With how busy employees can get, the last thing they want to worry about is how to travel in the cheapest way possible. In most cases, in their minds, they’ll simply expense it. This mindset can result in last minute bookings, unused airline tickets and choosing more expensive hotels. All of which can add up to tens of thousands of dollars in unnecessary T&E expenses over the course of the year.
This doesn’t even take into account the lost productivity that occurs when your employees book their own travel, which some reports say can be two or more hours spent comparing fares and schedules.
It’s no wonder that T&E is the second largest budget line item for most companies and that organizations want to take a closer look at the expenditures. There’s usually a lot of waste that can be cut once you fully assess the situation.
For example, in today’s connected world, on the surface, it might seem efficient to let your employees book their own trips and then submit the receipts. However, it may be costing you far more than you think. Last minute bookings, flight changes, ancillary costs that fluctuate depending on airline, lost productivity, and lack of leverage with preferred suppliers, all can add up to hundreds of extra dollars spent per employee, per trip.
A TMC can help you improve your bottom line and cut costs. Here’s how.
A TMC can save a company an average of 10-20% over the cost of travel. With one client, we reduced their average flight cost from $591 to $459. This helped reduce their 1.5 million dollar travel budget by $250,000.
With another client, we created automated and manual ways to let employees know about the availability of unused and nonrefundable plane tickets so they could use them before they bought another ticket. With yet another client, we reduced their ticket expenses by 5%.
A TMC can leverage large numbers for better negotiations with preferred suppliers and frees up your employees to do their jobs rather than book travel.
Plus, with all the new technologies coming on board, it’s never been easier to improve efficiency in your travel program and save time and money.
No matter how carefully you plan, it’s impossible to account for everything. From run of the mill travel disruptions to inclement weather to unforeseen political concerns- it’s good to have support and we’re prepared to handle it all. TMC’s have people and technology available 24 hours a day, 365 days a year.
When it comes to meeting business objectives, TMC’s use data management tools to provide regular reports so their clients can track their progress.
Higher Travel Compliance
TMC’s often use a combination of online travel booking tools and traditional support representatives which can make it simple for your employees to book their travel either online or making a phone call. Certain tools like Concur can be customized with your policies, preferred suppliers and even spending thresholds, built right in making it simple for your employees to comply with the company travel policy.
Not only does this make it easier to control costs, but it also makes travel safer for your employees because they’re operating within the policy confines.
Improved Vendor Usage/Contract Negotiations
TMC’s take advantage of the predictive data available in the marketplace to find unbiased data for the best rates that meet your needs. A TMC may review multiple systems in order to find the best rate.
Additionally, TMC’s have preexisting relationships with suppliers that can provide clients with otherwise inaccessible deals and connections. TMC’s are in a position to maximize their negotiated rates and employees can still enjoy the convenience of booking online.
As you can see, there are many ways in which a TMC benefits your bottom line. From saving you money on airlines, hotels and car rental to keeping up with emerging technology to streamline your travel program, there are many ways a TMC can help your company save. Which do you feel are the biggest gaps in your travel program?