Corporate travel management (CTM) is the structure that companies have in place to organise and facilitate business trips, as well as travel and entertainment (T&E) expenditures. This can include anything from approving and booking travel and accommodation to managing business spending and record keeping.
Some businesses will handle corporate travel management internally with their own travel managers. However, others will often outsource corporate travel management to external transport experts who will manage the logistics on their behalf.
How does corporate travel management work?
Corporate travel management can seem pretty complex at times. Businesses need to ensure not only that systems are set up correctly to ensure that employees reach their destinations safely, but also that there is someone monitoring and managing each journey.
Expenses, mobility, comfort and safety all need to be taken into consideration for each traveller — not to mention any special travel requirements that any individuals may have. To keep on top of and effectively manage each element of corporate travel, companies will develop a CTM strategy that will often fall into one of two categories: in-house or external.
In-house vs external travel management
In-House Travel Management Agents
Businesses that choose to handle their corporate travel management internally will usually hire a dedicated corporate travel manager to oversee the logistics of each business trip.
An in-house corporate travel manager will be solely responsible for booking travel and accommodation, making any last-minute amendments to itineraries and finding the best deals to maximise travel cost savings. Depending on the company, a corporate travel manager may also be in charge of overseeing any aspects of automated travel management within the business, such as self-book travel or automated software.
One of the benefits of an in-house travel manager is the peace of mind of knowing that you’re working with a trusted employee who is sure to adhere to your organisation’s best practices and values when booking corporate travel.
External Corporate Travel Management Agents
While internal travel managers have their positives, they may not have the resources to keep up with large organisations that have a constant rotation of business trips that all need managing at one time.
This is where external travel management agents come in. Often working as a dedicated team rather than as individuals, external agencies are experts in the travel industry and will take over all elements of business travel on your behalf. They may even be able to use their connections and leverage as experts to help you secure better deals and rates on your journeys.
Another benefit to external travel managers is that they will be available 24/7 to make last-minute travel amendments, or to assist with any emergencies — a crucial benefit when travelling within different time zones. This makes situations like cancelled flights or lost luggage much easier to deal with.
The biggest challenges of in-house corporate travel
1. Managing large numbers of requests
While larger organisations will often have a dedicated in-house travel manager, smaller businesses may pass on this role to a member of their finance or administration teams.
However, it’s not the additional work for these employees that is the real challenge, it’s the haphazard nature of travel requests. When corporate travel is frequent and team members don’t know the proper booking procedures, these in-house travel managers will feel the sting of a lack of automation within the business — making the travel booking process needlessly time-consuming.
2. Tracking approvals
Handling travel requests is one thing, getting approval is another. Whether it’s a manager or the CEO, travel requests need to be signed off before any steps can be taken to book travel.
While external travel management companies can be given a detailed list of parameters to adhere to, streamlining the approval process, internal staff will need sign-off for everything from the cost of travel to the number of team members who are travelling.
3. Keeping spending in check
While travel can be essential, no business wants to spend more than they need to. Travel managers are therefore left with the challenge of balancing the experience and end result of each trip with the cost it takes to complete.
If not properly managed, travel budgets can become swollen and can lead to turning down reasonable requests due to a lack of available funds. A common pitfall of many travel managers is relying solely on “business hotels” and booking with travel agents. These options come at a premium and are usually chosen for convenience or as a way to feel more professional.
By taking the time to source your own accommodation through tools like comparison sites — just like you would in your personal life — you can save on travel spending while still finding accommodation that suits your business travel needs. Alternatively, opting for an external travel management company will give you access to rates not available to the general public.
4. Being flexible
While travel serves a purpose for the business, your employees are doing you a favour by taking part. As such, it’s important to help make each trip feel like an enjoyable experience, allowing them to get something out of the journey as well as the company.
Being flexible plays a big role in helping you achieve this. By providing your team with the opportunity to choose certain aspects of their journey — such as choosing between public transport or renting a minibus — you can develop a travel itinerary that aligns with the wants and needs of both the business and your employees.
5. Reducing errors
Nobody likes making mistakes, but unfortunately, they happen — and when it comes to business travel, they can be costly.
Every time a corporate travel manager needs to fix a mistake, it’s time that they’re not getting back and could have been put to better use elsewhere. But it’s not just an issue of distractions, mistakes like missing receipts or inaccurate expense claims can add up to costing the business.
Ease the burden on your business
Corporate travel management is a complex field of specialisation that requires significant skills in multitasking, organisation and bookkeeping. While it’s possible for some companies to delegate corporate travel management to employees, external teams of experts allow your staff to focus on what they do best.
Learn more about CMAC’s corporate travel management services and employee transport management solutions to see how we can ensure your business trips always go off without a hitch.