Understanding the key differences between unmanaged travel vs. managed travel can help organizations objectively and accurately determine opportunities for process improvements that can improve their bottom line. The table below compares an unmanaged travel program to a managed one, broken down in to nine phases: starting with (1) Policy and Procedure Development and ending with (9) Reviewing and Refining the overall program.
At MacNair, we use the term Travel Anarchy™ or unmanaged travel to describe organizations that have a chaotic Travel and Expense Management (TEM) process. While many organizations depend on travel to drive growth, those that are completely unaware of managed travel processes end up creating unnecessary costs for themselves in both time and money. Granted, it can be challenging for organizations to see the benefits and measurable impacts of a travel program without having a structured Managed Travel process in place. When this disconnect occurs, Travel Anarchy™ ensues.
Gaining control over Travel and Expense Management (TEM) is on the top of the minds of many CFOs. According to recent CFO Research, more than two thirds (69%) of senior finance executives agree that their company would benefit from better control over T&E.
If you’re like many CFOs, improving T&E control and addressing reporting variances are key goals for your travel program. You want actionable data when it comes to travel expense management. You also want visibility into how your travel program fits within the larger picture of your organization.
After all, corporate travel management affects more than your business travelers; it also touches on HR through duty of care and policy compliance, procurement when it comes to control and travel costs, and even the legal department as it relates to liabilities. Your challenges lie in managing the complexities around travel. According to CFO.com, “Many finance executives say that companies lack the centralized oversight or controls that would help them better manage T&E spending.”
Businesses are always looking for ways to save money, but when travel is an important part of your company’s success, expenses can skyrocket. The travel and entertainment (T&E) line item not only takes a toll on your bottom line, but for employees to book their travel, reconcile credit card reports, and other travel-related follow-up takes away valuable time from their day-to-day job responsibilities.
Enter a travel management company – a great solution, right? Travel management companies (TMCs) are able to take over the responsibility of booking and managing your overal travel management process, but are they really saving you money? Are they making an impact on the bottom line? The answer is, "Yes."'
Topics: Corporate Travel, Travel Manager, Travel Management, business travel, business process outsourcing, Managed Travel, Travel Management Company, Supplier Negotiations, Travel and Expense Management
Travel Leadership Blog
Travel and expense management is a key leverage point to enhance productivity & control costs. Join us here as we share best practices, stories, insights and tools to help you manage your travel more effectively.