Why Is This KPI Important?

When organisations face budget pressure, the immediate instinct is often to implement broad spending cuts. However, this approach can inadvertently eliminate high-value trips that drive revenue and growth. We believe the real opportunity lies in strategic elimination rather than blanket cuts (research shows 25-30% of business trips are low-value), focusing on what we call low-value trips. This not only helps you spend better, not just less, but also supports your environmental goals by reducing unnecessary Scope 3 emissions.

What It Measures

This KPI goes beyond a simple dollar figure, classifying trips based on their strategic value and potential for return on investment.

High Value Travel
● Client acquisition meetings and contract negotiations, which industry benchmarks suggest an average of $17 in revenue for every dollar spent on business travel.
● External supplier and customer meetings.
● Strategic partnership development & innovation.

Low Value Travel
● One-day trips could be handled with a single, longer visit.
● "Commuter-type" travel, such as multiple trips between the same locations.
● "Internal-type” travel, meetings that could be held virtually.
● "Entourage-type” travel, where multiple attendees from the same company travel to the same meeting.
● "Face time" HQ visits to attractive cities.

Strengths of This KPI

● Surgical Precision: This KPI provides specific, actionable guidance on which trips to eliminate versus which ones to encourage, avoiding broad, indiscriminate cuts.
● Dual Benefits: It simultaneously reduces travel costs and your company's carbon footprint with a strategic approach.
● ROI Focus: By linking travel decisions to business outcomes, it forces a conversation about spending better and ensures every trip delivers meaningful value

Limitations of This KPI

● Subjective Classifications: The determination of "value" can be subjective and may vary depending on the department or context.
● Relationship Building: The value of face-to-face time for building trust, community and long-term relationships is crucial but difficult to quantify.
● Implementation Resistance: Employees may resist restrictions on travel they perceive as essential, even if the data suggests otherwise.

How to Make It Actionable

At Unlocked Data, we believe that sometimes you must create new data, not just report on what already exists.

● Unlocked Data Trip Planner Tool: Our trip planner tool helps you do exactly that by capturing additional data points.
● Track Outcomes: After the trip, follow up to see if they achieved their stated objectives and rate the other positive outcomes, like relationships built or motivation gained. This turns your data into a living feedback loop.
● Set Thresholds: Use cost or distance thresholds to trigger additional scrutiny for high-spend or high-emission trips.

Should You Track This KPI?

Absolutely. This KPI is essential for strategic travel optimisation, especially when you need to reduce costs while maintaining business performance. However, success requires clear communication about the classification criteria and consistent application across all departments.

Companies are more focused than ever on making each trip count. This KPI provides a powerful framework for moving beyond the obvious. It helps you focus on value creation, ensuring that every journey delivers meaningful returns, whether they're financial, relational, or inspirational. It's about turning messy data into actionable insights.

If you're ready to rethink how you measure the value of business travel, let's start a conversation. After all, the most important data is often the data you haven't captured yet.

Rating: 5/5

What's your experience with trip purpose analysis? Do you find it challenging to classify travel value while maintaining strategic business relationships?

---