INSIGHT
Understanding travel credits in corporate travel programs
Corporate airline travel credits can be difficult to keep track of across a large enterprise organization.
This guide breaks down what you need to know about managing travel credits.
Key Takeaways
- Understand what a travel credit is, and how they work.
- Learn the risks of unused credits, and how to track them effectively to benefit your program.
- How to maximize credit value for your budget and travel program effectiveness.
What is a travel credit?
A travel credit is a digital, non-refundable voucher issued by airlines or hotels to rebook canceled or changed travel. It acts like a future booking credit, and they are issued when there has been a delay or cancellation.
Credits can be issued due to cancellations by bad weather, engineering, crew issues, or unusual circumstances.
Usually in corporate travel, a credit applies to air tickets.
An air credit:
- Can’t be used with another airline or supplier.
- Represents the value of the original air ticket.
- Expires, usually in 12 months, but it’s best to check with the airline.
Any amount not used will be lost once the new ticket has been issued. Quite often, the airline will require the new ticket to be of the same, or greater value than the original.
How do travel credits work in corporate travel?
Business travel credits can quickly accumulate for large enterprises that have employees traveling frequently.
Credit is not held in your corporate travel management company’s (TMC) account, but needs to be managed by them. This is for auditing purposes, and helps ensure that company bookings aren’t exchanged for personal travel. Sometimes, travel credits are considered owned by the company or department that paid for the ticket.
How to use a travel credit with a TMC
It is your TMC’s responsibility to apply credits when ticketing. Sometimes, travel credits can be automatically applied to a travel booking.
Otherwise, some follow these steps to apply travel credits:
Upon completion, the TMC is notified when there is an unused ticket on file to be applied to the reservation.
Airline policy differences that affect travel credits
Each airline has a different approach to credits, so it’s important to check the terms and conditions for your flight.
Types of airline credit include:
Type of credit | Credit description |
Same as cash value | Some airlines treat credits as the same value as cash. If your new flight costs less when you rebook, you may be able to use the remaining balance towards another flight. |
Ticket-for-ticket exchange | Some airlines only allow you to exchange one ticket for another, regardless of the price. So if the new ticket is cheaper, you lose out. |
Exact trip exchange | Your travel credit might only be eligible for the same trip including the same departure airport, same destination, and same connections. |
Risks of unused or mismanaged travel credits
Unused airline credits mean missed savings opportunities for large organizations.
Due to their expiration dates, it’s important that travel credits are used before they are no longer valid, as that money cannot be refunded or claimed back another way.
Think about it this way - if you had a tonne of vouchers for a store that you knew were due to expire, you would want to use them to save money. The same applies to credits in your managed travel program.
It’s important to remind business travelers to use travel credits, if applicable to their trip.
How corporate travel teams track unused credits
There are several ways that companies can introduce a corporate travel credit policy, and keep track of unused credits.
Through FCM Platform’s reporting suite, travel managers can view exchange ticket activity, and track unused travel credits before they expire.
Case study: For a leading tech firm, FCM consolidated individual tickets with restrictive booking rules into one consolidated UATP balance. This meant that credits could be applied to any qualifying purchase, and, thanks to the automation, it wasn’t relying on travelers to use tickets themselves. This approach alone generated nearly US$6 million in recovered value.
And with FCM’s customized pop-ups, we can alert travelers to use travel credits at time of purchase.
How to get the best value from your travel credit
- Automate the tracking and usage process with your TMC wherever possible.
- Get visibility of how many travel credits you have.
- Ask travelers to get refunds instead of credit where possible, as it’s more flexible.
- Don’t wait too close to the expiration date to use the travel credit.
- Find out if your credits can be transferred between business travelers in your organization.
- Use high-value credits to purchase multiple cheaper flights, if permitted.
At FCM, your travel consultant can advise you on the best available options, and help you get the most value from your credit.
Frequently asked questions about travel credits
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Can I just get a refund?
Advise travelers to opt for a refund, if it’s offered as an option. Non-refundable tickets can not be refunded for cash. The total ticket amount is held in credit, and the original conditions apply.
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Can my travel consultant apply my credit to a new booking?
Yes - at FCM, your travel consultant will know which travel credits are available, and can be applied to your trip.
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If I miss my flight, can I still receive a travel credit?
If a passenger has missed a flight, then this ticket will not be available for credit. It’s important to let your travel consultant as soon as possible if you won’t make a flight.
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Can someone else use my travel credit if I can’t travel?
Yes, someone else can use your business travel credit, especially if it’s considered to be owned by the company or department that paid for it. It’s best to call your TMC’s travel team, who can advise if a name change is possible.
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How long are travel credits valid if I’m unsure when I’ll travel?
Travel credits are usually valid for at least 12 months, but it’s best to check with the airline you booked with. If your airline credit is considered owned by your organization, it could be used by a colleague.
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Do travel credits expire?
Yes, travel airline credits are usually valid for at least 12 months, but it’s best to check with the airline you booked with.
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Can travel credits be transferred between employees?
Yes - some enterprises’ corporate travel credit policy states that credits are owned by the company or department, and therefore can be used by others.
