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Poor corporate travel management can impact businesses in many ways - from missed bookings to higher costs, and even compliance issues. Therefore, it’s important to know the risks that you can face when working with a young or mismanaged corporate travel company so that you can know what precautions to take. Otherwise, the costs can be downright detrimental to your business.

 

Increased Expenditure

The first and most obvious result of bad corporate travel management are higher costs - more money spent as a result of mishandled bookings or lack of reporting. As the second largest controllable expense for most companies, travel spend should be easily trackable to keep employees from going off budget. How’s money being spent? Who’s spending it? Are any losses occurring that are the cause of missed flights or extended stays? These are all questions that you want to consider, and ensure your corporate travel management company can report on, so you can make business and travel decisions accordingly.

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Compliance Risks

Travel companies who don’t use expense reporting software are much more likely to cause a myriad of problems for travellers and business clients than those who do. For example, frequent travellers who must submit detailed expense reports might be more inclined to rush through them and not fill out all costs, thereby putting the business at compliance risk. To prevent this, look for a company that has or integrates with expense management tools that make it easier to streamline reporting operations. That way employees will be better able to submit their receipts and bills on the go, and administrators can approve and reimburse them faster.

 

Lack of Traveller Safety

Ensuring that business travellers are safe on their trips is largely both the organisation and corporate travel management company’s responsibilities. According to Security Magazine, 24% of people admit to regularly booking business travel outside of the organisation’s chosen system. More alarming than this is that 15% of those same respondents said that their companies often don’t know where they are 100% of the time while away on business. In the cause of an emergency, that would make it difficult, if not impossible, to retrieve missing travellers, putting both the employee and company at significant risk.

In a similar survey, 42% of respondents submit their claims through an automated expense management tool, whereas the rest use Microsoft Excel spreadsheets, handwritten forms, or emails instead. However, standard forms of cost reporting like these is inefficient and can lead to other errors. In fact, “Employers that switch from manual claims processing to the use of automated tools benefit through reduced errors, better fiscal compliance, improved VAT reclaims and a fast approval workflow system for line managers,” says Forbes.

Therefore, businesses who want to ensure that trips run smooth, expenses are well-managed, and employees adhere to travel policies, should work with corporate travel companies who have the right processes and tools in place. Otherwise, you’ll end up wasting more money, facing greater risks, and providing a bad experience for your business and your travellers.

Is your business spending too much on corporate travel? Calculate your potential savings using our Travel Savings Calculator below:

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