GENERATION Y are
slowly but surely
making their way
to middle management
level and travel buyers are
reporting that this “traveleager”
group can be difficult
to manage when it comes to
policy compliance.
These travellers are often
new to management and
excited about all it entails,
viewing travel as glamorous
and feeling they have the
right to splurge on business
trips.
Indeed, millennials are
travelling more than any
other age group, according
to a recent Expedia research
study, The Future of Travel.
The report reveals that
professionals between the
ages of 18 and 30 average
five business trips a year,
compared with just two for
those aged 35 years and up.
Generation Y love to travel,
whether it is for leisure or
business, and travellers
in this age group are also
known to be big spenders,
especially when travelling on
the company dime. According
to Expedia, 37% of business
travellers aged 18 to 30
claim they spend more of
their company’s money on
room service than they would
of their own, compared with
21% of their peers between
the ages of 46 and 65 who
are more conservative when
spending the company’s
money. They are also quicker
to shell out company cash on
fine dining than their more
seasoned colleagues.
As such, TMCs need
to provide line managers
with as much factual
information as possible
about traveller behaviour
and non-compliance with
travel policy, says Kim
Parker, head of Business
Development: Corporate –
Sub-Saharan Africa for Wings
Travel Management. “These
reports will highlight the cost
implication of the traveller’s
behaviour on the company’s
travel budget. Reporting
on lost savings because of
traveller behaviour is critical.”
The TMC should have a
solid reporting system in
place, as regular reporting
is key when trying to
understand traveller
behaviour and potential
budget problems, agrees
Johan Perrson, head of
Global Account Management
at Radius Travel. The TMC
can also assist with peer
analysis. “Understanding
what other companies are
doing is very important and
considered good practice.”
How do Gen Y managers think?
Gen Y travellers are typically
young – in their late twenties
or early thirties – and new
to management. They see
travel as a status item that
makes them feel important
and boosts their ego, says
Johan.
Although he notes that
Generation Y have a strong
feeling of entitlement when
it comes to travel, he adds
that this behaviour is not
exclusive to millennials.
“Typically, people who are
new to management and
new to travel see travel as a
way to explore the world.”
Monique Swart, founder
of ABTA, agrees that
middle management can
be a challenge in certain
organisations but believes
this is not an industry trend
yet. She adds, however, that
it could become a trend
soon as more Generation
Y travellers are moving
into middle management
positions.
These ‘difficult-to-manage’
middle managers have
typically been in the
workplace for between
eight and 15 years and
are now moving into more
senior positions within
their companies. They tend
to take up more ‘tech’ or
‘creative’ oriented jobs.
Kim says travel-eager
middle-management
travellers tend to book at the
last minute; fly on airlines
that are not the cheapest
but provide frequent flier
benefits; stay at hotels that
are personally preferred but
not in policy; hire automatic
cars that are out of policy
instead of manual cars
that are in policy and fly in
business or first class when
economy class is mandated.
“These travellers are more
environmentally conscious
than the older generations.
They want what they want
and want it now. They don’t
like red tape, process and
long-winded policy when
they know they can do it
all themselves now using
technology. They look for allround
job satisfaction, worklife
balance and experiences
while travelling. They are also
more likely to use Uber and
Airbnb,” adds Monique.
Kim points out that
company culture plays a
big part in allowing these
travellers to have free rein.
“Companies with senior
management and C-level
management who lead by
example and comply with
the travel policy will have no
tolerance for travellers who
travel outside of the policy.”
