Imagine this: you have a business trip coming up to New York City, the most expensive U.S. city for business travelers, with a daily average cost of $541.
But instead of planning the trip, you’re drowning in a sea of flight options, hotel comparisons and car rental quotes.
Enter corporate travel management, your ticket to an easy–boarding pass?
Corporate travel management (CTM) is your one-stop shop for all things business travel. It’s a program that helps companies streamline the entire travel process, from booking flights and hotels to managing expenses and ensuring employee safety.
A corporate travel manager is the mastermind behind your smooth travel experience. They’re experts who design and manage your company’s travel program. They negotiate deals with airlines and hotels (remember, business travelers are highly valuable to airlines!), handle bookings, and provide support to traveling employees.
Absolutely! Here’s why:
CTM programs negotiate corporate rates and track expenses, saving you big bucks. Did you know that while business travelers only make up 12% of airline passengers, they account for 75% of an airline's revenue on some flights?
Corporate travel management programs help you tap into those corporate discounts.
No more endless searches! Employees can book flights, hotels, and car rentals through a user-friendly online platform or app.
Imagine the time saved compared to the pre-internet days, when business travelers took 405 million long-distance trips a year in the U.S., mostly by car for destinations under 250 miles!
Corporate travel management programs prioritise employee safety with features like travel alerts and emergency assistance.
Corporate travel management programs typically charge a small fee based on transaction volume or a retainer model. But guess what? The savings they generate often outweigh the cost.
Let’s break it down with an example:
Scenario: Imagine your company takes 100 business trips per year, costing an average of $2,000 per trip (including flights, hotels, and car rentals). This translates to a total annual travel spend of $200,000 ($2,000/trip * 100 trips).
CTM fee: A CTM program might charge a fee of 2% per transaction. So, for your 100 trips, the CTM fee would be $4,000 ($2,000/trip * 100 trips * 2%).
Savings potential: Here's where CTM programs shine. Through negotiating corporate rates and optimizing travel spend, a CTM program could potentially save your company 10% on travel costs. In this example, that translates to $20,000 in annual savings ($200,000 * 10%).
The math: Even after factoring in the CTM fee, you come out ahead:
Yes, but with a safety net! Most programs allow employees to book within the company's travel policy through the CTM platform. This ensures they get the best rates while adhering to company guidelines.
CTM programs negotiate corporate rates with travel suppliers and track expenses to optimize your budget. Think of it as having a travel connoisseur in your corner!
Business travel can come with risks, especially for international travel which saw a massive decline during COVID (78.8% drop in U.S. business tourist arrivals from overseas in 2020).
An excellent corporate travel management program provides features like real-time traveler tracking, emergency response services, and travel advice to keep your employees safe. Imagine your employees getting stranded due to some outbreak in the future–a CTM program can help locate them and arrange assistance.
CTM programs help ensure employees follow your travel policy and provide clear reports on travel spend, allowing you to identify cost-saving opportunities.
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Now that you're armed with this knowledge, you can implement a CTM program and transform your business travel experience. Here are some next steps:
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A travel expense management software is the unsung hero of your CTM program. It goes beyond simply tracking receipts–it's a powerful tool that helps you develop, implement, and enforce your travel policy. Here's how:
Corporate Travel Management programs are fantastic, but they're like a luxury car without an engine. They save you money, streamline processes, and prioritize employee safety, but for peak performance, you need a travel and expense management software.
That’s where Fyle comes in. Fyle automates receipt collection, expense report submission, expense reimbursements, enforces travel policies and provides valuable spending insights.
The result? Streamlined processes, optimized costs, and happy employees.
Ready to take your CTM program to the next level? See Fyle in action! Sign up for a demo today and experience the future of business travel.
