Corporate Business Travel Management:
What You Need to Know


Are you struggling with corporate travel management?
Make it simple with Deem.


What is Corporate Business Travel Management?

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Corporate business travel management manages all aspects of the travel arrangements for an organization's employees. Contracts with airlines, hotel chains, rental car companies, and other travel services are arranged by the corporate travel management group. Employees must make business travel arrangements through the travel management department. Larger organizations have corporate travel management departments while smaller companies tend to employ travel agents.

Corporate travel policies are formulated by the organization's travel management group in conjunction with the human resources and finance departments. Travel policies are put in place to ensure employees do not spend excessively during business trips. A recent corporate travel policy benchmarking and insight study revealed that a North American company that spends $1,000,000 each year on airline tickets could have reduced costs by 61% with well-designed mandated travel policies.

Major corporations have an annual budget for travel expenses. It is the corporate travel group's role to ensure the total cost of employee travel does not exceed the annual budget. Some travel groups assign a travel budget to each division of the corporation where department managers are responsible for overseeing travel arrangements for their own employees.

A corporate travel management group establishes contracts with airlines and hotel chains to ensure employees can find airfare and lodging regardless of where or when they travel for business. Airlines, hotel chains, rental car companies, and other travel services often give significant discounts to organizations when the corporate travel group agrees to conduct a certain amount of business with them over a period of time.

Employees who travel on overnight trips are normally reimbursed for expenses related to meals and necessities. The corporate travel management group conducts research to determine the cost of meals and other services to establish daily expense limits for employees. Companies only reimburse expenses that do not exceed the daily limit.

Some corporate travel management groups provide employees with corporate credit cards which enable employees to charge expenses directly to the company rather than submit claims for reimbursement. When annual expenses exceed the stated budget, the corporate travel management group is responsible for ensuring employees change or cancel all travel plans for the remainder of the year.

Travel budgets are reviewed annually by the company's corporate travel management group and can be modified based on increasing travel prices or the overall state of the business.

What are the Keys to Successful Corporate Business Travel Management?

When it comes to corporate travel management, most people think cost management is the only factor that matters, but in reality, there are three important aspects organizations need to consider:

 
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The Right Level of Service

Great service creates a travel experience where employees are put in the right place at the right time. Organizations don't necessarily just want the employee to book the cheapest flight. Imagine if an employee booked a cheap flight with multiple layovers that arrived a few minutes prior to an important customer meeting. The employee would obviously feel rushed or tired and most likely not perform at their best. If this was the case, it would have been better for the employee to set up a video conferencing call.

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Efficiency

Efficient processes and tools save organizations a significant amount of resources, whether that be time or money. If employees don't have to scour the internet to find the best deals or read up on company travel policies, the time it takes to book a business trip significantly decreases. This allows them to focus on more important items related to their job. Good corporate travel management software or processes save up to 20% in direct travel costs and up to 65% in indirect costs for each travel expense report.

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Cost Reduction

The average per diem for business travel is now $325 a day and $1,425 per trip! Is airfare and hotel lodging really that expensive or are your employees splurging on things they shouldn't be? Travel policies integrated into easy to use software help organizations reduce travel costs by ensuring employees aren't exceeding daily travel budgets or booking outside of travel policies.

When it comes to corporate travel management, most corporations are really just looking for efficient processes. They want integrated solutions that operate easily with travel management companies, work with the company's systems (i.e. ERP), and widely used by their employees.

How Can Deem Help?

Deem has helped over 50,000 corporate customers save millions of dollars in travel costs each year.

Deem Work Fource transforms corporate travel with predictive and personalized solutions designed to streamline every aspect of the corporate travel booking journey. Employees can easily book and manage their travel while complying with the company's travel policies, preferred suppliers, and negotiated rates.

Deem Work Fource

Deem consolidates inventory from global sources so your employees don't need to scour the web to find the best deal. Employee managers can see and approve bookings instantly. Users can log and monitor every expense on Deem using their mobile devices while on the trip to ensure accurate expense reports. Deem is making corporate travel management easy.


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"Our employees find Deem easier and more reliable than our previous provider. It has minimal down time and actual responsiveness from customer support. The direct integration of our corporate cards is also a nice addition that we could never get to work with the other guy."

-Jeff Froetschel, Accounting Manager, VeriCheck Technical Services


Are you struggling with corporate travel management?
Make it simple with Deem.