Business travel management

Business travel management is the function of managing a firm’s approach to the travel needs of its employees, 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, 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 travel suppliers (e.g. airlines, hotels, car rental)
  • Ensuring travelers’ security, also known as Duty of Care
  • Managing corporate credit card programs
  • Procuring and managing the services of external solution providers such ascorporate travel software vendors, travel expense software and travel management companies (TMCs).

A contracted TMC will usually offer both online services giving companies the ability to book business travel through an online booking tool (OBT) and will also offer offline services leveraging 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 often includes cost-saving targets.

Learn about business travel booking solutions from KDS.