Imagine this: you have a business trip coming up to New York City, the most expensive U.S. city for business travelers, with a daily average cost of $541.
But instead of planning the trip, you’re drowning in a sea of flight options, hotel comparisons and car rental quotes.
Enter corporate travel management, your ticket to an easy–boarding pass?
What is Corporate Travel Management?
Corporate travel management (CTM) is your one-stop shop for all things business travel. It’s a program that helps companies streamline the entire travel process, from booking flights and hotels to managing expenses and ensuring employee safety.
Who Is A Corporate Travel Manager?
A corporate travel manager is the mastermind behind your smooth travel experience. They’re experts who design and manage your company’s travel program. They negotiate deals with airlines and hotels (remember, business travelers are highly valuable to airlines!), handle bookings, and provide support to traveling employees.
Do I Need A Corporate Travel Management Program?
Absolutely! Here’s why:
Save Time and Money
CTM programs negotiate corporate rates and track expenses, saving you big bucks. Did you know that while business travelers only make up 12% of airline passengers, they account for 75% of an airline's revenue on some flights?
Corporate travel management programs help you tap into those corporate discounts.
Simplify Travel for Employees
No more endless searches! Employees can book flights, hotels, and car rentals through a user-friendly online platform or app.
Imagine the time saved compared to the pre-internet days, when business travelers took 405 million long-distance trips a year in the U.S., mostly by car for destinations under 250 miles!
Peace of Mind for Employees
Corporate travel management programs prioritise employee safety with features like travel alerts and emergency assistance.
How Much Does Corporate Travel Management Cost?
Corporate travel management programs typically charge a small fee based on transaction volume or a retainer model. But guess what? The savings they generate often outweigh the cost.
Let’s break it down with an example:
Scenario: Imagine your company takes 100 business trips per year, costing an average of $2,000 per trip (including flights, hotels, and car rentals). This translates to a total annual travel spend of $200,000 ($2,000/trip * 100 trips).
CTM fee: A CTM program might charge a fee of 2% per transaction. So, for your 100 trips, the CTM fee would be $4,000 ($2,000/trip * 100 trips * 2%).
Savings potential: Here's where CTM programs shine. Through negotiating corporate rates and optimizing travel spend, a CTM program could potentially save your company 10% on travel costs. In this example, that translates to $20,000 in annual savings ($200,000 * 10%).
The math: Even after factoring in the CTM fee, you come out ahead:
- Total Travel Spend: $200,000
- CTM Fee: -$4,000
- Savings from CTM: $20,000
- Net Savings: $16,000 ($20,000 - $4,000)
Can Employees Still Book Their Own Travel With Corporate Travel Management?
Yes, but with a safety net! Most programs allow employees to book within the company's travel policy through the CTM platform. This ensures they get the best rates while adhering to company guidelines.
Some Things to Know About Corporate Travel Management Programs
Cost Savings & Budgeting
CTM programs negotiate corporate rates with travel suppliers and track expenses to optimize your budget. Think of it as having a travel connoisseur in your corner!
Duty of Care & Risk Management
Business travel can come with risks, especially for international travel which saw a massive decline during COVID (78.8% drop in U.S. business tourist arrivals from overseas in 2020).
An excellent corporate travel management program provides features like real-time traveler tracking, emergency response services, and travel advice to keep your employees safe. Imagine your employees getting stranded due to some outbreak in the future–a CTM program can help locate them and arrange assistance.
Compliance & Reporting
CTM programs help ensure employees follow your travel policy and provide clear reports on travel spend, allowing you to identify cost-saving opportunities.
Also Read:
Benefits of a Good Corporate Travel Management Program
For Travelers
- Simplified booking: No more travel booking headaches! Book everything in one place with user-friendly tools.
- Savings & deals: Get access to exclusive corporate rates and travel discounts. Remember, business travelers are more likely to buy last-minute tickets, and CTM programs can help you snag those deals.
- 24/7 support: Need help changing a flight or have a question during your trip? Your CTM program is just a call or click away.
- Enhanced safety: Travel with peace of mind knowing your company prioritizes your safety with features like travel alerts and emergency assistance.
For Businesses
- Cost savings & control: CTM programs help you negotiate better rates and track travel expenses, leading to significant cost savings. Imagine the savings if you can avoid expensive last-minute flights that business travelers are more likely to book (remember, 74% of US business trips are under 250 miles and can often be made by car).
- Data & insights: Get clear reports to understand your travel spend and identify areas for cost optimization. Did you know that airlines receive nearly 60% of their revenue from passengers? With CTM data, you can see how much of that is business travel and optimize your spending accordingly.
- Duty of care: Ensure your employees' safety with features like travel alerts and emergency assistance.
- Happy employees: A smooth travel experience keeps employees happy and productive. Imagine your employees returning from a business trip to San Francisco (the most expensive US city for food!) feeling refreshed and ready to work, thanks to a seamless travel experience facilitated by CTM.
Steps for Efficient Corporate Travel Management
Now that you're armed with this knowledge, you can implement a CTM program and transform your business travel experience. Here are some next steps:
- Research: Identify your company's travel needs and budget. Consider factors like the number of business trips per year, typical destinations, and employee travel habits (car vs. air travel).
- Choose a CTM provider: Look for a reputable Travel Management Company (TMC) with expertise in your industry. A good TMC will understand your company's unique needs and be able to offer customized solutions.
- Develop a travel policy: Outline your expectations and guidelines for business travel. This should include things like preferred airlines and hotels, expense limits, and approval processes.
- Train your employees: Educate your team on the new CTM program and how to use it effectively. This will help ensure a smooth transition and maximize the benefits of the program.
- Implement Technology: Choose user-friendly online booking tools and most importantly, a travel expense management software. Make sure the technology integrates seamlessly with your existing systems.
Also Read:
Travel and Expense Management Software: The Backbone of Your CTM Program
A travel expense management software is the unsung hero of your CTM program. It goes beyond simply tracking receipts–it's a powerful tool that helps you develop, implement, and enforce your travel policy. Here's how:
- Streamlined expense reporting: Say goodbye to piles of paper receipts and manual data entry. Employees can use a travel expense management tool to capture and submit receipts via text message. AI instantly extracts relevant information to create an expense report automatically. This saves time for everyone involved and reduces the risk of errors.
- Policy automation: Imagine pre-populating expense limits and category restrictions based on your travel policy. A travel expense management software allows you to set up rules that automatically flag out-of-policy expenses, ensuring compliance from the start.
- Faster reimbursements: Employees get reimbursed quicker with streamlined expense reporting. This improves employee satisfaction and reduces administrative burdens for finance teams.
- Data & analytics: With robust reporting features, you can gain valuable insights into your travel spending. See which categories are driving costs the most, identify areas for optimization, and make data-driven decisions to improve your travel program.
In Conclusion
Corporate Travel Management programs are fantastic, but they're like a luxury car without an engine. They save you money, streamline processes, and prioritize employee safety, but for peak performance, you need a travel and expense management software.
That’s where Fyle comes in. Fyle automates receipt collection, expense report submission, expense reimbursements, enforces travel policies and provides valuable spending insights.
The result? Streamlined processes, optimized costs, and happy employees.
Ready to take your CTM program to the next level? See Fyle in action! Sign up for a demo today and experience the future of business travel.
