It is time for you to understand some of the important functions of a travel management company (TMC).
The strong comeback of corporate travel creates opportunities for businesses across sectors to generate incremental revenue by increasing business travel spending. But a company or startup can increase the number of business trips only by controlling work travel costs.
Also, it needs resources and expertise to help employees achieve preset business travel goals. Business travel management companies help companies to increase the ROI of business travel by overcoming constraints related to expertise and resources.
In addition to managing their business travel programs, travel management companies meet clients’ business travel needs fully. If your organization is yet to outsource travel management, it is time for you to understand some of the important functions of a travel management company (TMC).
Nine important functions of a business travel management company
1. Organizational travel policy enforcement
Companies these days implement well-defined travel policies to prevent employees from escalating business travel costs. But they have to put in extra time and effort to ensure that each work traveler complies with organizational travel policies.
TMCs recommend flights, accommodations, and car rentals to employees according to preset travel policies. Hence, it becomes easier for clients to control business travel costs without tracking policy violations.
2. Negotiated rates
The average business trip cost has been increasing consistently due to global inflation. Companies can increase the number of business trips only by controlling business travel costs. TMCs help clients reduce business travel costs significantly by providing access to negotiated rates. Employees can book essential business travel solutions at negotiated rates using the digital booking tool provided by the TMC.
3. Business travel booking options
While traveling for work, employees want to book their choice of flights, accommodations, and car rentals. Companies can meet this expectation of work travelers only by enabling them to access a large travel inventory. Leading TMCs these days support self-business travel booking.
TMCs provide employees with access to an extensive and diverse travel inventory. Hence, employees can book the desired travel solutions. Also, employees can book travel solutions on their own using the business travel booking tool provided by the TMC.
4. Concierge services
English is currently the language of international business and global communication. But English is not the native language in many emerging business travel destinations. Employees need concierge services to avoid spending additional time in airport lounges, car parking, and restaurants. Leading TMCs make it easier for work travelers to focus only on business travel goals by providing concierge services.
5. Corporate travel consultants
Employees often travel to unfamiliar destinations for work purposes. They need both information and assistance to plan business trips. Also, employees need assistance managing flight delays, cancellations, disappointing accommodations, and similar business travel risks.
Leading TMCs make it easier for them to plan business trips and manage travel risks by deploying dedicated corporate travel consultants. Employees can solve emerging issues by contacting the travel management consultant.
6. Travel expense consolidation
The surge in the number of business trips makes the finance or HR team process additional travel expense claims submitted by employees. The finance team has to speed up travel expense reimbursements to prevent work travelers do not experience stress.
At the same time, they have to focus on preventing policy violations and expense fraud. TMCs make it easier for the finance team to track and manage business travel expenses by submitting consolidated travel expense reports. The finance team can access the consolidated report to track travel expenses incurred by multiple employees.
7. Data-driven decision making
In addition to providing relevant information and assistance to employees, TMCs help clients make data-driven decisions. Corporate travel consultants generate and share elaborate reports generated based on real-time travel data.
Also, they help decision-makers analyze travel data for individual projects, departments, employees, or travel destinations. Hence, it becomes easier for managers to refine travel policies, adopt emerging trends, improve business travel experiences, and control business travel costs.
8. Duty of care support
While updating travel policies after the pandemic, companies focus extensively on the duty of care to ensure the safety and security of international business travelers. But most organizations lack the resources and network required to provide real-time assistance to employees during international business trips.
TMCs help businesses meet their duty of care obligations regardless of business travel destinations. In addition to tracking employees, they deliver real-time travel information before and during the trip. Also, employees can contact a dedicated travel management consultant to manage emerging travel risks by getting the required support without any delay.
9. Travel management automation
Automation is currently one of the hottest business travel trends. Companies these days save resources and curtail costs through the automation of corporate travel management. Leading TMCs help clients automate business travel management by launching specialized travel management software.
Employees can use travel management software to send travel requests, perform business travel booking, receive travel alerts, and generate automated expense reports. At the same time, the finance team can use the same software to approve business trips, speed up reimbursements, and track business travel expenses.
Some of these digital solutions transform business travel management using cutting-edge technologies like artificial intelligence and data analytics. The software provides actionable insights to decision-makers by analyzing a large amount of real-time employee travel data.
Conclusion
In addition to meeting your organization’s business travel needs, the business travel management company will help your employees meet preset business travel goals. But every travel management company may not provide the options, services, and tech solutions required to meet your company’s business travel needs fully.
For instance, you can partner with certain TMCs to avail of business travel solutions at lower rates. Likewise, you can partner with some TMCs to automate routine travel management activities using travel management software.
That is why; you should focus on partnering with a travel management company that helps you boost business travel experiences and meet the duty of care obligations. At the same time, you need to ensure that the company meets your organization’s current and emerging business travel needs without escalating costs.
