Corporate Travel Management addresses all functions - solutions can also be found on the market for

associated with supporting business travel employees, management of the advances needed for corporate
customers, vendors and business partners. companies traveler's allowances. thus, the potential for
may rely on in-house corporate travel management improvement is huge, thanks to software programs/
teams, travel agencies, online booking tools or systems, that brings together all these functionalities.
any combination of those options to perform these - the evolution of technology needs to move in line the
functions. evolution of the service providers. working with
service providers that use systems from ten years ago,
WHY IS CORPORATE TRAVEL MANAGEMENT which are outdated and paper-based, for example,
IMPORTANT? would hinder the management of corporate trips.
Business travel management plays a key role in helping
companies get the most out of their travel budgets by CORPORATE TRAVEL MARKET OVERVIEW
ensuring they are not overpaying for transportation and - travel and tourism is an important sector as it makes a
accommodations. it also establishes how employees significant contribution to jobs and global trade.
arrange business trips and ensures all travel spend is - it is projected to rise at a rate of 3.8% per annum, from
allocated in the best interest of the company. a 2018-2028, to reach 11.7% of total GDP in 2028.
well-managed corporate travel program is also important business travel spending generated 22.5% of direct*
to ensure traveler safety. travel and tourism GDP in 2017. it is expected to grow
by 7.1% in 2018 to reach USD 1.4 trillion and further
EVOLUTION OF CORPORATE TRAVEL expand to USD 1.7 trillion in 2022.
MANAGEMENT - this growth is being experienced post an era of
- As mentioned above, the business travel and travel uncertainty in business travel spending.
management sector is constantly changing. but there - early 2000’s witnessed an upswing in business travel
are also changes in the people travelling, their tastes, expenditure, but the great recession of 2008 saw many
needs and even values. companies cutting their travel expenses.
- personal service, networking and convenience have - this period witnessed erratically changing travel
replaced other values in travel management, such as spends businesses.
luxury or exclusivity. - business travel spend has now been able to reach the
- one of the most noticeable changes is in the pre-recession levels and it seems to have embarked on
technological evolution. advances in connectivity an unprecedented growth trajectory in recent years.
allow corporate travel managers to remain connected - predominantly been driven by strong growth in
24 hours a day with the teams of employees they emerging markets and modest growth in North
manage, overcoming obstacles such as distance or America and Europe. the direct contribution reflects
time zone differences. the “internal” spending on travel and tourism total
- in addition, other platforms also facilitate this spending within a particular country by residents and
communication through specific applications so that non-residents for business and leisure purposes.
the traveler can make travel requests to the travel - as well as government “individual” spending –
manager. this communication channel allows part of spending by government on services directly linked to
the management process to be automated, for added visitors, such as cultural (example: national parks).
fluidity and efficiency
- in addition to the constant contact, there are many CHANGING WORLD DYNAMICS
technologies to collect more data and of a higher - classifying the world’s major business travel markets
quality that allow in-depth analysis of information on into segments reveals an impending shift in the
business trips. dynamics of the global travel market.
- for example, in managing expenses, having current - the stalwarts constitute close to half of the global
and detailed data through specialized platforms allows market and comprise many of the world’s major
one to find possible methods of saving, problems in economies
applying expenditure policies, etc. that is, it allows the - India, China, and Indonesia, which were once
improvement and optimization of travel management considered emerging markets, now form their own
in general.

 segment and continue to grow at an extremely rapid CHALLENGES IN BUSINESS TRAVEL

pace. 1. Travelers’ Safety extreme weather events, terrorism,
- this segment is projected toe be the largest in the racial tensions, escalating geopolitical rhetoric along
world by 2035. with increase in number of solo woman travelers is
- South Asia is expected to be the fastest-growing world making travelers’ safety the foremost concern for
region over the next ten by years. corporates today.
2. Rising Hotel Costs hotel room occupancy across the
GROWTH DRIVERS FOR BUSINESS TRAVEL country has recorded a nine-year high.
- tech firms driving outbound business travel - this strong upswing in occupancy level is expected to
- India has expanded from traditional outsourcing to increase average room rates significantly in the
advanced technology and product development, coming years.
alongside many other areas of business. 3. Data Security travel businesses are responsible for
- the top international destination for India’s business vast amounts of traveler information.
travellers are driven largely by the technology sector, - as data passes from corporate client to TMC (travel
with tech travel flows now stronger than those of management company) and onto suppliers and
financial services. intermediaries – many of whom have storage centers-
ensuring data security is becoming a challenge.
Rise of Startups & SMEs
- The rise in corporate travel can also be attributed to a CORRELATION BETWEEN GLOBAL TRADE
parallel rise of the start-ups in the country. VOLUME AND BUSINESS TRAVEL SPEND
- growing expansion of organizations, rising income - the potential for trade wars is the biggest challenge
levels and the growing need to network are driving being faced by global business travel.
business travel further. - imposition of increased tariffs and associated
retaliatory measures could severely impact the global
Rise of Shared Economy Services economy and the global business travel market in
- sharing economy services such as Ola, Uber, Oyo, tandem.
Grab, Airbnb have introduced services that are more - an analysis of the mathematical correlation between
efficient, economic and convenient than traditional the two shows that nearly 60% of the variability in
services providers. global business travel spend can be explained by
- companies are exploring this market to reduce costs global trade volumes.
and increase productivity.
RISE OF TERRORISM
Tech Enhanced Travel - with the rise in political unrest and terrorism around
- corporate are now taking to new travel tools that drive the globe, businesses need to take into account the
savings, efficiencies, compliance and traveler safety. safety of their employees who travel for business.
- travel booking tools are solving issues of multiple - according to survey 50% of corporate buyers have
bookings from different vendors, reimbursement etc. witnessed an increase in the number of business
by deploying technology. travelers reporting heightened personal safety
- they are also driving efficiencies by minimizing the concerns and quarter witnessed more requests for
amount of time employees spend in travel security training in the last six months.
management.
THE DISCERNING BUSINESS TRAVELER
BLEISURE - millennials are expected to account for almost half the
- the average length of stay for business destinations global workforce since 2020.
that was 2.5 days come years ago is now 4 days, - these millennials are intrinsically tech-savvy, socially
which indicative of how business travelers are and environmentally responsible, and nearly twice as
extending their stay to explore various places around likely to want more business-related travel than
their work destination, thereby mixing work and previous generations.
leisure. - they desire to experience the world and are enabled by
rising disposable income levels, a connected and





 globalized workforce and are influenced by social - to ensure this trend has a positive impact, both
media. employer and employee must be able to clearly
- this is leading to emergence of trends such as bleisure, articulate where their respective responsibilities lie
value driven and mobile friendly business travelers, with respect to policy and insurance.
and an increase in women travelers.the advent of a
millennial workforce amplifies the need for employers VALUE FOR MONEY
to understand the expectation, and habits of the next - from a corporate perspective, providing employees
generation of employees. this is crucial for attracting with some flexibility and freedom to make their own
and retaining talent business travel choices, within specific parameters,
- with rapid globalization and technological advances, can be beneficial.
corporate travel is witnessing an upswing. - by pre-negotiating rates with a variety of airlines and
- there is an increased need for businesses to travel in hotels, there is greater scope for employees to select
order to maintain their business relationships, expand the option that best suits their needs while complying
and deliver enhanced customer experiences. with company policy.
- business travelers, in turn, are motivated by personal - millennials have a passion for unique experiences and
ambition and desire for recognition. are not confined to traditional transport and
- they also see it as an opportunity to grow both accommodation options.
personally and professionally. - with the evolving landscape of the travel hospitality
- when they travel, they are looking for convenience, industry, options beyond traditional hotels have caught
comfort and connectivity to stay productive. the attention of corporates and business travelers.this
love for value and freedom of choice are two of the
COMBINING BUSINESS WITH LEISURE main drivers behind the growth of shared economy
- the modern workplace is becoming more adaptable services.
and flexible in nature. - the rise of sharing economy platforms such as oyo,
- with corporates increasingly adopting “work from airbnb, Ola, Grab, Uber, etc. benefits employees and
home” policies and flexible working hours, the line organizations alike.
between personal and professional lives in blurring. - they enable organizations to be more cost efficient,
- millennials have embraced this flexibility and have success to a range of options and better
freedom, especially with respect to travel and often locations.
extend their business trips to include leisure days or - for business travelers, they help to satiate their craving
experiences. for unique experiences while fulfilling their need for
- bleisure is a commonly used term for when employees comfort.
combine their business trips with leisure activities. - thus, travel managers all over the world are beginning
- corporate houses are increasingly allowing flexibility to consider integrating sharing economies like oyo
in business trips to adapt to this rising trend. into corporate travel programs.
- aged 20 to 25 are most likely to merge their business - leading TMCs have already initiated partnerships with
and leisure trips. such platforms.
- these travelers tend to take one or two such trips a - with the help of TMCs, corporates can further evolve
year, regardless of the demographic segment or travel their travel policies and offer their travelers the ability
frequency.destinations with longer flights tend to have to book their preferred accommodations. however,
a higher likelihood for bleisure. there are many concerns, around safety and security,
- financial and industrial hubs such as Singapore, cost, licensing and taxes , employment practices , and
Malaysia, Dubai, Hong Kong, Turkey, and London are data security that need to be addressed before such
growing in popularity as bleisure destinations. platforms are incorporated into corporate travel
- senior executives of companies are sometimes programs.
accompanied by their spouses/families for business
trips to such locations. these travelers often tend to MOBILE FRIENDLY
extend their business trip over a weekend to relax.92% - the business travel industry lags behind leisure travel
of millennials nowadays eagerly look forward to their in terms of mobile booking technology.
next business trip and it is a coveted business perk.

- there is a growing demand for mobile capabilities in COMMON WORDS USED TO DESCRIBE A
business travel. COMPANY CULTURE
- these travelers prefer to research and book both fights 1. Friendly Shows that employees engage with one
and accommodations on mobile. another in a positive way throughout the workday.
- millennial travelers rely on technology for the entire Some other words that can be used to describe this
travel booking process – from online reviews to type of culture include “warm,” “sociable,” or
mobile booking and check-in to staying connected “amicable.
with colleagues in a new city. 2. Challenging Indicates that employees are encouraged
- majority of travelers prefer online methods of to explore the full potential of their skill sets, and
research as it provides greater information, that they’re likely to grow through the job
occasionally better deals and higher level of experience. You can also use words like “stretching,”
convenience. “exacting,” or “resilient.”
- hence providing a seamless and mobile friendly travel 3. Motivating Implies that the company is inspiring,
experience in a business ecosystem, can help improve and employees will feel compelled to work hard.
an employee’s over all travel. 4. Engaging Suggests that employees will feel invested
in their work because it speaks to their interests.
WHY BUSINESSES SHOULD USE CORPORATE 5. Nurturing Conveys that the company is invested in
TRAVEL MANAGEMENT AGENCIES? employees’ growth and development.
1. Reduce Costs a major advantage of using corporate 6. Collaborative Signifies that employees and teams
travel management agencies is reducing travel costs. will work well together cross-functionally to
This includes accommodation rates, insurance, accomplish their goals.
airline tickets, and any other related expense. A 7. Autonomous Expresses that employees are trusted to
business travel agent will have the necessary have ownership over their work and that they have
experience to find or negotiate the best possible the individual power to improve results.
deals for the company.
2. Time Management organizing a business trip can IN-HOUSE TRAVEL MANAGEMENT AGENTS
take considerable time, so if you manage a medium - an employee you hire for taking responsibility of
or large company, you won’t have time to book your booking trips, making last-minute changes to the
business travel yourself. A dedicated corporate travel travel itineraries, and maximizing your savings whilst
manager will take care of these tasks so you and your finding the best deals for your employees
staff can focus on everything else - By hiring an in-house travel management agent, you
3. Efficiency as corporate travel is on the rise, most can be sure of working alongside a trusted employee
businesses opt for a corporate travel management who’ll make your business travel planning easier.
agency to ensure their employees travel safely whilst - Another advantage of hiring an in-house agent over an
adhering to all the relevant travel policies. external one is the fee or commission you will avoid
paying to that agent.
COMPANY CULTURE - An in-house travel agent may not always be available
- Refers toe the set of values, ethics, and belief that in times of a crisis as they often work solo.
define the day-to-day operations and atmosphere at an
organization. EXTERNAL CORPORATE TRAVEL
- It impacts everything from high-level business MANAGEMENT AGENTS
decisions to the vibe in the communal kitchen. - are specialized in the field of corporate travel and have
- Culture at an organization originates from leadership, extensive experience in booking business travel.
but all levels within a company-from hiring to setting - These individuals are available at your request and use
employment policies to interacting within a physical online booking tools that will maximize cost savings.
space-play role in defining it. - The main difference between an external and in-house
agent is that you’re not employing the person to
handle your business travel needs; you’re paying them
a fee or commission every time they make a booking
for you.

- A dedicated team of external travel management
agents will be available 24-hours a day. Should one of
your employees run into difficulty abroad – whether
they’ve fallen ill or lost their luggage – the agents will
be on-call 24/7 to assist them.
AUTOMATED TRAVEL MANAGEMENT VS.
HIRING A TRAVEL MANAGER
- Until recently, companies had to decide whether to
hire people to support and manage travel or to rely on
outside agencies to oversee those functions and then
let accounts payable departments enforce policies
when reimbursing employee expenses.
- While some companies choose one or the other and
others go with a blend of both, nowadays companies
have the option to automate much of the travel
management process.
- Some business management platforms, for example,
offer corporate travel management capabilities. Many
of the leading platforms have features including
expense management, analytics, client management
and project management, which together serve to
automate travel management.
- These platforms also give accounting teams real-time
information on travel’s impact on financial
performance.
HOW IS AI CHANGING THE TRAVEL
MANAGEMENT LANDSCAPE?
- Business travelers are now actively using tools to
automate travel management. With recent advances in
artificial intelligence (AI), they can now book a
business trip with online booking tools even faster.
- For example, American Express Global Business
Travel (GBT) is among the firms using AI to automate
business travel planning. The global travel agency
now has a recommendation engine that uses a
traveler’s history to help find suitable
accommodations when planning a trip.
- But it is not just the giant travel agencies that are using
AI to help automate business travel booking and
related processes. Airlines, hotel operators and car
rental agencies have started introducing chat bots to
address routine inquires and issues. People are using
voice commands for recommendations and to place
reservations. These technologies are starting to appear
in workforce automation, help desk and other business
process management systems to enable increased self-
service to routine processes.
CHALLENGES OF CORPORATE TRAVEL
MANAGEMENT
- Employee desire for flexibility and comfort can
conflict with a company’s efforts to manage costs.
- Services that were once included in the cost of airfare
or a hotel booking may now cost extra, creating
disparities in company policies.
- Escalating cancellation or change fees are costly if
employees make errors when booking.
- Company polices can often limit employees’ ability to
choose lower-cost services that they discover on their
own.
- Many companies still lack ways to calibrate the needs
of the business with costs and changing business
conditions when it comes to travel.
- Accounts payable policies are not always aligned with
corporate travel management. The reimbursement
process is very manual and requires significant
resources to review and verify receipts for travel
expenses.
How to Institute a Travel Management Policy
- Every company should have a documented travel
management policy and one that they enforce. The
policy should be reasonable and ideally put together
with input from employees who frequently travel.
Gathering that input will reduce non-compliance,
which by various accounts is high.
TRAVEL POLICY
- A company’s travel policy needs to include rules
enabling the organization (company or institution) to
carry out and control the entire travel management
process, with the principal aim of optimizing resources
while ensuring travelers' safety.
- The Travel Manager is the key figure in this task. His
or her mission is to anticipate all the needs that need to
be considered so that everything is properly defined
and there are no doubts or undefined “loose ends”,
involving people from each department that could be
affected and preparing the proposal for validation by
management.
- However, it needs to be made clear that it is not the
Travel Manager who controls the implementation of
expense policies by travelers, nor is it his or her role to
“police” these expenses.
- Do not forget that travel policies need to evolve, so it
is also necessary to know what occurs in practice, on
trips, and to have a real vision of these rules and their

 application. Thus, throughout the year the Travel

Manager will have to assess and review these policies,
to provide professional and grounded judgment in
order to propose any modifications or improvements
to be made.
- The Travel Manager needs to channel both the positive
and negative opinions of travelers so that they can be
taken into account and solutions can be sought