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Republic of the Philippines

Department of Education
Region III–Central Luzon
Schools Division Office of Bataan
MORONG NATIONAL HIGH SCHOOL
Morong, Bataan

SELF-LEARNING
MODULE
TLE 10: Travel Services
Quarter 3 – Module 4

Topic : CORPORATE TRAVEL MANAGEMENT

MELC : Practice Corporate Travel Management
CG Code : TLE_HETS9-12MC-IIIa-e-5
Duration : 4 days (Week 4)
Objectives
At the end of this lesson, the learner is expected to:
1. Explain the value of corporate travel management; and
2. Interpret the principles of value of corporate travel
management
3. Differentiate the types of corporate travelers.

Value of Corporate Travel or Business Travel

Business trips are work-related and financed by the

company, business travel‘s primary consideration is the reliable
delivery of all aspects of travel arrangements. The person or
entity that finances the trip, expects some benefit from the trip
or the outcome of the trip, whether a corporation, a shipping
company or a couple needing a domestic helper.
The difference has a major impact in how the travel
arrangements are made and paid for.

The value of corporate travel management can be

summarized into three: financial controls; policy adherence;
and safety and efficiency.
Let‘s study them in detail one-by-one (Obando 2001):

1. Financial Control
 Having a professional travel Management Company or
competent in-house travel professionals that can manage
and negotiate travel-related services provides measurable
financial benefits to the corporation.
 The capabilities to monitor and analyze travel
expenditures are essential if cost cutting opportunities are
to be identified and taken advantage of.
 As a general rule, the appointed travel management
company or the in-house travel department works with
each department to determine its travel needs and develop
its travel budget, based on current spending and planned
development.

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  With the consolidated travel needs of the corporation, the
discounts and preferred rates are negotiated with the
travel suppliers based on company-wide needs.
2. Policy Adherence
 Corporate travel management also involves developing
corporate travel policies that optimize the company‘s travel
expenses.
 Proper procedures must be followed in order to adhere to
the company‘s travel policies. Otherwise, the company will
just be wasting money through more expensive bookings
especially with non-preferred travel suppliers.
 The linkage of the consolidated travel needs of the
corporation with the corporation‘s travel policies are
executed through the corporate travel procedures in the
managed corporate travel program.
 The corporate travel program guides the employees to
travel the way the management recommends.
 By taking advantage of the negotiated preferred rates or
discounts, a well-managed travel program pays for itself
through lesser costs and negotiated revenue, such as
rebates, overrides and incentive payments.

3. Safety and Efficiency

 Corporate travel professionals are responsible for providing
a valuable service to their clients, the corporate traveler.
 This responsibility involves ensuring that travel is both
safe and productive.
 Corporate travelers need a smooth, efficient travel process
in order to reach a company‘s business objectives.
 During national, corporate or personal crisis, travel
management professionals are vital in reducing risk to the
company and its travelers, through emergency tracking
and assistance.
 Corporate managers at all levels realize the non-monetary
benefits of their corporate travel department and the value
of the human factor.

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 Types of Corporate Travelers

Business travel is characterized by sponsored travel for

financial gain. This includes individuals both in government
and private sector, including the civil society and non-
governmental organizations. For the purpose of understanding
what corporate travel management involves, only a selected
number of business travelers will be identified and described.
Among the most common types are (Claravall 2008):
1. Businesspersons
 Are those who own or are owners-managers of their
respective business enterprise, who travel for various
reasons, mainly:
 to solicit additional contracts;
 to negotiate for a source of raw materials; and
 to participate in events of interest to the enterprise.
 Normally schedule travel well in advance and the enterprise
shoulders most travel expenses. Because the traveler is the
owner, travel expenses may be limited.

2. Corporate executives
 Are those travelers of executive rank, directors, assistant
and executive vice presidents, presidents, chairs and the
like, traveling to represent the company in events overseas,
or to attend corporate affairs in a multinational setting.
 Image is an important factor in nurturing prestige, travel
expenses are unlimited, but subject to the travel policies of
the corporation.
 Travel may happen once a year or once a month or as often
as necessary.

3. Corporate supervisors/rank-and-file
 Like the senior corporate officials, the lower ranks may also
travel to represent the corporation in meetings overseas or
attend training programs in the corporate headquarters.
 Travel budgets for these individuals may not be as large as
their senior counterparts, but is the corporation‘s image
plays a role in determining the travel budget.
 They travel as often as necessary.

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4. Mariners
 Or seafarers have travel needs which are either scheduled
in advance or are as need arises, normally under time-
sensitive schedules.
 They are needed in a certain port on a certain date, and
travel must be accomplished regardless of the cost.

5. Land-based overseas workers

 Normally travels one way, once a year, and seldom
purchase roundtrip tickets.
 The best example of these are the domestic helpers (DH)
based in Hong Kong

6. Government officials and employees

 Just like the corporate executives, supervisors and rank-
and-file, the Philippine government conducts missions to
foreign countries for various purposes – commercial,
diplomatic, military and the like. Government officials and
employees travel overseas on official business and such
require travel arrangements just like any other traveler.

Obviously, there are many more than those mentioned above,

however, these should suffice to give understanding of what
business travel or travel for business purposes is all about.

Review of Learning Outcome 1

Activity 1
Direction: On the space provided before the item number, write
FC if the statement falls under Financial Control, PA for Policy
Adherence and SE for Safety and Efficiency.
_______________1. Corporate managers at all levels realize the
non-monetary benefits of their corporate travel department and
the value of the human factor.
_______________2. Taking advantage of the negotiated preferred
rates or discounts, a well-managed travel program pays for itself
through lesser costs and negotiated revenue, such as rebates,
overrides and incentive payments.

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 _______________3. With the consolidated travel needs of the
corporation, the discounts and preferred rates are negotiated
with the travel suppliers based on company-wide needs.
_______________4. Corporate travelers need a smooth, efficient
travel process in order to reach a company‘s business
objectives.
_______________5. The corporate travel program guides the
employees to travel the way the management recommends.
_______________6. The linkage of the consolidated travel needs of
the corporation with the corporation‘s travel policies are
executed through the corporate travel procedures in the
managed corporate travel program.
_______________7. The appointed travel management company or
the in-house travel department works with each department to
determine its travel needs and develop its travel budget, based
on the current spending and planned development.
_______________8. Corporate travel professionals are responsible
for providing valuable service to their clients, the corporate
traveler.
_______________9. Corporate travel management also involves
developing corporate travel policies that optimize the company‘s
travel expense.
______________10. The capabilities to monitor and analyze travel
expenditures are essential if cost-cutting opportunities are to be
identified and taken advantage of.

Activity 2
Direction: Interview or search from Magazine or Internet a
person engaged in a travel business and list down /ask
him/her about the principles concerning corporate financial
control, policy adherence, and safety and efficiency principles.
Base from information gathered reflect on it.

Activity3
Direction: From the different types of corporate travelers,
construct and exhibit your expertise by making a poster and
express the focal idea of your poster. Use bond paper and
refer from the given criteria below.

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REFERENCES
o K to 12 Basic Education Program TECHNOLOGY AND LIVELIHOOD EDUCATION HOME
ECONOMICS LEARNER’S MATERIAL TRAVEL SERVICES Specialization Course for Grade 10
o Google Images