Cutting corporate travel safety costs not feasible

Rising business costs could tempt a number of Aussie organisations to take budget options when booking travel accommodation for their workers, which could open them up to direct safety concerns.

World Travel Protection’s general manager of global protection, Rodger Cook, warned Aussie businesses of the risk of cutting travel protection costs for their workers who go abroad.

According to World Travel Protection, there has been a 17 per cent surge in emergency evacuations and repatriations across business and leisure travel this year, with calls for assistance having also increased by 18 per cent compared to 2022.

“With rising travel costs, more businesses are opting for cheaper accommodations or booking longer, multi-leg trips to save money,” Cook said.

“It’s important to recognise what may be compromised by making these decisions. When you place a solo female traveller in a budget hotel on the outskirts to cut costs, you’re significantly increasing her safety risks.”

In a similar fashion, longer-haul fights can pose a safety risk in their own right, as limited time on the ground exposes workers to traveller fatigue.

“In today’s world, there’s no excuse for complacency. Knowing where your employees are and understanding the risks they may face is a basic requirement of due diligence. Tailored travel risk management is essential,” Cook said.

In a survey of Australian business travellers commissioned by World Travel Protection, three-fifths said they had seen travel budgets cut or remain in a higher-cost environment. Twenty-five per cent also stated that they had to stay in lower-cost accommodation, and 19 per cent said they have been asked to fly at cheaper times or use a non-direct route.

Numerous incidents, from small to large, can arise when workers are put in these situations.

“The incidents we handle vary in scale and complexity, from stolen passports to coordinating medical assistance to orchestrating large-scale evacuations during a military coup,” Cook said.

“It’s alarming how easily someone can become a target. Every year, we see increasing numbers of business travellers falling victim to theft, drink spiking and scams.”

However, with the current tension in the geopolitical landscape, Cook said it was important for employers to recognise that just having insurance is not sufficient. Insurance helps protect the organisation from financial risk, yet it is a reactive approach that fails to protect travellers from alarming incidents.

“Travellers want to know that if they’re caught stranded by cancelled flights or impacted by a natural disaster, help is available around the clock. With these major global incidents, and the pandemic fresh in travellers’ minds, the concept of duty of care has evolved,” Cook said.

“Assisting employers in navigating global travel risks involves a proactive approach, emphasising preparedness and comprehensive training.

“More mature organisations are implementing destination-specific training, tailoring guidance based on where employees are travelling and the nature of their activities.”

He cited the July 2023 military coup in Niger as a case in point.

“During that coup, we swiftly evacuated several affected travellers. Companies without such support struggled, and it was a traumatic experience for those left behind,” Cook said.