Author: acetraveldev

TMC stands for Travel Management Company, and is a staple in the world of B2B. TMC’s serve the needs of businesses around the globe that need to shift people from one location to another, within specific timeframes and budgets. 

For a business, arranging travel can become a time-consuming process. It requires searching for the most cost-effective routes that still allow employees to get where they need to, on time. Accommodation must be arranged too, with the personal requirements of the employee and budget in mind. Further travel arrangements may need to be worked out to transport the employee from their accommodation to their workplace, and there still may be more to do depending on the nature of the trip.

The benefits of using a travel management company are that they handle all of this, from start to finish. Not only are they experienced with handling all of the arrangements for a variety of trips and headcounts, they often have access to discounted rates on travel and accommodation. This means businesses ultimately save money on travel and accommodation, and can rely on their TMC partners to iron out any details, report on expenses, provide risk management and much more.

Why use a travel management company?

The core of what a TMC provides is flight and accommodation planning and booking. While that is simple for an individual to manage on their own in a private capacity, businesses are responsible for the safety of employees and must provide adequate travel and accommodation. This quickly becomes complicated when planning travel for numerous employees with different needs. Existing staff likely have other responsibilities and will not be experts in this field, which is why many businesses contract TMCs to handle all of their travel and accommodation needs.

ACE Travel is a part of the Advantage Travel Partnership, a group made up of independently owned travel management companies. Membership of this partnership comes with numerous advantages, such as personal contacts with major airlines around the world and steeply discounted travel. Being a part of a larger, international group is something every quality travel management company does, as it allows them to collectively seek better prices for clients.

Flights and accommodation are a large part of what TMCs do, but there are numerous ancillary services that TMCs are responsible for too, such as visa procurement, airport lounges, hotel requests, foreign exchange, insurance, leisure travel and so much more, depending on the trip.

Having to manage all of this in-house can be difficult, and this doesn’t cover everything that a business needs when travelling. Not only will staff be pulled away from responsibilities to constantly work on the travel plan, they cannot secure the best rates or speak directly to airlines and hotels to find solutions to unique problems. Ultimately, it costs less to use a TMC than for businesses to arrange and oversee trips themselves.

Developing and implementing travel policies

For any business involved in regular travel, creating and implementing a travel policy is essential. It creates a basic framework that is used to build every trip, cutting down on negotiations and back-and-forth questioning between the TMC and its client. 

Travel policies can be diverse with their terms. They can place restrictions on the type of travel used, classes, types of accommodation, when premium services can be used, whether families can join, and much more. The importance of sustainability in travel is only growing, and many TMCs have integrated sustainable travel into their service by offering alternatives such as rail or coach travel where possible.

Travel expense policies are also important, setting restrictions around what the company will pay for, how many meals a day are budgeted for and other areas that need to be controlled. Effective systems have restrictions in place that do not allow employees to breach the policy, and it takes a travel management company to build out the policy and make sure it’s followed diligently. 

A set of policies creates a transparent system in which everybody understands the restrictions, and potential costs. It limits the possibility of spiralling or unknown costs, and helps businesses to budget well in advance. The benefits of using a travel management company policy is the years of experience that go into creating policies and working with corporate clients. Ultimately, businesses save time and money by contracting travel policy and management to TMCs.

Managing expenses and reporting

Before the advent of technology and computers, TMCs would manage expenses manually. They’d keep records of previous spending and use that to create plans for future trips, however, technology has completely transformed this area of work for TMCs.

Expense tracking tools now seamlessly integrate with booking and financial systems. These tools accurately capture data on travel expenses, including flights, accommodation, transportation, meals, and other related costs. These same tools often include automated expense reporting capabilities that give clients real-time figures. They also have the benefit of creating comprehensive reports that are easy to read and interpret for clients.

Many TMCs employ cost analytics and optimisation tools based on all the data they’ve gathered from working with the specific client and others. By using historical data, TMCs are better placed to identify cost-saving opportunities and trends that allow them to better negotiate with suppliers.

Reviewing travel policies is important to address new priorities or a material change in circumstances for that client. It’s an opportunity to review any breaches of the policy, weaknesses and areas for improvement.

What makes these tools especially useful for clients is having access that allows them to view their spend and policy in real-time – this provides a sense of comfort and ownership that clients need to spend with confidence.

Real-time travel support and assistance

TMCs do plenty of groundwork before anyone takes off or steps on board, but they’re always on-call during periods of travel, offering emergency assistance and advice as necessary. 

Travelling to certain destinations requires a degree of leg-work before any gets to the airport, and that normally involves obtaining visas, and sometimes, passports. TMCs take on that responsibility after gathering the basic information needed for an application, and typically procure visas on their clients’ behalf.

Dedicated consultants are on hand 24/7 to take emergency calls and messages, and deal with smaller issues. More often than not, they tend to have some knowledge of the destination of the trip due to their expertise and experience. These same consultants are on-hand to help deal with ancillary issues like airport transfer and any special accommodation required for individual travellers. 

Client safety is of paramount importance and our consultants are always keeping their eye on the area, informing clients of any issues or hazards that may affect them. TMCs seek to implement duty of care practices and try to minimise risks from the planning journey.

Wraparound care from start to finish

TMCs are a necessity. The world of travel, and all that comes with it has become too complex for individual businesses to tackle without expert support. The chances are that a business will inadvertently spend more than it actually needs a due to a lack of expertise on the best routes, times to book and more.

On top of that, TMCs tend to be members of global businesses or groups such as the Advantage Travel Partnership that a leading travel management company like ACE Travel can take advantage of to secure cheaper rates. In addition to the money saved on travel and accommodation expenses, specialised travel consultants are always on hand to deal with issues in real-time, or facilitate special accommodations.

By working with a business travel management company to establish a robust travel policy, businesses will be able to see travel expenses falling relative to in-house booking, and higher levels of support before, during and after the trip.

Still curious about what a travel management company can do and can offer your business? ACE Travel is a global travel management company with decades of experience under its belt. Read more of our blogs in the insight section, or give one of our team for a no-obligation call about your business travel needs.

Business travel is a significant investment for companies, ranking as the second largest expense after employee salaries. However, when managed effectively, it can generate substantial returns. In fact, studies show that businesses can earn nearly £10 or more in incremental revenue for every dollar invested in business travel. But, managing corporate travel is no easy feat. It involves juggling numerous responsibilities, from consolidating travel expenses to creating itineraries and addressing unexpected issues. In this blog post, we will explore the concept of business travel management as well as 5 key challenges, offering practical solutions for modern businesses.

What is Business Travel Management?

Business travel management refers to the strategic planning, coordination, and control of travel activities undertaken by employees on behalf of an organisation. The primary goal is to optimise travel arrangements, control expenses, and enhance employee productivity and satisfaction while aligning with the organisation’s objectives. With this in mind, let’s take a look at the 5 key challenges that can arise when undertaking business travel management.

Challenge 1: Balancing Spending with Traveler Welfare

Business travel management poses the challenge of balancing cost savings with ensuring the well-being and satisfaction of travellers. While controlling expenses is important, it’s equally crucial to consider employees’ welfare during business trips. Achieving this delicate balance requires a thoughtful approach that incorporates financial considerations and traveller preferences.

To address the challenge, companies can empower departments for collaborative planning. By involving various departments in the process, decision-makers can gain valuable insights into each department’s unique travel requirements, preferences, and non-negotiables.

Engaging in discussions about travel frequency, spending caps, and performance targets allows for a comprehensive and balanced business travel management policy. Furthermore, considering factors such as when first-class accommodations may be warranted ensures that traveller welfare is taken into account, promoting comfort and productivity during important business engagements.

Challenge 2: Boosting Hotel Compliance

It is not uncommon for employees to deviate from the approved travel policy and book accommodations through unauthorised platforms. This non-compliance often stems from a lack of awareness regarding the policy guidelines and the potential impact it has on cost savings and expense management. Overcoming this challenge and enhancing hotel compliance within business travel management requires finding effective ways to communicate and educate employees about the importance of adhering to the travel policy.

To address the challenge of boosting hotel compliance, companies need to focus on clear policy communication. Upgrading the travel policy is not enough; it is crucial to ensure that all employees are aware of its existence and understand its implications. By sharing the updated policy with the entire workforce, companies can increase awareness and provide clarity on the preferred booking channels and approved platforms.

The communication should emphasise the benefits of booking accommodations through authorised platforms, such as cost savings and streamlined expense management. Employees need to understand that by adhering to the policy, they contribute to overall cost efficiency and help maintain a fair and consistent approach to hotel bookings. Furthermore, the potential repercussions of overspending on luxurious hotels should be discussed, highlighting the impact on the company’s budget and the need for responsible spending.

Challenge 3: Managing Non-Employee Spending

When it comes to business travel management, keeping a handle on non-employee spending poses another significant challenge. We’re talking about those who aren’t officially on the payroll but play crucial roles, like contractors, evaluators, and interns.

Start by offering them adequate insurance coverage, assuring them that you’ve got their back in any emergency situation. Implement protocols to track their safety and well-being during their travels, ensuring they’re never left in the lurch. Remember: treating non-employees with care and consideration is key.

Clearly communicate the guidelines for their travel expenses, reimbursement policies, and any potential travel benefits they may be eligible for. And here’s a game-changer: consider extending some of those sweet travel perks to non-employees, so their experiences align with your business goals. This little extra effort can boost their satisfaction, foster stronger working relationships, and ultimately contribute to the overall success of your business objectives.

Challenge 4: Handling Bleisure Travels

Picture this: employees jetting off on business trips, but instead of simply focusing on work, they’re also indulging in leisure activities. Welcome to the world of “bleisure” travel, a rising trend, especially among millennials. While it’s a great way to boost employee satisfaction, this merging of business and leisure can pose challenges. Safety risks and additional costs lurk around the corner. So, how can you navigate this unique challenge? The key lies in enforcing policy consistency that balances the desire for leisure with the need for safety and cost management.

To conquer the challenge of bleisure travels, it’s time to establish a clear course with policy consistency. Start by requiring employees to book their flights and accommodations through authorised platforms. This not only ensures consistency but also allows you to keep tabs on their whereabouts, even during non-business hours. Safety should always be at the forefront, so don’t forget to include provisions for travel insurance to protect employees and the company from unforeseen events.

Guidelines for bringing family members along can help strike a balance between work and personal life. By setting boundaries and expectations, you can manage potential risks and keep costs in check. It’s about finding the sweet spot where employees can enjoy their leisure time while staying aligned with company policies and goals.

Challenge 5: Balancing International and Local Trips

Business travel in the global arena presents a distinctive challenge for multinational companies: the need to harmonise global rules while accommodating the idiosyncrasies and exceptions of each local destination. So, how do you successfully navigate this intricate web of international travel? The solution lies in the creation of specific policies tailored to the realm of international travel, which empowers employees while upholding a sense of control.

Striking the right balance between international and local trips necessitates a customised approach. It is imperative to develop a dedicated rule book exclusively focused on international travel, allowing for the accommodation of diverse needs and cultural norms across various countries.

Nevertheless, it is crucial to avoid excessive policy creation for destinations where your company seldom operates. Instead, channel your efforts towards areas of frequent travel and establish clear guidelines for one-off trips. This targeted approach ensures a harmonious equilibrium between flexibility and control, granting employees the liberty to navigate the complexities of international travel while preserving consistency and aligning with your organisation’s objectives.

Should I outsource my business travel management?

Managing business travel in the modern era requires tackling various challenges. By striking a balance between spending and traveller welfare, boosting compliance, addressing non-employee travel, handling bleisure trips, and balancing international and local considerations, organisations can optimise their travel programs. Effective business travel management leads to improved cost control, enhanced employee satisfaction, and increased business success. And by implementing practical solutions and clear policies, businesses can navigate the complexities of business travel and achieve.

Here’s where ACE Travel Management UK can help. We couple our extensive global capabilities with tailored business travel management operations to deliver a truly comprehensive strategy built around you. From global and regional solutions to AI personalisations and everything in between, we enable you to travel with confidence. And best of all, we tackle all of these business travel challenges head-on, so you can rest easy knowing that your business travel is being taken care of by experts.

If you would like to know more about what we offer here at ACE Travel Management UK, take a look at our services here.