When it comes to corporate travel, organisations need to be financially responsible. At the same time, they need to be efficient and ensure unique requirements are met. So the key question is should you DIY or outsource corporate travel?

It can be tempting to keep control of your corporate travel in-house. In some circumstances, it probably makes financial sense to DIY . For example if you’re only dealing with a few business trips a year. Companies who prefer to organise travel themselves will also often argue that cost and policy non-compliance are factors.

However, outsourcing to a travel management company (TMC) does have a number of benefits over doing it yourself.

1. More resources

A TMC has the expertise and the tools to streamline the booking process and consolidate the entire organisations’ travel. They will also troubleshoot any problems that may arise, from lost luggage and delayed flights to hotel issues and change of schedule. Some of these issues take a minimum of 30 minutes of just being on hold until you speak to someone.

2. It is cost-effective

Outsourcing means just one company organises all your travel. While you might think you can always get a good deal by using online booking engines, in the long run a TMC with the right tools is likely to save you more. Deals that look good on the day of search for example may not always be available when the travel has been authorised.

Outsourcing saves on administration costs, including time spent invoicing and on making or changing bookings. There is also only one service level agreement in place with the TMC, rather than several across individual platforms.

3. Everything is systemised

From flights, to hotels and even car hire, outsourcing means every booking is in the same system. This makes reporting and tracking travel spend easy.

It also means that if emergency situations do occur, traveller locations and contact details can be found immediately, allowing you to fulfill your duty of care.

4. It’s more than just booking travel

When you retain a TMC, you’re getting more than just a few flight and hotel bookings. A TMC can assist your travellers with local knowledge on the ground at destinations, help you create a travel policy, and suggest strategies to curb non-policy compliance. A TMC will also help you understand how much travel is being booked through the system, and how much is ‘going rogue’!

Travel involves many elements, which all need to work to make the journey as smooth as possible. Flights, hotels and car hire need to be seamless, suit the requirements and a cost-effective choice.  A quality TMC can help you achieve this, on every journey. Talk to us to discover how.

Whether you’re running a national or global business, corporate travel is an essential investment in the success of your organisation. Travel expenses are generally the second or third highest cost after wages. With outsourcing travel management to experts, your corporate travel costs don’t have to spiral out of control.

An increasing number of businesses are realising the benefits of outsourcing their travel to professional corporate travel management companies (TMCs).

Here are seven ways placing your corporate travel in the hands of a professional TMC can save your business.

1.   Save by streamlining your processes.

When you use a TMC, you have one central person or team managing all your travel requirements. This means processes can be more easily streamlined rather than having various people involved in booking travel.

2.   Save by managing KPIs and meeting performance targets.

Setting and measuring KPIs is easier when you’re only dealing with one supplier. Performance is easier to keep track of, so you can see what’s working and what isn’t at a glance. TMCs can provide regular reporting and added transparency regarding your corporate travel costs.

3.   Save by keeping track of budgets and travel spend.

Trying to ensure multiple employees stay on budget and adhere to company policies when they are booking their corporate travel can be challenging. If you have a strong policy in place, you’ll minimise non-compliance and even eliminate it if the TMC uses the right tools.

4.   Save by increasing staff productivity.

When they don’t have to spend time arranging travel, your employees can focus on what they do best. This can improve productivity because staff will not be distracted with travel concerns that can take hours to manage. Instead, they can do the jobs they’re hired to do.

5.   Save with more effective problem-solving.

If an employee gets stranded at the airport, misses their connecting flight or loses their luggage, an experienced TMC will know how to handle the situation in the most effective, cost-saving way. This reduces the likelihood that a travel mishap will lead to a budget blowout or other unfortunate consequences.

6.   Save with negotiated discounts.

Most TMCs have negotiated discounts with providers including car hire companies, hotels and airlines. Working with them lets you access these discounts and save money.

7.   Save time with tools.

Good TMCs use technology to their advantage. Online booking tools like Alienta help simplify the process of booking travel and allow you to access the best fares and rates possible on even rail and ferries. This not only saves your business money, it saves time as you know your employees are taking the fastest route from A to B (and C, D and E).

For businesses that rely on travel for their survival and growth, the cost can be significant. Outsourcing your travel management affords you the dual benefits of being able to save, while also getting a better level of service.

The demand for corporate travel in Australia has grown in recent years, and with it the demand for corporate travel services and new corporate travel technology. At the same time, evolving corporate structures mean that the idea of having a single department responsible for booking travel is becoming redundant for most.

Instead, busy executives are left to make their own corporate travel arrangements. This is an often-complex process that involves booking multiple flights, hotels and car hire in different destinations.

It’s more important than ever that travel management companies (TMCs) integrate digital management tools into the core of their business rather than relying on external platforms and apps.  This improves efficiencies and enables companies to keep travel costs to a minimum.

Disrupting the corporate travel industry

Changing consumer expectations are a significant driver of change across the travel industry as a whole. These expectations, along with a demand for transparency and greater efficiency within corporations, can be best met with the right technology.

Much as rideshare apps disrupted the taxi industry, a wave of online booking tools (OBTs) such as Serko, AeTM and Concur disrupted the corporate travel industry. Now, newcomer Alienta is further disrupting the OBT sector.

At JC Travel Professionals, we use Alienta to empower corporate travellers to manage their own travel and expenses. OBTs – and Alienta in particular – benefit our clients in a number of ways.

1. Transparency

The more transparent your pricing options are, the easier it is to determine the best value fares and avoid hidden costs. Transparency is crucial in corporate travel. It allows employers to view their staff members’ searches, travel requests, provide approvals and faster processing of expense claims. Alienta combines legacy airlines, low-cost carriers and other options like trains, buses and ferries. This gives you a complete picture of your itinerary and travel expenses over an entire trip.

2. Reduced costs

OBTs can help you reduce your costs by letting you compare multiple options in a single platform. It can even allow you to compare and book each leg inidviually so you can get the best price. Alienta stores and uses airline credits, individuals’ frequent flyer status and membership details. Cost savings on travel can lead to significant improvements on your business bottom line.

3. Greater efficiency

When you have all the information you need in a single platform, you can optimise both time and money. Alienta integrates with multiple GDS’. This means, for example, we can view and book car hire from hundreds of worldwide companies, including preferred negotiated rates. Our clients don’t need to search for that information separately when organising flights and accommodation.

4. Flexibility

Corporate travel can be unpredictable. Itineraries can change without notice and this can lead to unexpected costs, not to mention the stress of changing flights and hotel bookings. OBTs can help you manage those costs and keep them as low as possible. With Alienta, penalty and fare differences can be viewed at a glance and ticketed itineraries can be modified easily online.

Technology is a game changer in the corporate travel industry, and at JC Travel Professionals, we look forward to sharing the benefits of Alienta with our clients.

While many corporates have travel programs in place, bookings still fall through the cracks. Transactions take place on outside booking channels or with non-preferred airlines, hotels and car hire companies. This is what’s known as travel leakage.

Despite all efforts to create an exceptional corporate travel program, it can happen. And when it does, gaps start to form in your expenditure, your reporting and your data. This can cause administrative headaches and can cost the company significantly.

You’re not alone

The important thing to remember here is that you’re not alone. Almost all corporate travel programs, large or small, will experience leakage at some point in time. This is mainly because there are so many booking options out there for business travellers.

Many staff members will actually believe they’re saving you money by going for the cheaper option. Or it’s just easier to go for the booking system they are familiar with, rather than going through the appropriate (and approved) channels.

Why is it such an issue?

It generally costs more, even if employees believe they’re choosing the cheaper option. Airlines, hotels and car hire companies have provided discounted rates based on proven travel volume. So, any trip that goes undocumented undermines supply contracts you’ve worked so hard to obtain, and means there’s less ability to negotiate.

Fees can quickly mount up, for example penalties for altering bookings if plans change. There’s no visibility of the trip within the company reporting system either, which means you can’t accurately track travel spend.

Travel leakage can also impact your duty of care for employees. If the employee’s booking data isn’t in your central system, because it’s been booked outside, it can be difficult to locate them in case of emergency.

How you can avoid travel leakage

 While it might be difficult to eliminate out-of-policy travel bookings altogether, there are ways to minimise the problem.

Educate your employees

If employees don’t know it’s there, why would they commit to using your travel policy?

It’s crucial to educate employees about the policy, including how it affects them, what consequences there are if they don’t adhere to it, and the savings and benefits that the company gains through the policy.

Recognise likely offenders

There will always be those employees who have a tendency to think they are savvy enough to get a better deal! Or managers who prefer to go their own way. These are ones to keep an eye on. It’s also a good idea to include your travel policy in induction material for new hires, to make sure they aware of arrangements right from the start.

Make sure booking is quick and easy

For many employees, the reason they’re not using approved channels is because it’s simpler to hit the internet and find the cheapest deal. It’s also common to book outside the system due to last-minute travel decisions. Make booking through the approved channels manageable, convenient and quick, and employees will do it.

There’s no denying that travel leakage can negatively affect your business. But by understanding what is happening and why, and putting measures in place to mitigate it, you may be able to plug a few holes!

If you’d like to optimise your travel program and minimise leakage, talk to us about the right solution for your company.

JC Travel Team took part in the 2018 MonSTaR Cup golf day on Friday 23rd March at Pennant Hills Golf Club followed by the MonSTaR Ball at The Westin Sydney The event was a huge success raising an incredible $525,000 It was great to be part of this wonderful event and looking forward to being a support partner again for 2019