Business travel is inevitable if you wish to expand your business across geographical boundaries. It allows your employees to plan face-to-face interactions with prospects or lets you attend trade events. Choosing between managed and unmanaged business travel options is crucial because it will create a robust platform for the corporate travel policy. Optimization of corporate travel is essential as it consumes much of your company’s budget besides salaries. Companies can streamline business travel and improve ROI using advanced travel management software solutions.
What is unmanaged business travel?
Employees control the travel booking process, like contacting travel agents, negotiating rates, and booking in the unmanaged business travel scenario. Companies adopting this type business travel often lack travel policy compliance and cannot control travel expenditures. Companies must rely on employees to save business travel costs in this business travel option.
Benefits of unmanaged business travel
Unmanaged business travel relies on travel agents to recommend suitable travel options.
1. Direct access to travel suppliers
Employees can choose agents for their travel booking requirements in business travel. They can communicate directly with travel suppliers to resolve queries by avoiding third-party involvement.
2. Cost saving
Companies save costs of hiring Travel Management Companies by implementing this type of business travel.
3. Flexibility
Employees need not adhere to fixed itineraries as this type of business travel allows them to change travel plans as per needs.
Drawbacks of unmanaged business travel
Unmanaged business travel enables employees the flexibility to plan their business travel. It has several disadvantages, such as:
1. Lack of data insights
Unmanaged business travel makes it hard for the finance department to gain crucial data insights like tracking travel expenses for particular travel routes, travel costs analysis for employees, and data consolidation.
2. Non-compliance with travel policy guidelines
Companies depend upon total compliance with travel policy for saving costs and streamlining expense reimbursements. It involves the potential for non-compliance in the absence of travel management software.
3. Non-compliance of Duty of Care
Because of the lack of risk management in business travel, companies cannot fulfill their Duty of Care obligations. The absence of emergency communication solutions impacts Duty of Care, as employees may not receive threat alerts in time for proactive action.
What is managed business travel?
Companies outsource all aspects of business travel to a professional travel management company (TMC), including flight ticket booking, accommodation, and local transport in this type of business travel. Employees, travel managers, and other stakeholders can access the travel management platform to make bookings and receive alerts with updates about the various aspects of the journey.
Companies can effectively implement their corporate travel policy as the platform allows seamless integration in business travel. Managed business travel improves employee satisfaction because they enjoy the freedom of booking their travel and accommodation to suit their choice of airlines and hotels without deviating from the travel policy.
Benefits of managed business travel
Switching to a managed business travel can transform corporate travel because of multiple benefits, such as:
1. Access to a unified portal
Business travel empowers employees, travel managers, and finance teams with round-the-clock access to a centralized platform through an app. Employees can book journeys, receive updates, and access emergency services while on the go. The platform enables expense reporting and helps the accounts department track real-time travel spending.
2. Travel policy adoption
This type of business travel enables companies to create and implement travel policies effectively. A corporate travel policy is crucial for controlling travel expenditure and streamlining the travel booking process for better productivity.
3. Professional travel management
Travel managers can leverage the vast domain experience of Travel Management Companies (TMCs) by adopting a managed business travel program. TMCs enable companies access to local and regional LCCs and leading Global Distribution Systems to achieve cost-effective travel bookings.
4. Higher efficiency
This kind of business travel saves time by improving employee efficiency and productivity as the travel management platform takes care of all travel booking activities. It ensures adherence to travel guidelines of the company, mitigating non-compliance to travel policy.
5. Duty of Care
Companies can effectively meet Duty of Care obligations as Travel Management programs like Paxes provide availability of round-the-clock emergency help, and frequent updates about threats.
Drawbacks of managed business travel
The option of managed business travel has a few disadvantages. These are:
1. The reluctance of employees
Resistance to rules is a natural tendency of most employees who may not adhere to the travel guidelines in a business travel environment. A steep learning curve may impact the adoption of an online travel management platform.
2. Cost of managed travel
Managed business travel involves multiple touch points and stake holders. Hence, companies may find this kind of business travel solution to be a costly proposition.
How does unmanaged business travel differ from managed travel?
Managed business travel is a centralized approach whereas unmanaged business travel is a decentralized approach where employees have the freedom to manage the expenses and itineraries. Unmanaged travel doesn’t have any travel policy to follow, however, managed travel programs have to strictly comply with the policy.
Key responsibilities of travelers in unmanaged business travel
In unmanaged business travel, the traveler is responsible for booking and planning the trip, travel policy adherence, expense management, reporting, travel documentation, and communications.
Conclusion
Unmanaged business travel results in bottlenecks, as employees need to wait for approvals or experience delays in expense reimbursements. Allowing employees to plan business travel can derail the travel policy. Using travel management solutions like Paxes helps companies adopt managed business travel with no hassles. The user-friendly software platform allows using an app to enhance employee satisfaction and compliance with corporate travel policy.
Suggested Read: What Are The Different Types Of Corporate Travel
Unmanaged Business Travel FAQs
How does a managed business travel improve employee productivity?
Employees must invest a long time in booking travel in unmanaged business travel. It diverts their focus from business activities during business travel, impacting productivity. Managed business travel brings relief to employees as Travel Management Companies handle all travel booking activities.
When should a company adopt unmanaged business travel?
Unmanaged business travel is helpful if only a couple of employees need to undertake business travel.
What is the role of a Travel Management Company?
A Travel Management Company or a TMC looks after the entire travel management of a company to save travel expenditure and time.
Why is travel management essential?
Travel management streamlines corporate travel by improving compliance with travel policy. It saves travel costs by optimizing travel requirements and improving the business travel output.
How is a Travel Management Company different from a travel agency?
Travel Management Company leverages advanced technology to track travel and implement business travel by adhering to travel policy. The TMC manages the entire business travel process, from itinerary preparation to expense reimbursement. A travel agency looks after travel booking to facilitate business travel.
How can I book flights for unmanaged business travel?
Travelers can book flights through online booking systems or the website of airlines.
How do I find and book accommodation for unmanaged business travel?
There are multiple consumer platforms where the traveler can find a variety of accommodation options. They can choose the most suitable one for themselves.
What are some safety tips for travelers in unmanaged business travel?
The traveler must be aware of all the scams and frauds while booking his travel services, They must make their bookings through a reliable source to avoid any inconvenience during the travel. They must be well-versed with the destination’s travel system and culture to quickly adapt there.
