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8 ways a travel management company provides long-term ROI

By 3 December 2015March 3rd, 2022News

A reputable travel management company’s primary goal is a simple one – to deliver cost savings as part of a tailored strategy designed to provide you with long-term ROI.

Here’s 8 ways they do it:

  1. Duty of CTravel Management Companyare management

Rapid development in the Asia-Pacific markets has resulted in an increase in international business travel.

And as the number of travellers has increased, so has associated risks. In 2012, new Federal work health and safety laws were passed, making it a criminal offence for employers to neglect their Duty of Care obligations regardless of traveller location.

The associated risks of business travel can come in the guise of common flight delays to serious incidents such as car accidents, civil unrest and exposure to disease. By failing to uphold your Duty of Care obligations, you risk hefty fines and potential criminal charges.

Ensuring your Duty of Care obligations are upheld is both a matter of principle, and smart business practice. From real time alerts, fail-safe contingency plans, to fully integrated and customised solutions that work within your company’s security risk framework, a travel management company will provide you with long-term, genuine value by your investing in the safety of your people.

  1. Reporting data

A travel management company’s reporting data is the most complete set of data a company can obtain, providing visibility of travel spend and helping your travel management company to analyse and reduce travel costs – potentially saving you over 20% in overall travel expenses.

Working in partnership with you, a travel management company will develop a measurable travel program that identifies trends, improves your bottom line, and through effective data reporting, continues to ensure you fulfill your Duty of Care obligations.

  1. Policy compliance

Compliance with policy is essential to ensure your travel program isn’t abused. A travel management company will consider compliance across the following areas:

  • Booking behaviour – including booking channels and advance booking.
  • Preferred supplier adherence.
  • Traveller safety.

A reputable travel management company will proactively implement a tailored solution for your travel needs, and via expert behavioural management and comprehensive data reporting, ensure that policy compliance is upheld.

  1. Leading technology optimised for 24/7 accessibility

Efficient solutions optimised for easy anywhere, anytime access reduces both valuable time – often wasted in the area of admin, and cuts costs.

Travel management companies have access to market leading technology, helping them to design innovative solutions for your corporate travel needs that can provide real-time reporting and emergency support.

This technology may include anything from apps to portals that provide central access to senior management for better travel monitoring, management and communication with your travellers.

  1. Behavioural management

This involves understanding traveller’s buying patterns and proactively managing, or ‘influencing’ their behaviour to deliver improved cost-outcomes for your company.

By understanding your traveller’s decisions, a travel management company can effectively ensure greater return on your ROI by helping you maximise your budget and cut costs across anything from ancillary expenses to flight fares.

  1. Supplier optimisation

Whilst booking independently may be a ‘quick fix’, travel management companies simply know and understand higher value options.

By this we mean – as tempting as a once off discount on accommodation or airfares may be, booking with a contracted supplier as part of a travel management company’s travel management solution provides your company with sustained value over the long-term.

  1. Identifying blind spend

Untracked blind spend will costs you thousands over the long-term, primarily from missed volume discounts from suppliers. It also weakens your negotiating power, impacting your ability to access future discount rates.

Furthermore, booking directly with suppliers increases the potential financial ramifications associated with neglecting your Duty of Care obligations.

By consolidating your spend via a travel management company, you can effectively leverage volume discounts with your suppliers, which equates to greater value over the long-term.

  1. Expertise in travel management

Travel management companies know the real benefit of implementing a clear travel policy designed for long-term value for the body of your company.

AT CT Connections, we have a wealth of knowledge experts and travel managers trained in managing corporate travel with the primary goal of delivering cost-savings.

Booking turnaround, expert service levels, intuitive and innovative reporting tools, employee engagement and education, aligned suppliers and the ability to control your budget through negotiating power, reporting data, policy development and behavioural management are just some of the benefits a travel management company can bring to your company.

Let’s have a conversation about your needs – connect with us today.