One of the most crucial aspects of running a business, regardless of size or industry, is corporate travel. It expands your reach, builds relationships with clients, attends conferences, and explores new markets.
However, managing corporate travel can be challenging, especially for small and medium-sized enterprises. With the right corporate travel management strategies, businesses can save money, increase efficiency, and enhance the traveler’s experience.
What Is Corporate Travel Management?
This refers to the process of managing a company’s travel arrangements, including flight bookings, hotel reservations, ground transportation, and other travel-related expenses. It involves developing policies and procedures governing how employees travel for business while ensuring the company’s travel expenses are within budget.
Why Is It Important?
Cost Control
Travel expenses account for a significant portion of a company’s budget. Effective travel management helps to control these costs by setting limits on travel expenses, negotiating favorable rates with airlines and hotels, and ensuring compliance with travel policies.
Increased Productivity
Business travel can be stressful and time-consuming. With travel arrangements taken care of by a dedicated team, employees can focus on their core responsibilities, leading to increased productivity and better results.
Duty of Care
Employers have a legal obligation to ensure their employees’ safety and well-being, including when traveling for business. Corporate travel management ensures that employees are adequately prepared for their trip, have adequate insurance coverage, and know potential risks.
Key Components of Corporate Travel Management
- Travel Policy: It is a set of guidelines that govern how employees travel for business purposes. The travel policy should include information on booking procedures, allowable expenses, travel booking tools, and expense reimbursement procedures.
- Travel Booking: Corporate travel management involves booking flights, hotels, and ground transportation for employees traveling on business. It is crucial to use travel booking tools that provide access to competitive rates and allow for efficient booking and tracking of travel expenses.
- Expense Management: Managing travel expenses is integral to corporate travel management. It involves tracking and reconciling travel expenses, ensuring compliance with travel policies, and processing expense reimbursements.
- Risk Management: Corporate travel management involves identifying and mitigating travel-related risks. It includes providing employees with adequate insurance coverage, providing travel safety training, and maintaining up-to-date information on travel advisories and security alerts.
Best Practices for Corporate Travel Management
- Develop a Comprehensive Travel Policy: A well-developed travel policy guides employees and ensures consistency in travel-related expenses. It should be communicated to all employees and reviewed regularly to remain current.
- Use a Travel Management Company: Travel management companies can assist with booking travel, managing expenses, and providing risk management services. They can access competitive rates and negotiate favorable terms with airlines, hotels, and other travel vendors.
- Implement an Expense Management System: An expense management system streamlines the process of tracking and reconciling travel expenses. It should provide real-time visibility into travel expenses, allow for efficient expense reporting, and ensure compliance with travel policies.
- Provide Travel Safety Training: Companies should provide employees with travel safety training, including information on responding to emergencies, travel advisories, and security alerts.
Key Takeaway
Corporate travel management is a critical aspect of running a successful business. It involves managing travel arrangements, controlling costs, ensuring compliance with travel policies, and mitigating travel-related risks. With proper corporate travel management implementation, businesses of any scale can save money, increase efficiency, and enhance the traveler’s experience.
Globeo is dedicated to providing corporate lodging solutions that prioritize safety and comfort for business travelers. Our platform offers a wide range of accommodations that meet the needs and budget of any traveler while also providing 24/7 customer support and security features to ensure a safe and stress-free experience.
Call (866) 645-8400 or email us at [email protected] to request a free demo!
