Organizations are increasingly exploring managed vs unmanaged travel programs. As they do, Travel Managers should weigh the full range of managed travel program benefits before making a shift.

Travel Managers and Executives have more options than ever when it comes to managing organizational travel. There’s the self-managed route, tech-first models and ultra-flexible approaches, in addition to, of course, a more traditional corporate travel program.

If you’re currently weighing the pros and cons of each avenue, it’s vital not to overlook the many managed travel program benefits, particularly in environments where structure, Traveler service and oversight are critical.

Here’s what you need to know about the value of managed travel programs, how to understand when and where structured programs are the best fit and how to continue to evolve with your Travelers’ modern needs.

Key Takeaways 

• Travelers and Travel Managers increasingly feel dissatisfied with the status quo of travel programs. They are turning to independent booking and flexible options as a result.
• The right managed travel program will provide benefits such as greater visibility, greater Traveler satisfaction, cost savings and a higher level of Duty of Care
• Self-managed approaches to travel create gaps in budgets, vendor leverage and data visibility.
• Modern TMCs blend technology and flexibility with control.

What’s Changing and Why Structure is Being Reconsidered

A study earlier in the year surveyed more than a hundred Travel Managers across the United Kingdom and Europe. It found that, currently, simplification is a priority within travel management. More than half of respondents said that simplifying “clunky” travel management workflows was key in the year ahead. Forty-four percent described their travel programs as inefficient. Other areas of dissatisfaction included the inability to properly access or utilize travel data, and limited access to travel inventory, particularly travel inventory at an agreeable cost.

Combined with the ongoing desire from Travelers for booking experiences more similar to those they see when booking personal travel, it’s no surprise that Travel Managers are reconsidering program structure. They’re looking at self-managed travel programs, more tech-first platforms and more flexible policies, all with the aim of improving autonomy and the Traveler experience. 

However, not all organizations benefit equally from such less-structured models. Travel Managers must strike a careful balance of flexibility and control.

Where Managed Travel Program Benefits Still Deliver Value

Despite all the recent changes and demand for something new, traditional business travel program benefits still exist, and before making a significant move to a new, more flexible approach, it’s important for Travel Managers to analyze these benefits and the degree to which they impact their Travelers.

For example, using a centralized booking system and consistent travel policies improves Traveler visibility, benefiting the organization in multiple ways. Budgets, Duty of Care and compliance may all improve. 

Further along these lines, consolidated spending can support supplier negotiations and cost control. As for Travelers, they’ll enjoy a higher level of service when working with an experienced Travel Management Company (TMC) for advisor support.

All of these elements combine to support overall program performance. 

And if you need any further reasons to invest in managed business travel? Just take a look at a recent Global Business Travel Association study. It found that, for every 1% increase in managed travel spending, an organization will see a 0.20% increase in revenue. On a broader scale, the study claimed that “U.S. companies that take a strategic, well-governed approach to their business travel programs can achieve up to 30% higher revenue than their peers.”

Where Flexible and Self-Managed Models Can Create Gaps

Meanwhile, opting for flexible or in-house models for a business travel management program can lead to gaps that are easy to overlook at first—but that quickly result in detrimental effects.

For instance, when switching to these models, suddenly Travel Managers are dealing with reduced visibility into Traveler activity. Fragmented booking behaviors can lead to a lack of compliance, insufficient Duty of Care and quickly ballooning costs. Without consistent booking behaviors, Travel Managers lose potential supplier leverage, which further negatively impacts organizations’ travel budgets.  

What “Traditional” Looks Like Today

All of the above said, though, going with a traditional managed travel program doesn’t mean that your program will be outdated or less than ideal. Today’s traditional program looks far different from what it might have even a decade or two ago. Travel management companies continue to evolve and adapt to the ever-changing world of business travel, to better serve both Travelers and their organizations. This might look like using advanced booking platforms, providing expanded travel content and/or automated systems. Similarly, TMC policy frameworks are more configurable and adaptable to uniquely fit teams’ needs. 

Now, structure and technology can work together, rather than independently, benefitting everyone.

How to Choose the Right Model

So, how does a Travel Manager choose the right model for their traveling teams? Do you go with a TMC and all the managed travel program benefits, or do you opt for in-house management and a DIY approach? 

First, consider your own internal resources and your program’s maturity. This is especially important for those considering in-house travel management, as some may underestimate the internal resources that they’ll need. 

Next, evaluate your travel volume and complexity. Again, the greater the volume and complexity, the more internal resources are required. Likewise, assess your organizational risk tolerance and Duty of Care needs. 

Then, determine how you want to balance flexibility and consistency, and when and how you want to weigh in favor of one or the other. 

Closing Perspective

The many managed travel program benefits mean that organizations continue to opt for managed travel, even with changing travel landscapes. The structure, service and oversight that these programs provide make them a critical foundation for Travel Managers and Travelers alike. Additionally, these programs have not remained stagnant. They continue to evolve to meet contemporary needs while never losing sight of the core benefits they’ve always provided. 

Explore the full range of perspectives regarding corporate travel programs, how they’re shifting and the various options now available to Travel Managers, in our Rethinking Corporate Travel Program series. 

Northstar Travel Group is a JTB Corp company. JTB Business Travel may reference reporting or research published by Northstar; however, all commentary and recommendations in this article are independently developed.