What to know about corporate travel programs and management

Quick insights

• Corporate travel programs are a way to help companies provide a better travel experience for their employees.
• Corporations often consider cost, compliance, care and convenience (often referred to as “the 4 C’s) when creating travel policies.
• Some corporations hire travel management companies to help manage their corporate travel programs.

Corporate travel can be a significant expense for many companies. With employees hopping on domestic and international flights, renting cars and checking into accommodations for days or weeks at a time, there is a lot a company needs to consider when designing and managing corporate travel programs.

Corporate travel management explained

Corporate travel management is the process of planning, managing and evaluating a company’s business travel. It can involve:

• Creating and enforcing travel policies
• Booking flights, rental cars and accommodations
• Negotiating with vendors
• Ensuring traveler safety and security
• Managing company credit card usage
• Handling travel and expenses

The role of travel management companies

For some large corporations, travel can be a significant expense. For this reason, companies may turn to travel management companies (TMCs) to help manage their travel programs.

In addition to running a company’s travel program, TMCs can provide guidance and oversight on policy implementation and employee compliance. They also can collect and analyze data associated with corporate travel programs to find cost savings and efficiencies while also improving travel experiences.

The 4 C’s of corporate travel management

One guiding framework companies may consider when creating travel policies is what is commonly called the 4 C’s. The 4 C's of corporate travel management typically refer to cost, compliance, care and convenience.

Let’s examine them a little more closely.

Cost

Cost refers to the expenses associated with corporate travel. The overall price of travel is an important factor for many businesses, but costs include more than just flights or accommodation. The cost of travel also encompasses meals, transportation and the cost of an employee’s time away from work.

Compliance

A company’s travel policy will only be as good as its employees’ willingness to adhere to it. A well-defined travel policy is helpful for managing costs and ensuring employee safety. Compliance can be improved through clear communication of the policy, regular training and the use of a corporate booking tool that only shows approved booking options.

Care

Companies have a duty to care for their employees not just while they’re in the office. Care often extends to corporate travel. It includes ensuring employee safety and well-being and providing support in case of emergencies while traveling. For example, a company might send an alert to an employee's phone if they are traveling to an area with a severe weather warning.

Convenience

Convenience refers to making the employee travel experience smooth and hassle-free. This can include providing a user-friendly booking tool, offering flexible travel options or providing 24/7 support for traveling employees.

Corporate travel management challenges

Corporate travel management can be complex and challenging due to a variety of factors. Some common challenges that many companies face related to corporate travel are:

• Balancing cost and comfort: Striking the right balance between controlling costs and ensuring employee comfort and satisfaction can be challenging. Most companies strive to manage costs without negatively impacting the productivity and overall experience of their traveling employees.
• Policy compliance: Companies may want to take steps to ensure compliance with the company's travel policy. When policies are disregarded, it can lead to increased costs and potential risks to the company.
• Traveler safety and security: Ensuring the safety and security of employees traveling can be a challenge. Companies may need to be aware of potential risks and have plans in place to support employees in case of emergencies.
• Data management and reporting: Collecting, managing and analyzing travel and expense data can be time-consuming. However, this data is crucial for tracking spending and identifying cost-saving opportunities.

Business credit cards in corporate travel management

Business credit cards can help to facilitate effective corporate travel management. Not only can they help to simplify expense tracking and reduce the need for reimbursement activities, but they can also provide rewards and perks to the company and its employees. Businesses can earn rewards and points on eligible purchases when employees use a company card for travel. And employees may benefit from travel perks that come with some company credit cards, including:

• Travel insurance
• Airport lounge access
• Priority boarding
• Rental car insurance
• Emergency assistance services

A company credit card may also be beneficial for the company by helping to improve employee compliance when making business purchases. Some cards allow primary users to set spending limits for employee credit cards, which can help manage travel expenses.

In summary

Corporate travel management can help companies handle the expenses and logistical complexities associated with business travel. A sound and comprehensive corporate travel program can help both companies and their employees navigate corporate travel with ease. Good policies have the ability to provide convenience and care for the traveler while also ensuring compliance with company policies and cost considerations.