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How Can We Make Our Corporate Travel Management More Cost-effective?

How can we make our corporate travel management more cost-effective?

According to the Global Travel Management Association (GBTA) negotiated discounts, better policy management and more efficient processes lead to the biggest business travel savings. This information comes from a new study where nearly 200 U.S. based travel managers of companies with a global or multi-national presence were surveyed. Results of the survey show that these three key items delivered by a TMC save companies money over the long-term. In fact, using a TMC to manage your travel needs represents a 10-20% savings in your travel and entertainment budget line item.Poor corporate travel management can impact businesses in many ways – from missed bookings to higher costs, and even compliance issues. Therefore, it’s important to know the risks that you can face when working with a young or mismanaged corporate travel company so that you can know what precautions to take. Otherwise, the costs can be downright detrimental to your business.

Increased Expenditure

 

The first and most obvious result of bad corporate travel management are higher costs – more money spent as a result of mishandled bookings or lack of reporting. As the second largest controllable expense for most companies, travel spend should be easily trackable to keep employees from going off budget. How’s money being spent? Who’s spending it? Are any losses occurring that are the cause of missed flights or extended stays? These are all questions that you want to consider, and ensure your corporate travel management company can report on, so you can make business and travel decisions accordingly.

Managing KPIs and meeting performance targets.

Setting and measuring KPIs (key Performance indicator) is easier when you’re only dealing with one supplier. Performance is easier to keep track of, so you can see what’s working and what isn’t at a glance. TMCs can provide regular reporting and added transparency regarding your corporate travel costs.

Keeping track of budgets and travel spend.

Trying to ensure multiple employees stay on budget and adhere to company policies when they are booking their corporate travel can be challenging. If you have a strong policy in place, you’ll minimise non-compliance.

Increasing staff productivity

When they don’t have to spend time arranging travel, your employees can focus on what they do best. This can improve productivity because staff will not be distracted with travel concerns that can take hours to manage. Instead, they can do the jobs they’re hired to do.

More effective problem-solving

If an employee gets stranded at the airport, misses their connecting flight or loses their luggage, an experienced TMC will know how to handle the situation in the most effective, cost-saving way. This reduces the likelihood that a travel mishap will lead to a budget blowout or other unfortunate consequences.

Negotiated discounts

Most TMCs have negotiated discounts with providers including car hire companies, hotels and airlines. Working with them lets you access these discounts and save money.

Technology tools

Business Consulting meeting working and brainstorming new business project finance investment concept.

Good TMCs use technology to their advantage. Online booking tools help simplify the process of booking travel and allow you to access the best fares and rates possible on even rail and ferries. This not only saves your business money, it saves time as you know your employees are taking the fastest route from A to B (and C, D and E).

For businesses that rely on travel for their survival and growth, the cost can be significant. Outsourcing your travel management affords you the dual benefits of being able to save, while also getting a better level of service.

Travel Policies understanding

Corporate travel can cause serious issues, especially when employees do not understand the various travel policies from their respective companies. They do not know when they need to get authorization to make certain reservations or purchases. They forget which airline, rental company, or hotel the company has deals with. Or, they do not know the price threshold of when they should be looking at other airlines or hotels. A travel management company solves all these issues. Individual employees no longer make any of these reservations or purchases. The CTM is dedicated to following your company’s policy to the ‘t’ and even finding ways to improve it so that additional money can be saved.

Reporting

Every company needs data. They need documentation. They need information. It helps them to analyze and improve. When travel planning is spread out from employee to employee, it can be difficult, if not impossible, to synthesize all of this data, documentation, and information. Employees lose their itinerary emails, and they forget to ask for a receipt. With a CTM, this problem goes away. Human resources and finance no longer have to spend their working hours chasing employees down to get what they need. With a CTM, the business is given a regular report on the travel spend of each and every employee. It is all in one place, it is automatically updated, and it is available 24/7.

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