7 Fundamental Ways Corporate Travel Management Saves Money

CorporateTravelManagementmanonphone.jpg

More and more companies are opening branches in different cities, and even different countries. Due to globalization, customer bases are now sprawled across the world and businesses need to cater to these customers. Then there are workshops, conferences, and seminars. And do not forget about business meetings with suppliers and supply chain partners. The reasons that companies have employees, clients, and potential employees travel are numerous, but the reason that all corporations should be relying on CTM’s is singular… corporate travel management saves money. Here’s how:

1. INCREASED EFFICIENCY:

It is not just the travel planning that takes time and effort, it is also all of the logistics around the travel. The travel data needs to be managed. The travel expenses need to be reconciled. Travel changes, due to emergencies or other unforeseen circumstances, are not uncommon and adjusting for them can be challenging. This is exactly where the travel management company comes in and saves companies time and money. They have access to the latest software that provides businesses with the tools they need. They can more effectively and efficiently manage travel expenses and data while providing customer service to handle any unforeseen and necessary changes.

2. NEGOTIATED DISCOUNTS:

Travel management companies have relationships with car rental companies, hotels, and airlines. They know the person on the other end of the email or phone. And that person knows that that travel management company brings in significant business every single year. This mutual understanding allows CTM’s to get discounts on each and every flight, hotel room stay, or car rental. So much so, in fact, that a business can save at least 10% on their travel and entertainment budget on average.

3. ENHANCED TRAVEL MANAGEMENT:

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.

4. EMPLOYEE PRODUCTIVITY:

Companies hire employees because they need them to do a job. They need them to make a sale, defend an innocent client, or complete some other valuable task. They do not hire them to spend hours reserving flights, hotel rooms, and cars. Comparing prices, making bookings, and ironing out an itinerary takes an inordinate amount of time. It can be frustrating and challenging when tasked with abiding by the corporate travel policy. This is another area where a corporate travel manager provides value. They take over this responsibility so that employees can do the job they were actually hired to do.

5. EMPLOYEE RETENTION:

Travel causes stress. Every part of it from planning the trip to checking into the hotel room. A travel management company helps reduce all the stress associated with travel. They implement a simple, automated platform so that the company can begin their travel preparations with ease. They then offer a dedicated professional to personally assist with the itinerary from beginning to end. This means that you will not be talking to a machine, but a real person whose entire goal is to be as helpful as possible throughout your corporate travel experience.

Additionally, a corporate travel manager understands that it is every business’ goal to reduce travel spend. Their experience in the industry allows them to help these businesses to set and achieve realistic goals to reduce a corporate travel budget. Finally, if a company has an employee, client, or potential employee traveling, they can rest easy knowing that even if it is the middle of the night, there is a professional who will be available to help if some aspect of the trip does go wrong. It is this type of personal touch that keeps employees happy and loyal to the companies they are working for. A reduction in employee attrition will also create significant recruitment savings over the long-term.

6. THOROUGH 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.

7. IMPROVED FLEXIBILITY:

Travel plans constantly evolve. Meetings get moved. Emergencies come up. When an employee is responsible for their travel arrangements, they have to call and deal with a random airline employee or the front desk clerk at a car rental agency. When they try to negotiate a change the most common response is ‘no’ or ‘that is not possible’ or ‘that will cost you extra’. Not only does this take up employee time and cause frustration, but it can also end up costing the company a lot of money.

Corporate travel management saves money and solves problems. All it takes is a quick request from an employee and the corporate travel manager will figure it out at a moments notice. They find quick solutions that fit employees’ needs without crushing the company’s bottom line.

There is no way around the fact that corporate travel is expensive. However, there is a way to reduce the financial burden and create a smoother travel experience for every employee in the company and that answer is connecting with a reliable Corporate Travel Manager.