For several enterprises, corporate travel stands as a vital element of their day-to-day functioning. The objective is to efficiently and economically send team members to conferences, meetings, and various engagements. Corporate travel management companies can provide immense value in handling the complex logistics of business travel. A corporate travel management company partners with a business to manage all aspects of corporate travel. This includes travel booking, expense reporting, and analysing data to improve future travel spend. The goal is to streamline processes and improve compliance, visibility, and traveller satisfaction.
In this blog, you will explore six of the top benefits corporate travel management companies can provide for your organization if you are considering outsourcing business travel management.
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Cost Savings
Cost savings is one of the most impactful benefits of using a corporate travel management service. By leveraging bulk buying power as well as preferred supplier relationships, they can secure discounted rates for flights, hotels, rental cars, etc. Unlike employees booking travel independently, corporate travel management platforms bring insider knowledge and discounts to the table.
Centralizing travel management also provides visibility into spending. Knowing where money is being spent allows managers to identify wasteful initiatives as well as introduce travel policies to curb expenses. Forecasting, budgeting, and negotiating better rates becomes easier with comprehensive travel data.
According to estimates, businesses can achieve 10-25% in travel cost savings by working with a dedicated corporate travel management firm. The savings add up, especially for companies with frequent business travel needs.
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Improved Compliance
Compliance to travel policies is another key advantage of corporate travel management programs. When employees book independently, it is difficult to track if company guidelines are being followed for the class of service, hotel selection, rental cars, etc.
A travel management company will enforce pre-defined corporate travel booking policies. Non-compliant reservations can be identified and addressed to prevent policy violations in the future. Bringing travel in alignment with company protocols improves cost control and duty of care for business travellers.
Consolidated travel data also makes it easier for risk management and human resources to monitor duty of care and ensure compliance to regulatory requirements. Ultimately this reduces legal liability for the organization.
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Traveler Safety and Security
Business travel management specialists enhance traveller safety in several ways. First, they monitor travel advisories, news, and political events at destinations across the globe. This allows them to proactively notify travellers of potential risks at certain locations.
Second, consolidated travel data gives companies greater ability to respond and provide assistance in case of emergencies or natural disasters abroad. If an employee books outside the managed program, their location and contact information may be unknown to the company.
Many corporate travel management firms offer integrated risk management services tailored to an organization’s unique travel risk profile. Traveler tracking, emergency response services, and global intelligence help protect road warriors abroad.
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Travel Reporting and Analytics
Robust reporting and analytics are a major advantage of managed corporate travel programs. Online booking tools and TMC technology platforms provide a wealth of data for optimizing travel.
Customizable reports can analyse spend by department, employee, destination, supplier, etc. Travel managers can identify wasteful spending and opportunities for negotiation. Travel trends further help inform travel policy and budget decisions.
Data mining assists in identifying gaps in preferred supplier coverage. Travel patterns may inform sourcing decisions to improve compliance and pricing. Benchmarking against industry peers can also establish targets for performance improvement.
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Improved Travel Experience
A managed travel program results in an improved experience for business travellers through various mechanisms. For one, preferred travel supplier relationships translate into increased service levels, amenities, and rewards for frequent business travellers.
Second, travel management firms invest heavily in online booking and mobile technology. Self-service options streamline trip planning and help employees manage end-to-end travel. Travelers can instantly access itineraries, rebook flights, receive destination alerts, file expenses, and more.
Finally, dedicated corporate travel agents assist travellers before, during, and after trips. Their destination knowledge, special access, and ability to solve problems enhances the travel experience.
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Administrative Efficiency
Corporate travel management improves efficiency for travel administrators and managers within an organization. Instead of overseeing the program in-house, it is outsourced to specialists with advanced systems and processes.
Resources spent coordinating travel logistics, enforcing policies, negotiating with suppliers, and generating reports can be redirected towards more strategic initiatives. Travel management is incredibly complex – offloading the administrative burden drives productivity.
As a third-party, travel management companies also cultivate institutional knowledge of the intricacies of corporate travel. This level of insider expertise is difficult for an organization to develop on its own. Outsourcing therefore brings greater efficiency for travel oversight roles and HR.
Conclusion
Corporate travel management firms streamline business travel from end-to-end. Key benefits for companies include significant cost savings, improved compliance, enhanced duty of care, rich data reporting, better travel experiences, and administrative efficiencies.
With increasing workforce mobility, complex supplier relationships, and data-driven decision-making, third-party specialists are well-positioned to provide robust, scalable solutions for business travel management. By partnering with corporate travel experts, companies can focus resources on core operations and strategic projects.
