Billing for Travel Time: 70/30 Rule

Every few months, over the past few years, TPSA receives a member inquiry regarding travel time:

On October 21st, I posted on the topic of billing for travel time:

 

Do technology professional services organizations typically bill customers for the travel time incurred by delivery consultants related to the customer’s project?

There are three potential answers to this question:

1. The PS organization charges the customer for all travel time related to the project, regardless of when it occurs.

2. The PS organization only charges the customer for travel time that occurs during normal business hours.

3. The PS organization does not charge the customer for any travel time related to the project.

To date, we have seen no clear majority answer to this question in the industry. Yet, folks keep wondering what is the most common approach used by PS organizations. Well, this looks like a great opportunity to leverage the polling capability available on this blogging platform.

Today, I took a snapshot of the poll results:

Billing fo travel time

Billing fo travel time

 

So, through the power of crowdsourcing, we have an answer to this age old PS question. Roughly 70% of the responding PS organizations do indeed bill for travel time in some way. It is a clear minority practice not to bill for any travel time related to a customer project.   We can classify “bill for travel time” as the common practice for the industry.

Don’t forget, I currently have three open polls you can respond to:

VSOE and Travel Expenses

Assigning SKUs to PS Offerings

Tracking the Benefits of SKUs

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