T
ravel management is an equal-
opportunity business. The same
tools that are available to the
largest, most sophisticated companies are
also available to the smallest. That’s good
news for small and medium-sized businesses
that need help managing their travel
programs. And contrary to common belief,
travel management is not a one-size-fits-
all solution. The right travel management
company works in partnership with its clients
to develop tools and services that meet their
individual needs.
How do you know when your company
is ready to talk to a travel management
company? The answer is usually pretty
straightforward, and it’s not a matter of size
or spend. You should start a conversation
when you feel there is a lack of visibility into
your travel expenses or when some level
of management is required to keep your
travelers safe and happy on the road.
Define the Support Amount You Need
Generally speaking, travel management
companies describe the level of support and
service a client requires as lightly, moderately
or heavily managed. Are the constant last-
minute itinerary changes of a few travelers
eating up your time? A lightly managed
solution might be subscribing to an online
booking system that allows your travelers to
make itinerary changes via text. An example
of a more heavily managed program would
be the integration of travel policy directives
into an online booking system.
How Do You Know What Is
Right for Your Company?
That depends on your goals and priorities.
Travel Leaders recommends companies
start by developing an effective travel
policy. This go-to document for all things
travel is the bedrock of any travel program
and usually guides all subsequent decisions.
You should have a travel policy in place
whether or not you use the services of a
travel management partner, as a well-
considered travel policy has the potential
for significant cost savings and allows you
to rest easy knowing your travelers are safe
while on the road.
Laying the Groundwork:
Processes and People Matter
For many clients, the next step is getting
the right tools and processes in place.
Depending on your needs, these can
include online booking tools; negotiating
discounts with air, hotel and car vendors;
rolling out automatic expense reporting;
and enrolling in airline soft dollar programs
that offer frequent fliers benefits such
as seat upgrades, lounge passes and
discounted tickets. These initial steps are
part of a lightly managed program and
have the potential for immediate savings
and increased control. They will also bring
visibility to your travel spending, increase
budget accuracy and lay the groundwork
for better data collection and analysis.
Adding More Insight and Control
A moderately managed program builds
on these services and might include risk
management, in-depth data analysis and
more robust supplier negotiations. From
there, some clients move into a highly
managed program, where they have a
great deal of control over their employees’
booking choices, increased strategic account
management and a more sophisticated risk-
management program. These programs
are typically complex and involve a marked
increase in oversight.
QUESTIONS TO
CONSIDER
1. Would you like better
visibility into your corporate
travel expenses?
2. Are you able to ensure the
safety of your travelers? In
case of a crisis, could you
verify their whereabouts
or ensure the security of
your corporate assets? Do
they know who to contact
in case of an emergency?
3. Are you confident your
travelers are making smart
choices with their bookings?
4. Do you have a travel policy
in place, and if so, do
your travelers comply?
5. Do you collect the
necessary data to negotiate
discounts with suppliers?
6. Would you like to integrate
booking, authorizations
and payments into one
streamlined process?
Continuous Improvement
Travel management is generally thought
of as a process that is constantly evolving
to seek better results. As your company
grows and matures, so should your travel
management program. It’s important to
remember that the terms lightly, moderately
and heavily managed are generalized
guidelines, not rigidly defined categories.
What’s most important is to determine
your company’s priorities and find a travel
management company that will work with
you to develop a program customized to
your needs.
The good news for small and medium-sized
businesses is that you can reap many of the
same efficiencies and cost-savings benefits
as a large company, even through a lightly
managed program.
Elevating the Art of Business Travel
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