Simple payment management changes, such as introducing the use of virtual payment options, like Central Travel Solution (CTS) or Business Travel Account (BTA) commercial cards, can significantly improve the ROI on travel programs. A TMC with expertise in payment management systems can help your organization build travel policy guidelines to ensure credit card payments are consolidated in order to increase eligibility for various credit card company benefits, rewards and special offers.
Motivation for travelers to book direct with suppliers is on the rise, creating unique challenges for managed travel programs. Travel suppliers, especially hotels, are making a concerted effort to cut out middlemen by re-launching loyalty programs and adding incentives to entice business travelers to book directly with them – thus bypassing corporate travel policy.
With non-compliant bookings, the tangible benefits of corporate travel policies and programs are diminished. When travelers do not use preferred suppliers, or take advantage of negotiated rates and perks by using the company’s approved online booking tool (OBT), the company loses its ability to leverage volume for future negotiations towards discounted rates.
Not only are organizations hamstrung in negotiations, but supplier-direct booking also impacts the ability of travel managers to track down, locate and contact their travelers in the event of an emergency. As a result, travel managers must re-think policies and discover new ways to account for travelers who bypass approved booking methods.
Ancillary fees can have a significant impact on your travel budget. As airlines continue to charge for services that were once provided at no cost, the task of tracking various ancillary fees for air travel becomes a complex challenge for Chief Finance Officers (CFOs).
However, these costs can be controlled when CFOs thoroughly track and assess all data related to ancillary fees previously incurred by your travelers. This information will contribute to a travel policy that makes sense for your business, while providing clear guidelines and flexibility to your travelers.
Many Small to Medium Enterprises (SMEs) believe the most advantageous way to reduce corporate travel cost is to eliminate Travel Management Company (TMC) fees, but cutting TMC fees is a short- sighted approach when it comes to saving money on corporate travel expenses.
A forward-looking approach is to implement a strategy that takes advantage of the significant value TMCs provide organizations. A TMC can leverage exceptional high-volume discounts unavailable to the traveler, while establishing and enforcing policies and procedures to help facilitate preferred supplier agreements. A TMC should introduce automated pre-trip authorization processes and reduce the number of rogue travelers within an organization.
An experienced TMC can save SMEs up to twenty percent in additional savings on corporate travel spend each year while supporting travel policies that improve traveler productivity. This article discusses key areas SMEs should focus on in order to reduce corporate travel costs, far more than the minimal savings that would be realized by cutting out a TMCs’ booking fees.
What would it look like if you had better visibility into your corporate travel expenses? What if you had the right technology that integrated booking, authorizations, and payments; and then that technology streamlined your processes? What if your business travelers were happy to follow the corporate travel policy?
For many companies with unmanaged travel programs, that scenario is far from reality. Rather, your organization may experience rogue travelers and multiple inaccurate or incomplete expense reports that require you to piece together the larger financial picture.
If you’re like many organizations with automated expense reporting, you are well aware of the advantages of improved visibility into travel expenses. Automated expense solutions not only provide insight, but also save valuable time for your travelers and finance team. No more keeping up with paper receipts!
Now you may be ready to expand on your existing solution. After all, how do you leverage all that data to move the needle and increase your ROI even more? As you contemplate next steps, take these five symbiotic considerations as starting points.
Did you know your business travelers could be liable for double income tax while they’re working in another country? Did you know it’s possible to inadvertently expose the company to a corporate tax liability by engaging in certain types of business while traveling?
Chances are, neither your travel managers nor your business travelers are thinking of the potential tax implications for business travel. Yet, technically, if one of your employees spends a week in another country (or state) they owe income taxes to that entity under the Pay-As-You-Earn type taxes for the amount of time they’re there.
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.