Understanding behavioural economics can lead to travel program policies which deliver a seamless booking and travel experience – while reducing traveller friction.
A hot topic for business in 2018, Behavioural Economics, is a relatively new field that combines insights from psychology, judgment, decision making and economics to generate a more accurate understanding of human behaviour (Harvard Business Review 2017).
Put simply, behavioural economics looks at how people make decisions about what they will buy and how much they will pay – and what factors drive these decisions. In a corporate travel program scenario, the decisions your travellers are making daily can have a significant impact not only on your organisation’s bottom line, but also on traveller wellbeing, productivity and morale.
The good news is that a well-planned travel program with solid policies, compliance and strategies in place can positively influence travellers to make better choices about their trips – and increase the effectiveness of your travel program.
By understanding behavioural economics, subtle changes to travel policies can be implemented to ‘nudge’ people to behave and choose in certain ways.