Online Booking Tools (OBTs) in Corporate Travel

Understanding Online Booking Tools (OBTs) in Corporate Travel: A Comprehensive Overview

Introduction

The evolution of corporate travel has introduced a broad spectrum of options tailored to meet various business needs. From outsourcing travel management to professional agents to leveraging modern tools, businesses have more flexibility than ever. A crucial component in today’s corporate travel ecosystem is the Online Booking Tool (OBT). This article will explore the rise, functionality, and benefits of OBTs, as well as their current relevance in the business travel industry.

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The Rise of Online Booking Tools in Corporate Travel

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Historically, businesses relied on travel agents or directly connected with suppliers such as airlines, hotels, and car rental companies to arrange travel. Travel Management Companies (TMCs) have long served as intermediaries between corporate buyers and suppliers. This relationship centered around Global Distribution Systems (GDSs), which acted as the backbone of business travel by providing access to flight inventories, hotel availability, and car rentals.

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With the advent of the internet in the late 1990s, self-service online tools for leisure travel became popular. Platforms like Expedia and Priceline revolutionized how consumers booked travel. Corporations, seeing the value of these innovations, sought similar solutions that allowed employees to book travel without depending on travel agents. This demand gave birth to the first Online Booking Tools (OBTs) that served the corporate sector. These early OBTs offered self-service options tailored to business needs, enabling corporations to manage travel bookings independently.

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Today, the market for OBTs is diverse, with major players like Sabre’s "GetThere," Amadeus’ "Cytric," and Travelport’s "Locomote" leading the way. TMCs have also developed their proprietary tools, such as AMEX GBT’s "Neo," BCD’s "TripSource," and FCM’s "Lightning." Additionally, new and innovative platforms like "SAP Concur," "Atriis," "Navan," and "TravelPerk" have emerged, further broadening the landscape.

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How Online Booking Tools (OBTs) Work

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Corporate travel is more complex than leisure travel due to various factors such as company policies, negotiated rates, and risk management. An OBT integrates these elements while maintaining ease of use for employees.

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1. Inventory Sourcing and Integration:

???OBTs connect with a wide array of suppliers, including GDSs, NDC aggregators, and direct supplier integrations (e.g., airlines, car rentals, and rail systems). This ensures a comprehensive selection of travel options tailored to corporate agreements and negotiated rates.

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2. Policy Compliance:

?? One of the most critical functions of an OBT is enforcing corporate travel policies. This includes filtering search results to display preferred vendors, applying budget constraints, and ensuring travelers adhere to company guidelines. For instance, an executive might have access to business class flights, while regular employees are restricted to economy options.

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3. Traveler Profiles and Preferences:

?? OBTs store individual traveler profiles that include preferences (e.g., seat preferences), travel history, and loyalty programs. This allows for a personalized booking experience while aligning with company policies.

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4. Risk Management:

?? OBTs incorporate travel monitoring and risk assessment features to ensure duty of care. This includes real-time alerts for disruptions (e.g., flight cancellations, strikes) and centralized communication channels to assist travelers during emergencies.

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5. Expense Tracking and Analytics:

?? Integrated expense management tools track and categorize travel-related costs, streamlining the reimbursement process. These tools also provide detailed reports on travel expenses, policy compliance, booking patterns, and vendor performance.

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Corporate Use Cases for OBTs

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There are several scenarios in which corporations implement OBTs:

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- Travel Managers Only: Some corporations centralize all travel bookings through internal travel managers using the OBT.

- Self-Service OBT: Employees are granted access to the OBT, allowing them to book travel independently.

- Hybrid Models: A combination of OBT self-service and offline TMC support is often used, especially for complex bookings or scenarios where policy compliance needs additional oversight.

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Pros and Cons of Using OBTs vs. TMCs

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Advantages of OBT

1. Cost Savings:

???Using an OBT can reduce transaction fees and lower overall travel costs. Businesses can also implement mechanisms requiring employees to justify any bookings that deviate from the lowest available options.

2. Policy Compliance:

???OBTs ensure that bookings align with company policies, such as preferred vendors and budget limits, reducing the need for manual oversight.

3. Enhanced User Experience:

?? Features such as itinerary management, sophisticated filtering, and mobile-friendly interfaces make OBTs convenient for travelers both before and during trips.

4. Centralized Reporting:

?? With all travel data consolidated in one place, businesses can generate comprehensive reports, track budget performance, and measure the effectiveness of their travel programs.

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Challenges and Limitations of OBTs

1. Content Limitations:

?? OBTs may have restricted access to non-GDS content or region-specific suppliers. In some cases, TMC agents can find better offline options.

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2. Multi-City Itineraries:

?? Complex itineraries involving multiple cities are challenging to manage through OBTs. TMCs are often better suited for these bookings due to their flexibility and expertise.

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3. Change and Cancellation Support:

?? OBTs often lack robust features for handling changes or cancellations, especially when refunds are in the form of credits or loyalty points. TMC agents are usually better equipped to manage these scenarios.

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4. Human Expertise:

?? Experienced travel agents can often arrange more efficient itineraries due to their knowledge of price patterns, supplier pairings, and hidden cost-saving opportunities.

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5. Policy Configuration Challenges:

??Rigid policy management in OBTs can be problematic in unconventional situations, such as exotic destinations. Travel managers may need to manually intervene or contact the TMC when the OBT fails to offer suitable options.

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Conclusion

Online Booking Tools have become a cornerstone of modern corporate travel management, offering efficiency, cost savings, and enhanced compliance. They reflect the technological progress that continues to shape the travel industry. However, OBTs are not without their limitations. Challenges such as content access, multi-city capabilities, and the need for human expertise highlight areas where TMCs still provide valuable support.

As businesses continue to evolve their travel programs, the integration of OBTs with TMC services will likely remain a common strategy. This hybrid approach allows companies to harness the strengths of both automated tools and human expertise, ensuring a well-rounded and effective travel management solution.

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Ultimately, while OBTs offer significant advantages, they are part of a broader travel ecosystem that balances technology with personalized service, ensuring that business travel remains efficient, cost-effective, and aligned with organizational goals.

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