The Big Three
Cost, time and imploding destinations. You might not encounter these issues every time you travel but they are all issues that will impact your company’s bottom line.
Australian companies spend over $21.1 billion on business travel annually. It sounds like a lot but on a list compiled in 2013, we were only 12th on the list of the countries that spent the most on corporate travel. The top three were the United States, China and Japan.
Surprisingly, small to medium businesses spend more on travel than the large corporates. Clearly, there’s a lot more face-to-face business happening between small businesses and their clients and partners.
The cost of business travel, even if it’s just across Australia can be crippling for a small or medium sized company. Corporate travel can rank as high as the third largest controllable line item affecting a company’s profitability.
Booking, co-ordinating, updating and changing travel plans that always seems to happen in the last minute, can become more than a full-time role. Managing this, whilst ensuring you get the best deals, can’t be easy, and ends up draining your employees time, time that could be better spent focusing on your core business.
Further, companies with less than 100 employees can’t always afford to have a member of staff dedicated to sorting out travel arrangements. They may have a particular travel company they always deal with. This might not be the most economical route for them to take, but they don’t have the time to investigate alternatives every time they, or another member of staff travels.
As we all know, life happens, and all those carefully laid plans, flight connections and hotel bookings can be thrown out of whack in a second. It only takes one decision to change everything. That decision could be made by the CEO of the company you’re visiting or the President of the country the company is in. And the last thing you want to do is get stuck in a war-zone that sprung up overnight.
Busy executives don’t have time to phone the office and get everything sorted out, especially if there’s a significant time difference between the executive’s location and that of the home office.
So What’s The Answer?
So much business-to-business interaction can be done via technology these days that any actual face-to-face dealings should be done only when no other scenario will do. CFO’s, travel assistants, procurement officers and PA’s as well as CEO’s need to have strict budgetary guidelines within which to work.
They need to be able to anticipate and handle any changes to the itinerary as quickly, efficiently and cost effectively as possible, leaving you free to focus on the reason behind the journey.
It’s often easier to do things yourself, especially when you find yourself in a situation that requires rapid response solutions.
You need to be able to make travel bookings as well as destination related bookings on the run without running afoul of the travel budget. All this while still staying focused on the reason for taking the trip in the first place.
The Future of Corporate Travel
In July 2014, a study by CWT showed that mobile bookings for business travel are set to soar within the next ten years. This shift will influence not only how corporate travel managers control their company’s travel needs, but the whole travelling experience as well.
The latest mobile technology will help provide support to staff on the go. As always there are those that think it’s just a phase and that it’s actually safer to go through a travel agency. The facts however, say differently.
Mobile bookings will most likely increase dramatically. By 2017, 25 percent of travel bookings will be made via mobile apps. The reason for this is that it is simple. An estimated 62 percent of travellers now carry smartphones. The ease with which business can be done, productivity and the traveller’s wellbeing rank high as key benefits of using mobile devices and apps for corporate travel.
It took about 8 years for online bookings to grow into the business tool it is today. Mobile travel bookings are predicted to more than double over the next two years. And corporate travellers in the Asia Pacific region, including Australia, rank the benefits of mobile travel booking management higher than their North American counterparts. In fact, 62 percent feel it’s critical, especially for companies wanting to connect with more international clients.
That’s Where We Come In
Locomote is a technology company devoted to changing the Australian and international travel management landscape. And how do we do that? By giving business organisations complete control over their global travel programs.
We know one of the most important things that’s needed when making business travel arrangements online is a great user experience. And if you’re the one that has to not only make the arrangements but also handle the business side of the meeting, then you need a great user experience.
That’s even more relevant if you’re doing it on a mobile device. So we created innovative products that will make your corporate travel a whole lot easier. Our products allow companies to manage, authorise and book their travel, from anywhere in the world. On any device.
Our desire was to streamline the corporate business travel experience and give a solid foundation to the travel programs that exist in businesses across Australia and across the globe.
We wanted to make sure that the user experience was one of profound simplicity and yet was also highly reliable and cut down the hassle of trying to deal with multiple technologies. We wanted to create a technology driven solution that would reduce our clients’ internal costs, provide high fidelity data, integrate perfectly with different technological environments, and do it all on a borderless platform for the global travel community.
So we did. And it’s transforming the way people travel.
Is your business spending too much on corporate travel? Calculate your potential savings using our Travel Savings Calculator below: