A Complete Guide to Corporate Travel Management

Corporate travel management is arguably one of the most nerve-racking aspects of many businesses. This is quite ironic, especially as traveling sits atop the list of most exciting experiences that people can have in their employee experience.?

What then is responsible for this disparity? Companies’ traveling structures? The inefficiency of corporate travel management systems? Or a change in employees’ behaviors towards corporate travel? Perhaps, it is an intricate combination of all three!?

What is Corporate Travel Management?

Corporate travel management is the overall practice of tracking, supervising, and reporting the processes and travel-related expenses that companies incur. It is an umbrella term that covers travel arrangements, approvals, tracking, and management of travel expenses.?

Most companies take this part of finances seriously. This is quite understandable, especially as it accounts for the second-largest expense after salaries. According to business research, companies earn more when effectively managing their corporate travel expenditure.?

Specifically, they make up to $12.50 or even more in incremental revenue for every $1 they invest into business travel. Thus, it is common knowledge in the business world that travel is an essential business need that comes with consequent high costs.?

Over the years, words like “compliance” and “control” have dominated conversations around corporate travel management. Consequently, companies have sought to keep costs at lower levels by enforcing boundaries of choices for employees.?

They believe that they can reduce costs and improve the ROI associated with corporate travel by directing the whole process. These costs range from flight bookings and miscellaneous expenses to more personal choices like accommodation and feeding.

However, employees worldwide do not seem comfortable with such stringent methods. They desire to own the process and make personal decisions around business travels. This is probably the most important factor causing the ongoing paradigm shift in corporate travel management.?

Internal micromanagement is slowly giving way to transparency, simplicity, and freedom. In all, having a well-managed travel program or introducing travel management software helps to strike the much-needed balance in corporate travel management.

What Does a Corporate Travel Manager Do?

To understand what a corporate travel manager does, let us look at who a corporate travel manager is and why the role is essential. A corporate travel manager is an in-house employee of a firm who manages the firm’s travel programs and business trips.?

The person is responsible for all such arrangements in the organization, working closely with the finance team. When external personnel handle these duties, the term ‘‘Corporate Travel Agent’’ is used.?

Corporate travel managers are notably among the staff of the organization they work for. They work hand-in-hand with core teams like Finance, Human Relations, and even the executive management team. Their role in most organizations cannot be over-emphasized, as they are majorly responsible for setting the company’s corporate travel policy.?

In addition, they handle care and risk management for the company. They also help the company navigate business traveling in efficient and cost-effective ways. Indeed, they are the backbone of corporate travel management for many companies.

Having discussed who a corporate travel manager is, let us carefully consider their roles in an organization.?

For smaller companies, one travel manager may efficiently work across all teams. But as the company continues to grow, corporate travel management will require an entire team of people.??

Here is a straight-to-the-point list of what corporate travel managers do.?

1. They book trips for travelers.
2. They help departments to stay within the travel expenses budgeted for them.
3. They provide travel support to employees throughout the trip’s planning and duration.
4. They book group travel.
5. They organize ground transportation like rental cars for traveling staff.
6. They negotiate corporate rates for frequently patronaged hotels.
7. They analyze the amount the company spends on travel, or work with the Chief Financial Officer to create analyses based on travel reports.

How Does a Travel Management Company Work?

A travel management company can naturally fall under multiple categories. It may be a travel agency or an online booking platform for personal or corporate travel. Additionally, the online platforms and travel software programs often allow for self-booking while providing 24/7 travel support.

Generally, travel management companies are in charge of everything related to travel management. They work by first understanding the firm’s travel needs and costs. Then they provide staff with the tools needed for efficient traveling arrangements. They ensure this by offering self-booking, group booking, and concierge booking. Additionally, they offer travel support, track budget, and report travel expenditure.?

?The Biggest Challenges for Corporate Travel

Indeed, many issues face corporate travel, but two problems stand out as the biggest challenges facing the corporate travel management industry. These issues cut across companies’ general travel structure and their budgetary expenses. Let’s take a look at them.

1.???Keeping Spending Within Budget

Travel is a pivotal part of running a business. Consequently, it is widely viewed as being crucial to growth. However, the costs that accompany traveling can be difficult for companies to maintain and remain profitable.?

According to reports from Travelperk, a key reason why business managers have to turn down travel requests is as a result of the high costs. Since many businesses don’t consider the low-cost inventory travel arrangements, they often over-spend unnecessarily.

?2.???Staff Freedom in Traveling

Cost management strategies often make it better for companies to book trips for staff, but most employees don’t want this. They want to manage their itineraries and have fun at it. They even argue that arranging their travel makes life easier for the organization’s admin and finance staff.?

There you go! A complete guide to Corporate Travel Management. If you draw from the knowledge shared in this guide, you will be able to fully understand how corporate travel management works, its perks, and its cons.?

The paradigm shift in corporate travel management is markedly something businesses must ensure to understand and overcome. In the end, corporate travel is decidedly essential for businesses. Thus, conversations around it should pivot to the benefit of both the companies and the employees. This balance is optimal for growth, and we are rooting for just that!