Despite Economy, Travel Manager Compensation on the Rise

Travel managers are continuing to enjoy annual salary increases, with the typical manager receiving 3.4% more in base salary in 2012 than in 2011, according to the Global Travel Association’s annual “Travel Management Compensation & Benefits” survey.

“We’ve been seeing year-on-year increases of 3% to 3.5% for travel managers over the past few years,” Joe Bates, vice president of research for the GBTA Foundation, told Travel Market Report. “Travel managers took a small hit during the Great Recession, but their salary increases have been running a little ahead of inflation for several years.”

Bonuses and base salaries both up
The average base salary for respondents in the 2012 survey was $85,488. Respondents reported an average bonus of $13,467, for total annual compensation of $93,232. That amount is up 3.4% from 2011.

Travel directors did a little better than average, gaining 4.1% over 2011, while travel coordinators lagged with a 2.7% average increase over 2011. Travel managers hit the average with a 3.3% increase over 2011.

Not surprisingly, Bates added, experienced travel managers tended to make more in both base salary and bonus. Compensation also increases as domestic travel spend increases. Average compensation for manager who oversee a domestic travel spend of less than $2.5 million was $71,847.

Tie-in with overall spending
Average compensation jumps to $87,176 for companies that spend between $2.5 million and $10 million on domestic travel. Average compensation hit $111,616 for companies that spend more than $10 million annually on domestic travel. While compensation was not segmented by non-domestic travel spend, 68% of respondents reported that their program covers travelers in countries outside the U.S.

Respondents reported an average of 12% growth in their domestic T&E budgets for 2012. International T&E budgets grew by an average of 7%.

Why compensation is growing
So why does travel manager compensation keep growing in an economic environment where cost containment is job one at most companies? Because they are doing their jobs effectively.

“Companies continue to see the value of travel management and individuals who are expert at managing the travel process,” Bates said. “These compensation changes are a reflection of the financial value that companies see in travel management.”

Other compensation
Companies are rewarding their travel managers with more than direct compensation. Most respondents (90%) said their companies paid professional association dues in full. Almost as many (86%) said their companies paid the full cost of attending conventions and other professional meetings or events. About three-quarters (74%) said their employers also covered expenses connected with continuing education.

Managers playing multiple roles
Survey respondents also said that they play multiple roles within their companies. The top responsibilities include administering the corporate travel program (87%) and negotiating with vendors (87%). Nearly as many (87%) evaluate and implement new technology for travel management and 84% are responsible for strategic development of travel policy.

Most of the respondents were women (77%). But men reported benchmarking their travel program significantly more often than women, 86% to 70%. Half of the respondents were age 50 or older.

Far from the norm
Consistent compensation increases for travel managers are in dramatic contrast with most other employees. Average household income in the U.S. fell slightly in 2012, Bates noted.

According to the Census Bureau, median household income is down about 8% since 2007, the year before the recession. Travel managers, by comparison, have enjoyed net increases over the same period.