ACCORDING to business travel specialist Corporate Traveller, mining companies have been able to chip hundreds, if not thousands, of dollars off their annual travel spend by incorporating best fare of the
day (BFOD) and best rate of the day (BROD) strategies into their companytravel policy.
When using a BFOD and BROD strategy, a company’s travellers will be advised to select the cheapest airfare or hotel rate of the day across a range of suppliers.
Corporate Traveller’s general manager WA Stephan van Arnhem said companies using a BFOD rule in their travel policies were saving between 20 and 30 per cent on their annual airfare expenditure.
“Their overall spend is generally less and they’ll also be seeing the cost benefit of increased compliance, which can also lead to greater travel savings,” he said.
Mr van Arnhem said BFOD ensured companies secured the cheapest fare available in an open sky environment, rather than with one select carrier. “An open sky approach to buying airfares also means that businesses can access a broader selection of travel times, prices and options that are being offered by multiple air carriers at any one time,” he said. By using Corporate Traveller to secure a BROD, mining companies can also make the most of their travel manager’s bulk buying power, extensive world-wide network and travel alliances with a raft of reputable hotels and car rental companies. “What we’re saying to procurement is that there are other alternatives out there within your budget, and suppliers are hungry for a piece of the pie so let’s get the best out of what the market is offering,” Mr van Arnhem said.
“In saying this however, BFOD and BROD may not be the best fit for all businesses. “Some of our clients with large volumes of travel have airline, hotel and car contracts in place with a preferred supplier and use Corporate Traveller’s negotiating skill to secure a deal that is best suited to their individual requirements.”