Improve corporate meeting services
√ Gain buy-in from senior management on importance of travel management
√ Establish travel alternatives
√ Centralize travel agency(ies)
√ Implement global travel program
√ Purchase T&E System
√ Centralize travel services
*Based on 101 responses to a November 2005 survey

Are you providing your clients the value they are looking for?

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