Savings, defined here as the gap between published and negotiated price, is at the heart of most negotiations; it is procurement’s guiding light. It’s been this way for the past 20 years, and we take its god-like status for granted. But savings is a false god, leading its worshippers down the wrong path. Capturing savings builds false confidence. More savings does not mean safer, healthier or more productive travel. Just the opposite. Research shows that compared with traveler-focused programs, cost-focused programs produce 22 percent fewer effective trips, 12 percent more wasted trips and less productive and more stressed travelers with higher attrition risks. Any savings achieved pales in comparison to these much higher costs. Savings is a lazy substitute for value. Awarding contracts based on savings lets travel buyers duck the hard job of measuring the quality and value of their suppliers. Using savings as a proxy for value does a disservice to most every supplier. Savings has no financial value. Budget owners and travelers spend money, so they care about prices, not savings. Their worlds would not change one bit if savings were never reported. Let that sink in. Get the full story at BTN