Optimising travel planning in turbulent economic times

Managing business travel can be complex, time consuming, and often costly, 

if not handled well. In today’s economic climate it can be tempting to put the 

brakes on travel expenditure by moving to virtual meetings with customers, to 

forego attending networking or trade events, or to connect less frequently with 

your team.

This approach is one of the ways you can reduce costs, but there is another 

way - one that sures you maintain strong relationships with your customers 

and your team, and to ensure you continue to grow your business in the 

years ahead.

Engaging with the experts

A good Travel Management Company (TMC) can help businesses streamline thebooking process, freeing your team up to work on other tasks, reduce costs and 

ensure that you meet your health C safety obligations.

Working with a TMC offers many advantages for businesses that travel both 

domestically and internationally. Let’s dive into some of these benefits that 

you can experience when partnering with a TMC…

1.  Cost Savings

One of the most significant advantages of working with a TMC is the potential 

for cost savings. Travel expenses can quickly spiral out of control, particularly 

when your employees are booking flights, hotels, and rental cars independently. 

A TMC can leverage its relationships with airlines, hotels, and other service

providers to secure corporate discounts and special deals. These discounts 

often come in the form of negotiated rates that are not accessible to the general public.

TMCs can also help your company manage and control travel expenses by setting up policies that limit unnecessary expenditures and guide people to smarter booking decisions. For example, a TMC can ensure that employees are booking within predefined budget limits or policies, using preferred suppliers, or flying on more cost-effective routes. With their experience and resources, TMCs help avoid costly last-minute bookings or last-minute changes that could lead to higher prices.

Examples of Cost-Saving Strategies:

• Preferred Supplier Networks: TMCs have relationships with airlines, hotels, and car rental companies that allow them to secure lower rates for their clients.

• Policy Enforcement: They can help enforce travel policies to ensure that employees are adhering to budget constraints, limiting over-expenditure. You can also include a customised approval policy to suit your business needs.

• Open Skies Policy: When booking through a TMC you can access the full suite of airlines in the one place – this means that your people aren’t just defaulting to Air NZ because it’s what they know and are instead able to most the most cost-effective and convenient flights.

2. Time Savings

Managing travel arrangements internally can be a huge drain on your team’s time, especially for organisations that frequently send employees on business trips. A TMC takes on the heavy lifting, managing the booking, and coordination of travel for your business. This allows your team to focus on more important tasks, like growing the business or managing operations.

An effective TMC offers great technology to help streamline the booking process, including flights, hotel rooms, car rentals as well as parking and taxis. Some TMCs also offer you a dedicated travel manager to help with more complex bookings and 24/7 assistance with last-

minute changes, cancellations, or emergencies, saving your team from getting bogged down in troubleshooting issues.

Examples of Time-Saving Benefits:

• Centralised Booking Platform: TMCs offer a single platform where employees can book and change their travel quickly and efficiently, cutting down the time spent on research and coordination.

• Expert Support: With a dedicated team of travel experts, TMCs can handle all enquiries and changes, allowing your team to focus on their core roles.

• Payment solutions: Centralising your travel bookings through a TMC means you get access to a monthly account, which improves cashflow and reduces the amount of time required to pay and reconcile travel costs.

3. Risk Management and Duty of Care

Safety is a top priority for any business when it comes to employee travel. While it’s impossible to eliminate all risks associated with business travel, TMCs play a crucial role in minimising them. A reputable TMC is equipped with systems and protocols to keep track of employees as they travel, offering live traveller tracking and support, for emergencies such as flight cancellations, natural disasters, or security issues at travel destinations.

In addition to monitoring risks, a TMC can ensure that your company complies with duty-of-care obligations. Duty of care refers to your responsibility to ensure the safety and well-being of your employees while they are travelling. A TMC can assist by providing emergency support,

monitoring travel itineraries, and even offering travel insurance options to protect your team.

Risk Management Benefits:

• Emergency Support: TMCs provide emergency assistance, including flight changes, hotel bookings, and even emergency evacuation if necessary.

• Business-friendly Accommodation: Your TMC will ensure that hotel and motel options offered to your people are in-line with your business requirements – removing any sub- standard accommodation options, so that your team are safe and comfortable.

• Travel Insurance: Many TMCs offer comprehensive travel insurance options to protect employees from unforeseen events.

4. Streamlined Reporting and Analytics

Another significant benefit of working with a TMC is access to robust reporting and analytics. Managing a corporate travel program involves keeping track of travel expenses, understanding patterns in bookings, and ensuring compliance with company policies. TMCs can provide comprehensive reports that give valuable insights into where your company’s travel budget is being spent and how it can be optimised. And, some TMCs, such as Corporate Traveller, can even provide live reporting tools that can be self-serviced.

These reports often include key data, such as – month to date expenditure by department, the most frequently used routes, the most common hotels booked, and whether employees are

adhering to travel policies. This data can help you and your travel partner identify cost-saving opportunities, such as switching to less expensive travel options or consolidating bookings with specific airlines or hotel chains.

Analytics Benefits:

• Data-Driven Insights: TMCs generate detailed reports on travel spending, helping you identify patterns and find areas to reduce costs.

• Compliance Tracking: With automated reporting, it’s easier to monitor whether employees are following travel policies and procedures.

• Budget Management: By regularly tracking travel expenses, a TMC can help you forecast and manage your company’s travel budget more effectively.

5. Access to Expert Knowledge and Consultation

TMCs are staffed with travel experts who are well-versed in the complexities of corporate travel. They understand the nuances of booking international flights, organising multi-leg journeys, and selecting hotels that meet the specific needs of business travellers. This level of expertise ensures that your employees are getting the best travel options available, all while optimising costs and travel time.

Additionally, TMCs offer strategic advice and consulting services. If your company is looking to improve its travel programme, reduce costs, or enhance employee satisfaction, a TMC can provide guidance based on industry best practices and trends.

Expert Knowledge Benefits:

• Tailored Solutions: TMCs can provide customised travel solutions based on your company’s unique needs, from budgeting to booking.

• Consultative Approach: TMCs work closely with clients to develop travel strategies that align with company objectives, helping to optimise travel programs over time.

• Industry Insights: TMCs stay updated with the latest trends, ensuring that your travel program remains efficient and competitive.

6. Improved Traveller Experience

A major concern for business travellers is the overall experience, which can be stressful if travel arrangements are complicated or unclear. TMCs focus not only on the logistics of travel but also on ensuring a smooth and hassle-free experience for your employees. By managing all aspects of the trip, including flight reservations, accommodation, ground transportation, and more, TMCs help ensure that business travellers have a positive experience from start to finish.

With a TMC, employees can access 24/7 support in case of issues or changes in plans. This level of assistance can help alleviate stress for travellers, allowing them to focus on the business objectives of their trip rather than worrying about logistics.

Traveler Experience Benefits:

• 24/7 Support: Employees can access support at any time, ensuring quick resolutions to unexpected travel challenges.

• Personalised Service: Many TMCs offer personalised services, ensuring that each trip is tailored to the employee's preferences and needs.

• Reduced Travel Stress: By managing the details of the trip, TMCs reduce the burden on employees, leading to a more positive travel experience.

Is a TMC just an extra expense to my business?

TMC’s do charge fees for their services – generally around 3% of your total travel spend. But, a well devised travel programme will significantly more than this, resulting in overall cost savings for your business, and, of course, less work for your people.

Conclusion: Why You Should Consider a Travel Management Company

The benefits of working with a Travel Management Company are clear: from cost savings and time efficiency to improved traveller experience and risk management. TMCs offer a comprehensive solution to corporate travel, helping businesses optimise their travel programmes, ensure the safety of their employees, and improving overall efficiency.

In a world where business travel is integral to success, partnering with a TMC allows businesses to focus on what truly matters - driving growth and achieving goals, while leaving the logistics and complexities of travel to the experts.

If your business is looking to control costs, increase employee satisfaction and operational efficiency then talking to a TMC, such as Corporate Traveller, would be a great starting point.

To explore the benefits of engaging with a market-leading Travel Management Company for your business reach out to trusted industry expert, Sheree Drinkrow by email – sheree.drinkrow@corporatetraveller.co.nz or by phone on 022 428 9524.

BIO

Sheree Drinkrow is part of the team at Corporate Traveller New Zealand and has been in the travel industry and the wider Flight Centre Travel Group, for nearly 25 years. She is an expert in solving a wide-range of challenges for businesses across Aotearoa, particularly in managing and reducing costs in travel programmes.