Business Travel Management is the function of managing a firm’s approach to the travel needs of its personnel, and the associated costs and corporate responsibilities.
For many companies, travel and its associated expenses are the business’ second-highest controllable cost after salaries and benefits. The business travel management function is therefore of significant strategic importance to large organizations. It usually falls within the Purchasing, HR, Finance or Administrative or Support Services departments, and is overseen by a Travel Manager who is responsible for:
● crafting and implementing the business’ travel policy
● negotiating rates and volumes with vendors
● ensuring travelers’ security
● managing corporate credit card programs
● procuring and managing the services of external solution providers such as Corporate Travel Software vendors, Travel Expense Software and Travel Management Companies (TMCs).
A contracted TMC will leverage their specialist resources for trip booking and other aspects of business travel management in order to help the travel manager execute their policy and achieve their travel program goals, which will often include cost saving targets.
An increasingly important aspect of Business Travel Management is the use of reporting and data analysis, as enabled by Corporate Travel Software, to assess and improve the effectiveness of the travel program, often through the implementation of key performance indicators around issues such as policy compliance, missed savings and average trip spend.