The cost of failure
When business travel plans go awry, the impact is substantial. That’s according to research conducted by the Global Business Travel Association.
A delayed or cancelled flight, by far the most common issue, affects 87% of business travelers each year. And the impact is significant, causing lost hours. missed meetings, incremental costs to re-arrange … In fact, the survey suggests the average cost is $1457, plus missed work hours.
The reason I find this interesting is because disrupted travel is essentially similar to a disrupted contract. We thought we had a commitment, we planned on it being executed … and the commitment was not honored. Assessing the cost impact in this way is relatively rare. Also, as the survey points out, if travel managers understand the relative frequency of different types of disruption, they can better plan for them and reduce either the likelihood or the consequences that arise.
Essentially, this is just another example of the importance of contract managers assessing impact and monitoring overall frequency so that they can drive improvements for their business, both as a buyer and a seller.