The corporate travel landscape is evolving rapidly, moving from rigid micromanagement to an era characterised by trust, transparency, and operational simplicity.
Historically, the focus has been on “control” and “compliance”—understandable given that business travel often ranks among a company’s largest operational expenses. However, with shifting travel norms and a new wave of talent entering both supplier and in-house travel teams, the focus is broadening. The new priorities center education, collaboration, and innovation as businesses reassess their travel programs, policies, and budgets.
This guide will explore how travel management’s role is transforming, outline strategies to streamline operations and highlight methods to achieve cost efficiency while ensuring employee satisfaction. If your organization is ready to navigate these changes strategically, you’re in the right place.
What is corporate travel management?
Corporate travel management (CTM) is a strategic approach to optimising every aspect of business travel. It’s not just about booking trips; it’s about creating a cohesive travel program that balances cost-efficiency, traveller satisfaction, and organisational goals.
Key elements of CTM include:
- Developing clear travel policies for employees.
- Managing bookings for flights, hotels, rental cars, and transportation.
- Crafting seamless travel itineraries.
- Negotiating discounts with airlines, hotels, and other vendors.
- Overseeing business travel expenses, reimbursements, and financial reporting.
- Prioritising traveller safety through risk management.
- Analysing travel data for cost-saving opportunities.
Why corporate travel management matters
Corporate travel management plays a critical role in maximising efficiency, saving costs, and ensuring employee well-being. Here’s why it’s essential:
1. Cost efficiency
Business travel can be one of the largest expenses for any company. A well-structured travel management program helps keep these costs in check. By negotiating preferred rates with airlines, hotels, and other vendors, businesses can leverage their buying power for better deals.
Additionally, setting clear travel policies prevents unnecessary spending and ensures budget compliance.
2. Boosting employee productivity
A streamlined travel program means employees can focus on what really matters: the business at hand. With pre-arranged travel plans and minimised last-minute bookings, employees can spend less time on logistics and more time on their work.
Plus, automated systems and support staff reduce administrative burdens, making their travel experience smoother and more productive.
3. Ensuring duty of care
When employees are on the road, their safety is a top priority. Corporate travel management plays a critical role in ensuring their well-being through thorough risk assessments, timely travel advisories, emergency assistance, and overall traveller security.
This “duty of care” is a responsibility that cannot be overlooked.
4. Enforcing compliance with policies
Internal travel policies set clear guidelines for bookings, preferred vendors, and expense limits. A robust travel management program ensures these policies are followed, minimising the risk of non-compliance.
This not only keeps the company on track with its guidelines but also ensures it meets any necessary external regulations.
5. Leveraging data for better insights
5. Leveraging data for better insights Centralising travel data—from bookings to expenses and supplier usage—offers valuable insights that can optimise future travel strategies.
By analysing patterns in travel, spending habits, and areas for improvement, businesses can continuously refine their travel programs, maximising value and reducing waste.
In short, an effective corporate travel management strategy doesn’t just save money—it boosts productivity, supports employee well-being, ensures compliance, and provides actionable data for continuous improvement.
Best practices to maximise the value of your TMC partnership
Managing a corporate travel program can be complex, especially with the rapid changes in the travel industry. To get the most out of your Travel Management Company (TMC) and optimise your travel operations, consider these best practices:
1. Set clear objectives and goals
Understanding your business’s goals is key to shaping a successful travel program. According to CTM’s 2023 Global Customer Survey, priorities for the upcoming year include cost reduction, customer service, and policy compliance. Discuss these priorities with your TMC partner to ensure alignment between your travel policy and your broader business objectives.
Crafting a program that balances cost control with an enhanced travel experience, wellness, and policy adherence will increase engagement, compliance, and overall program success.
2. Invest in training and education
A well-informed team is a productive team. Ensure all stakeholders are well-versed in travel policies, objectives, and how they align with the company’s goals. Partner with a TMC that offers a variety of educational resources—whether through online courses, webinars, product training videos, or in-person sessions—to cater to different learning styles and communication preferences.
This approach ensures that everyone, from travellers to travel bookers, remains knowledgeable and engaged.
3. Monitor and analyse travel data
Your travel data holds powerful insights that can shape your travel strategy. Rather than being overwhelmed by complex information, leverage tools that present your data in clear, digestible formats.
Customizable dashboards and reporting features from your TMC can help you track patterns, uncover actionable insights, and make strategic, data-driven decisions to optimise your travel program.
4. Embrace automation and technology
In today’s digital-first world, technology plays a pivotal role in streamlining operations. To fully harness the potential of your TMC, stay updated on the tools and services they offer, especially those that promote efficiency and cost savings.
For example, self-service booking tools (OBTs) and mobile apps simplify the booking process, reduce administrative burdens, and offer greater flexibility and control for both travellers and travel managers. Embracing automation and technology not only drives efficiency but also empowers your team and improves traveller satisfaction.
5. Align with your company culture
A successful TMC partnership isn’t just about logistics—it’s also about culture. Ensure that your travel program and the values of your TMC align with your company’s culture and goals. If sustainability is a key value for your business, your travel program should reflect that by prioritising eco-friendly travel options and policies that promote wellness and reduce environmental impact.
A shared culture fosters trust, strengthens communication, and contributes to a more productive and successful partnership.
By following these best practices, you can unlock the full potential of your TMC, ensuring greater efficiency, cost savings, and an enhanced travel experience for your employees.
How travel management companies drive cost savings
Travel Management Companies (TMCs) offer more than just logistical support—they’re essential partners in maximising your company’s travel budget. Here’s how they help businesses save money while optimising travel operations:
1. Supplier negotiation
TMCs analyse your company’s travel data to uncover cost-saving opportunities, particularly when it comes to supplier negotiations. Since travel contracts often hinge on volume, your TMC uses data to assess which discount programs are most beneficial for your company.
If you’re already working with suppliers, your TMC will benchmark current agreements to identify potential improvements.
In cases where your travel volume doesn’t meet the threshold for supplier discounts, a TMC can provide access to exclusive corporate travel discount programs with rates your company wouldn’t otherwise have access to.
2. Automated unused ticket tracking
Unused tickets represent a significant, yet often overlooked, cost in business travel. Frequent changes to travel plan or connections to large projects can cause tickets to go unused, leading to wasted money.
Tracking unused tickets manually can be time-consuming and prone to errors, but TMCs offer automated tracking tools that catch these opportunities, ensuring that no money is left on the table.
This saves your company from the risk of losing out on refunds or credits and ensures that travel budgets remain optimised.
3. Travel policy support
A well-defined travel policy is a powerful cost-saving tool—provided it’s up-to-date and effectively enforced.
A TMC can help your business develop, refine, and implement your corporate travel policy, ensuring it aligns with both cost control and business goals.
By integrating your policy into the TMC’s service offerings, such as online booking tools or trip approval systems, you ensure travellers adhere to spending limits, preferred suppliers, and booking channels. This reduces unnecessary expenses and keeps travel within budget.
4. Instant access to the best pricing
When employees book outside of the approved channels, like an online booking tool or travel advisor, it can lead to two major problems: missing out on negotiated rates and failing to capture valuable data for future negotiations.
TMCs eliminate these risks by providing your team with instant access to the best available prices and most efficient itineraries. This streamlines the booking process, freeing up time and improving productivity while ensuring that travel expenses stay within budget.
By capturing and analysing this data, TMCs support future supplier negotiations, helping secure better deals down the line.
Holiday Tours: Your partner in optimising corporate travel
Holiday Tours offers a comprehensive corporate travel management solution that combines efficiency, cost savings, and security. With expertise in negotiating competitive rates and streamlining the booking process, we help businesses optimise their travel budgets and enhance their travel experience.
Our tailored services include seamless travel arrangements, a focus on minimising risks, and robust safety policies to ensure the well-being of your employees.
By leveraging our industry knowledge and cutting-edge online tools, we deliver cost efficiencies and provide constant support, making corporate travel smooth, secure, and cost-effective every step of the way.
DISCOVER COMPREHENSIVE CORPORATE TRAVEL SOLUTIONS
REACH OUT TO US AT +603 2303 9100 (PRESS 3) OR [email protected].
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