What is business travel management?

Travel management

Jun 2

Travel management

What is business travel management?

BoomPop Team · 6/2/2023

Travel is a vital aspect of business. It enables companies to interact with clients, see remote teammates face to face, and more.

That’s why business travel management is a pivotal function in any organization. For small and growing companies, however, the concept of travel management and everything it entails might be somewhat new.

At its simplest, travel management involves planning, booking, managing, and monitoring an organization's travel expenses and arrangements. It might be handled by one person in your organization, like a Chief of Staff or Executive Assistant, or you might have an entire team dedicated to it. No matter how you’re managing travel, understanding the basics is key.

Understanding business travel management

Why travel management is important

The purpose of business travel management is to enable an organization to carry out its objectives while mitigating any potential risks. This ensures that the organization's employees travel safely, and your company’s objectives are achieved efficiently.

Business travel management encompasses a wide range of activities, including travel policy development, travel planning, travel booking, travel tracking, and reporting and analysis. These elements are all crucial to an effective strategy.

Breaking down the key components of business travel management

Travel policy development involves establishing guidelines and procedures that govern an organization's travel-related activities. A well-developed travel policy can help an organization save money, ensure compliance with regulations, and enhance the safety and security of its employees. Learn more about travel policies and download our free travel policy template.

Travel planning involves determining the best mode of transportation, accommodation, and other travel-related arrangements. This includes identifying the most cost-effective options that meet your organization's needs while ensuring the comfort and safety of employees.

Travel booking involves making reservations for transportation, accommodation, and other travel-related services. This includes negotiating rates with vendors and ensuring that the organization receives the best value for its money.

Travel tracking involves monitoring the travel-related activities of employees to ensure compliance with the organization's travel policy. This includes tracking expenses, ensuring that employees are traveling safely and efficiently, and identifying any potential risks or issues that may arise.

Reporting and analysis refers to collecting and analyzing any data related to your business travel. This might include identifying cost savings, evaluating the effectiveness of your organization's travel policy, and identifying any potential risks or issues that may need to be addressed.

The role of travel managers

Travel managers can be an essential element of business travel management, especially at large companies. They are responsible for travel policy development, traveler profiles, preferred vendor selection, vendor negotiations, and compliance monitoring.

Travel managers also play a key role in ensuring the safety and security of an organization's employees. They work closely with vendors to ensure that employees are traveling safely and efficiently, and they provide support to employees in the event of an emergency or other travel-related issue.

As mentioned earlier, a “travel manager” might not have that title—especially at smaller organizations, but sometimes at large ones as well. It often falls under the umbrella of other functions, but the most important thing is to make sure everyone at your organization is aware of who’s responsible for travel management in case any issues arise.

Benefits of effective business travel management

You might be thinking that all of this sounds a little too complex for you to set up, especially if your employees don’t travel often. Even if travel isn’t common for your organization, though, we highly recommend putting some guidelines and best practices in place. Here’s why.

Cost savings and budget control

Effective business travel management helps organizations save money by negotiating favorable rates with vendors, monitoring travel expenses, and ensuring compliance with travel policies. This enables your company to control its budget better.

Improved traveler experience

Business travel management enhances travelers’ overall experience by ensuring that they have access to necessary tools such as online booking platforms and robust travel policies. This allows them to focus on their business objectives while reducing the likelihood of potential travel-related stress.

Enhanced duty of care and risk management

Business travel management ensures that travelers' well-being is a top priority. This includes providing necessary information to ensure that travelers are aware of potential risks and providing support in the event of any issues while traveling.

Streamlined processes and increased efficiency

Effective business travel management ensures travel arrangements are made carefully, quickly, and efficiently, saving time and resources. This results in streamlined processes and increased productivity.

Implementing a business travel management program

If you’re sold on the benefits of strategic travel management, here’s how to get started.

Assessing your organization's needs

The first step to implementing a business travel management program is to assess your organization's travel needs. This includes understanding the frequency of travel, destinations, and the nature of the business. This information will help create an effective travel policy document. This can also be a good phase in which to collect feedback from employees on any existing travel procedure.

Developing a travel policy

A travel policy document is a fundamental tool in effective business travel management. It outlines the regulations, procedures, and guidelines for employees traveling on behalf of the organization and includes expenditure limits, preferred vendors, and allowances that are permissible while traveling on company business.

Selecting a travel management or event planning company

A TMC is a helpful partner in business travel management as it can provide an online booking platform, travel management software, travel policy compliance tracking, and vendor management. Rather than a formal TMC, you can also work with companies that are more oriented around event and experience planning, depending on your company’s unique travel needs.

Integrating technology and tools

Technology can significantly enhance business travel management and make it easier to manage processes such as travel booking, itinerary management, and expense tracking. Integrating the travel management system with other systems your organization uses, such as payroll and accounting, can provide a clearer picture of travel expenses.

Key trends in business travel management

If you want your travel management practices to be fully up-to-date, here’s a few trends you should know.

Sustainability and eco-friendly practices

Sustainability is now a significant consideration in business travel management as travelers increasingly focus on the environmental impact of their travel. Companies are adopting sustainable practices, from eco-friendly travel and lodging selection, carbon offsets, waste reduction, and more.

Personalization and traveler-centric solutions

Travelers prefer personalization in their travel arrangements, and companies that offer a customized travel experience are more likely to retain their best employees and enhance their overall travel program. This can include offering unique travel experiences, preferred seating options, or trip add-ons such as personal guides.

The impact of remote work and virtual meetings

The COVID-19 pandemic has forced companies worldwide to adopt remote work and virtual meetings, leading to a shift in business travel trends. As companies embrace remote work policies, business travel is becoming more focused and strategic, leading to a fundamental shift in travel management practices.

Start managing your travel more effectively

Effective business travel management is critical for the success of any organization. It ensures that companies can manage their travel-related expenses effectively, keep their employees safe, and achieve their goals.

By following best practices and staying ahead of the latest trends, your organization can create travel programs and policies that help everyone succeed.