Why Outsource Business Travel Management?

Sharing is caring

It can be challenging for procurement specialists and travel managers to stay up with changes in the corporate travel sector and guarantee that their program is operating at peak efficiency. Sometimes they simply lack the bandwidth or the resources to dedicate to the trip. A functional program but not at all tuned for peak performance is the normal outcome. Outsourcing business travel management USA to an established travel agency/travel management company is one way to cut costs while enhancing program success and bring in efficiency on business travel management platform and ensure employee safety on business trips.

What is the Work of an Outsourced Travel Manager (OTM)?

In your program, outsourced travel managers work to streamline procedures, roll out newer services, process controls, oversee compliance, cultivate business ties with suppliers, negotiate better on company’s behalf and raise traveler satisfaction. OTMs can manage the entire program, oversee initiatives for traveler engagement, function as the internal point of contact for travelers and develop and implement a travel plan.

The bottom line is that an OTM’s job varies depending on the firm’s or corporate client needs. One shoe does not fit all. Instead, it’s important to guarantee that the company’s specific demands are met by the travel policy and program and that it achieves organizational objectives.

When Outsourcing Should Be an Option

There are several circumstances in which outsourcing the management of your business travel program could make sense, even while it is not a silver bullet for every corporation.

For instance, outsourcing business travel could be the answer if you need to benefit from industry experience but lack access to individuals with a background in corporate travel or the time to manage a program in-house. A travel manager without subject matter expertise might not have the depth of knowledge necessary to stay up with this rapidly changing market.

Additionally, outsourcing your business travel management USA will save you time. Many travel managers have other obligations in addition to travel. It can be challenging to plan and manage a program, including travelers, control travel policies, deliver savings, and do other things. Employees in other functional areas won’t have to interrupt their workdays to run the program because outsourcing can guarantee that someone can devote the appropriate amount of time to these responsibilities.

It is important to remember that outsourcing business travel management may not always be the best option. Bookings, for instance, can probably be handled internally by a small business where staff only take a few trips a year because it doesn’t take up a lot of time and has a minimal financial impact.

However, outsourcing business travel management may be the solution if a program isn’t doing as well as it should or your business is growing regionally/internationally and you need to keep a track on overall spend and compliance. Travel industry professionals can manage the program, generate savings, and engage travelers more quickly and effectively.

Reducing Risk

Employees frequently make their own travel arrangements in companies without travel supervisors. This could lead to a significant duty of care concern. There is a safety concern when passengers purchase flights or hotels without knowing what they are doing. Sometimes employees book  Additionally, you almost surely overpay for both travel and lodging and receive little to no insight into other travelers’ experiences. Did they travel successfully? Was the hotel they reserved near the place of business? Did it come with breakfast or wifi? Without these kinds of insights, you’re not taking advantage of important data that may be used to enhance program effectiveness.

This is much more crucial in a big company with lots of travelers. You can’t afford to leave travel-related issues to chance at that stage because internal travel management can grow into a significant, cumbersome undertaking. Without the hassle of managing it internally, outsourcing may minimize risk and bring security, savings, and peace of mind.

What an OTM Brings To Your Travel Program

Your business travel management program and the company will gain from having an Outsourced Travel Manager on board in various ways. After serving as travel brokers, account managers, in-house travel managers, and other positions, many OTMs have extensive industry experience. One key advantage of outsourcing is tapping into decades of industry experience without building it up gradually.

Your travel program will incur less overhead if you hire an OTM. The cost of one FTE employee frequently includes the work of two or three workers. This is crucial for a company that isn’t primarily concerned with travel.

Your OTM may also assist you in improving travel rules, processes, performance, and supplier agreements so that your travel program fits the objectives of your organization. These resources include industry data and relationships. OTMs can regularly analyze the data from your program and make changes as needed. By doing so, you may promptly take action if suppliers and partners aren’t fulfilling their obligations under the terms and tariffs they committed to, saving you money.

Finally, an Outsource Business Travel Management can create and manage traveler engagement programs, enabling the business to keep travel regulations top-of-mind, alert staff on significant changes to travel, and even affect how they make travel arrangements. By minimizing employee friction and increasing traveler happiness, traveler engagement lowers the cost of staff turnover. Contented employees are also more likely to stick around.

Having an expert in charge of managing the travel program’s role in the broader organizational strategy and goals will result in considerable savings and performance improvements for your travel program in a rapidly evolving sector.