Travel Management in transition
10 challenges and solutions for modern business travel
As business travel evolves, travel managers are increasingly feeling the pressure. 47 % say their jobs are more stressful compared to last year – and 99 % expect their jobs to become more challenging in the next 12 months.[1]
1 2023 SAP Concur Global Business Travel Managers Report | Concur
Why is that?
There’s the issue of rising travel costs. The fact that travelers are expecting a more “consumer-type” experience. Sustainability targets. And, of course, the continuous emergence of new
technologies to contend with. The modern travel landscape is at a point of transition, and the changes seem to keep coming.
There’s no doubt: The need for an adaptive and agile approach is now more crucial than ever. But how do you keep your travel program afloat amidst the rocky seas of
modern business travel?
- You want to tighten up travel policies, without a battle to ensure compliance.
- You want to make cost-effective business choices, but without payment data visibility you’re coming up short..
- You want to deliver more environmentally friendly travel options, but you have no clear way to measure
progress.
And that's just a small snapshot.
With all that in mind, we’ve brought together 10 key challenges faced by travel managers across the globe – and solutions to help you overcome them.
10 key challenges faced in travel management
Challenge #1: Cost control and transparency
With the current economic landscape, costs are now under greater scrutiny.
Prices are rising and budgets are tightening, which means that better spend control, cost reduction and improved cash flow are no longer ‘nice-to-haves’.
But there’s a problem: A lack of visibility over payment data. Not only is it impossible to get true control over costs, but it’s even more challenging to stay within budget.
And balancing these financial pressures while ensuring a quality traveler experience? That’s no easy feat.
The solution
Better access to quality data
In the modern corporate world, data is power.
You need quality data and reporting to make informed business decisions. And by partnering with a modern, smart payment provider, you’ll get the comprehensive expense tracking and
reporting you’re looking for, including:
- Insight into supplier performance, so you can identify areas for cost savings and negotiation.
- Full transparency and control over your business travel spend.
- Expert advice and smarter strategies to optimize your cash flow.
- Direct ownership of your data and ultimate control over how your data is used.
Challenge #2: Travel policy compliance
For travel managers – especially those in large organizations – enforcing travel policy compliance can prove problematic.
The main problem lies in lack of transparency over bookings. If you don’t have the right visibility, how can you ensure that employees are complying with rules and regulations?
You also want every traveler to be happy with their policy. But you’re facing diverse travel preferences, limited budgets, and ever-changing industry standards, which makes it tough to meet expectations and factor in restrictions.
The solution
Senior management buy-in
Top-level approval from senior staff gives you the solid support you need. It ensures that the policies are promoted from the top, making travelers more likely to adhere to their policy.
Build policies into your booking systems
For full visibility over policies, you need centralized booking and payment systems. You’ll not only get the control you need, but you’ll also be able to tailor booking options for each individual traveler to manage employee expectations. A clear booking and approval process makes it easier for employees to stay within policy and easier for you to spot any policy violations.
Promote a culture of cost consciousness
Communication is key. Make sure that you educate employees regularly on policy changes, promoting a positive culture of cost consciousness as you go. You could also consider hosting ‘vendor information events’ for your employees. These types of events can help employees make informed decisions and nurture the value of travel-related vendor relationships.
Challenge #3: Traveler security
A recent report by CMAC found that a third of survey respondents feel their employers don’t prioritize their safety on their business travels.[2]
But in the unpredictable world of business travel, delivering a duty of care is crucial. To do so, you need to keep up to date with travel advice for every global destination. Although, with world events such as increasing bouts of severe weather and travel strikes, this can make duty of care more complex. There is also the issue of fraud to address and, considering one in six business travelers (17 percent) have fallen victim to credit card fraud, it makes secure payments a major priority.[3]
2. Business Travel Managers Report | CMACGroup
3. Business travellers face credit card fraud risk | Business Travel News Europe
The solution
Put a solid crisis plan in place
- Create (and communicate) a strategy for when a crisis occurs. A good way to deliver this is via digital safety booklets that your employees can easily access before, during, and after their trip.
- Partner with a risk management company who can help you find the best solutions for your business.
- Work with your HR department to make sure employee emergency contacts are up to date.
Provide complete coverage
For total peace of mind when traveling, provide employees with the right travel insurance. Partnering with a modern payment provider means your employees will get comprehensive all-round cover when traveling. Make sure to tell them the details of the cover before they travel so they can relax, knowing they’re looked after.
Introduce a secure payment method
Your payment provider can help you manage fraud. With features such as instant alerts, real-time monitoring, and secure authentication methods, you can address potential threats quickly while maximizing security and minimizing the risk of financial loss.
Challenge #4: Vendor Management
Successful vendor relationships are essential for negotiating the best rates, deals, and contracts – but it can be a complex business.
The main problem lies in lack of transparency over bookings. If you don’t have the right visibility, how can you ensure that employees are complying with rules and regulations?
You need to be strategic when it comes to choosing your suppliers. But without the right visibility over costs and performance, you can’t master the delicate balance between quality and value.
The solution
Regular performance reviews
Use your travel booking data to get a picture of vendor performance and costs. For ease, choose a payment provider that showcases your data in a single monthly report, with details such as KPIs per supplier, spend analysis, and trends over time. This way, you’ll have a better grasp on your supply chain and easily identify terms of negotiation.
Vendor management plan
Putting a comprehensive plan in place will help you strategically select vendor partners. Start off by identifying your business needs and setting clear expectations: Is your prospective vendor in line with your sustainability initiatives? Does your existing vendor still offer competitive prices? A payment provider can bring advanced data analytics to your business, complete with automated alerts that notify you of events such as price increases or a sudden decline in service quality.
Challenge #5: Technology integration
Sure, waving goodbye to time-consuming processes and ramping up efficiency sounds like a dream.
But with numerous existing tools and systems at work, you need any new technology to integrate smoothly – or you may end up bringing more hassle to an already inefficient process.
The solution
Choose vendors wisely
Only work with vendors that can integrate well with your existing systems. The right payment provider should be able to so. To give you a head start, take a look at who your current systems certify. This will ensure easy integration and minimize any potential problems in the future.
Centralize your payment system
Want the smoothest-running travel program possible?
With centralized travel management and payment systems, you’ll be able to do things like:
- Access travel updates in real time
- Make instant travel amendments
- Complete expense forms at the touch of a button
- Manage cost control like setting spending limits
- Implement robust security features and fraud detection
Challenge #6: Driving meaningful sustainability
Sustainability: the buzzword of the moment. And the pressure is on.
In fact, 61 % of business travelers revealed that meeting sustainability targets is now a growing concern for 2023 and beyond.4 Poor quality data and analytics is making accurate carbon emission reporting difficult, and obtaining a true picture of environmental impact even harder.
There’s also an ongoing struggle to meet ESG (Environmental, Social and Governance) requirements, especially as it’s now a huge part of the drive towards more sustainable travel. But it’s not just the lack of data that’s posing a problem. The rise in travel due to in-person work events, plus the challenge to source suppliers that are eco-friendly and within budget are proving a challenge.
The solution
Educate your employees
24 % of business travelers would decline a trip assigned to them if it required using non-sustainable travel options.[5]
Your travelers want to make more sustainable choices too, so be sure to encourage your employees by making a point of regularly setting (and reviewing) your sustainability goals.
Choose like-minded suppliers
Eco-friendly suppliers that align with your ESG goals ensure that you’re sourcing responsibly, upholding your company ethos, and promoting responsible business travel.
A sustainable-minded payment partner can provide you with monthly ‘green reports’ that calculate the carbon footprint of your business travel. This visually demonstrates the impact clearly and powerfully for all stakeholders.
Challenge #7: Poor data quality
Poor or incomplete data is one of the biggest setbacks you’re likely facing.
Poor data quality means:
- Wasted time and resources on expense reconciliation
- Lost cost control
- Missed opportunities for supplier negotiation
- Higher likelihood of reporting errors
- Effective planning becomes impossible
The solution
Automated reporting and reconciliation
A modern payment provider will integrate an expense reporting system that works best for your business.
You’ll be able to:
- Track your key data and present it on an easy-to-use dashboard that benefits stakeholders company-wide.
- Centralize your payment system so you can eliminate time, money, and stress wasted on approvals and reconciliation.
- Automatically reconcile your payment data with key company data so your data is all in one place for optimal decision making.
- Benefit from a customizable, electronic invoice to streamline your reporting and optimize budgeting decisions.
Challenge #8: Keeping travelers happy
Employees are expecting a more ‘consumer-type’ experience from their business trips.
They want ease. Options. Simplicity.
But balancing this traveler experience with your budget can be tricky, especially in a constantly changing consumer market. As a travel manager, it’s vital you understand your business travelers’ needs. By doing so, you’ll have the knowledge you need to maximize employee well-being in an increasingly competitive landscape – and keep the best in the business.
The solution
Partner-up for powerful data
Bring a payment provider on board for better data and spend reporting. Then use your new insights to negotiate better rates and upgraded experiences.
You can offer employees a range of travel options, giving them an element of control over their bookings, whilst remaining within budget.
Conduct traveler surveys
Surveys are the best way to get constructive feedback and a clear view on how to drive customer satisfaction.
Plus, bringing your traveler into the process makes them feel part of policy decisions and updates, resulting in less resistance in the future.
Supplier days
If you’re not holding vendor days, then you’re missing a trick.
They’re the perfect chance for employees and vendors to mix and meet face-to-face. They not only have a positive impact on your supplier network, but are also a platform for building connections and meaningful relationships.
Challenge #9: International travel
You want your employees’ international travel to be seamless.
This isn’t always easy – especially when you factor in different visa requirements, currency exchange and, of course, varying travel regulations. Equipping your travelers with everything they need can seem like an impossible mountain to climb.
The solution
Provide cultural awareness training
Navigating a new culture can be a little daunting, even for the most seasoned business traveler.
Cultural awareness training helps promote respectful interactions, reduce misunderstandings, and enhance safety, ultimately giving your traveler the confidence they need for the road ahead.
Keep up-to-date on regulations
A payment provider will keep you in the loop on international regulations using real-time alerts. It’s essential that you choose a payment provider who has a global footprint, as they’ll be able to manage multiple currencies and ensure acceptance across the world.
They should also have the experience and connections to give you a competitive exchange rate.
Challenge #10: Travel policy changes
Making sure that travel policies are up-to-date is essential for minimizing potential risks and unnecessary expenses.
The pandemic was a major driver – and perfect example – of an urgent need to adapt travel policies. But you’ve also got to ensure legal compliance, keep control of costs, promote employee wellbeing and, make sure that all the ever-emerging technologies are integrated.
The solution
Establish a dedicated team
Don’t risk your policies being out of date. Put a dedicated team in place to monitor things like travel trends and regulations, updating policies as needed, and communicating all changes to employees.
Lean on your payment partner
With an expert payment provider, you can always rely on their expertise to ensure policies and procedures
Smart solutions for your common challenges
There you have it: Solutions that employees working in travel management need for a thriving travel program.
Key takeaways:
As the landscape of modern business travel continues to change, travel managers need the right strategies in place to combat the challenges thrown their way.
The right payment provider partner can:
- Give you high-quality data for better cost control and informed business decisions.
- Keep you in the loop with international and national travel advice and regulations.
- Provide easy expense reporting and automated reconciliation to save you time, money, and stress.
- Help you manage long-term successful vendor relationships, identifying areas for cost savings and opportunities.
- Seamlessly integrate modern technology with your existing systems (even in-house technologies).
- Centralize your payment systems for total transparency and control over payments.