Foundations of an Effective Business Travel Management

Foundations of an Effective Business Travel Management

Business travel management refers to the premeditated management of an organization’s approach to business travel. This includes vendor negotiations, daily operation of the organization’s business travel program, safety, and security in the air and on the ground. While it also includes travel-related expenses and appropriate management.

An all-inclusive travel management program plans to integrate and fulfill the requirements of various stakeholders. While TMCs can cater to the basic daily travel services to corporates, other crucial aspects also need to be considered.

Employees: It plays a role in keeping them safe and productive on business travel. It also arms them to make necessary choices through the incorporation of relevant information.

Travel admins: It focuses on advising them on how to optimize the corporate travel program. All through with the help of in-depth analysis of travel spends and traveler behavior.

C-suite executives: It assures that the business travel program supports organizational objectives, all by empowering them to focus on their core business.

There are four key pillars that keep up a good business travel management program.

  • Assuring safety of employees
  • Raising cost-effectiveness of the business travel program
  • Increasing productivity of employees in business travel
  • Increasing transparency within the organization

It is of utmost importance to consider each of these pillars while picking a travel management solution. The successful corporate travel management program is based on the following four pillars:


Safeguarding employee safety during corporate travel is the top concern for most of the companies. Irrespective of the sector they operate in or the scale of their operations. Growth in business travel volumes changes due to several factors like climatic changes, natural disasters, terrorist activities, accidents, political unrest, etc. These factors have created a high need for companies to have a comprehensive and structured safety program for business travel.

As safety in travel gains momentum, business travel admins are well-positioned to fill travel policy gaps. They also prepare their companies for future safety challenges. Pre-emptive initiatives to facilitate employees like safety training, pre-trip documents, and more can drill a sense of security in employees. This may, in turn, result in increased productivity and loyalty among employees, thereby boosting the business.

Role of companies in Duty of Care

This addresses the moral and legal responsibilities of employers towards their employees in maintaining their well-being, security, and safety during travel. This concept has evolved over the decades, with growing relevance in business travel.

As companies expand and explore new geographies, ‘Duty of Care’ has become a significant component of any corporate travel program. Under this, employers have the responsibility to implement appropriate travel policies and risk management to protect their employees from possible harm.

Role of Companies in Duty of Care

Travel Risk Management

A travel risk management program is a well-rehearsed plan that provides Duty of Care to employees. Various situations can arise while employees are on their business trips, ranging from natural disasters to civic unrest. A robust travel risk management program properly equips employees to handle such situations and complete their travel safely. It does not eliminate risks; it highlights them and mitigates them to some extent.

For a practical travel safety course, all aspects of travel risks, how to mitigate them, and how to react if they do happen must be understood by employers and conveyed to all employees.

As the number of women travelers in business increases, there are necessary adjustments that need to be made to travel policies. This in terms of safety and also to accommodate their needs. Currently, 71% of female business travelers believe that they face higher safety risks than their male counterparts.

With these growing safety concerns, organizations need to revamp travel policies to ensure women’s safety in business travel.


Indian business travel market is highly fragmented. ~70% of corporates spend less than INR 10 million on business travel. The second highest operational cost for most organizations is that of business travel.

Business travel is central to both maintaining business as well as expanding it. It is becoming mandatory for corporates to drive higher levels of efficiency in their managed travel program because of the rising cost of travel.

The cost of travel for an organization encompasses much more than just the price of air tickets. To account for the total financial impact, organizations need to consider all the costs associated with the procurement, management, and use of travel. These include:

Front end costs

These are the costs that surround the Duty of Care, travel management administration, procurement, supplier, and contract management fees.

Travel costs and expenses

Cost of travel including ticket purchase, parking fees, lease or hire prices of vehicles, or maintenance and fuel costs. Additional charges may also come from accommodation fees, travel expenses, and insurance claims.

Back end costs

These are the costs that are associated with invoicing and expense processing, management and reporting, and possibly litigation costs. While traveling internationally, foreign exchange spending is another significant cost incurred—the reason being the volatility in the exchange rates.

To control complicated travel and entertainment costs of an organization, four main levers demand constant, coordinated interaction.

  • Procurement
  • Billing & Payments
  • Expense Reporting
  • Management Reporting


In the high-pressure work environment of today, 46% of the workforce in India suffers from some form of stress. Reasons such as tight deadlines, conflict among colleagues, long work hours, etc. contribute to the stress. High stress in employees adversely affects their performance. This is visible through lower engagement with their work, decline in productivity and higher absenteeism levels.

Business travel can expose employees to variables that are out of their control such as flight delays, thereby increasing chances of stress. It was observed that 87% of travelers feel that the quality of their business travel impacts their business results.

For the modern business traveler, access to certain facilities and Wi-Fi connectivity is crucial for a successful business trip. Other factors that cause stress in a business traveler include long transit times, hostile work environment, shady hotel locations, and meals.

For international travelers, the availability of foreign exchange is a key concern. Because of the restrictions on the amount of forex that can be carried. This is especially accurate for long haul trips that span across multiple destinations. At times, business travelers also have to carry multiple currencies for such trips, which can be stressful. Having a forex travel card can mitigate these concerns to a high degree.

Performance Improvement in Business Travel Management

Stress-inducing elements can lead to a decrease in productivity for employees by disturbing their peace of mind and distracting them from business objectives. To maximize the purpose of a business trip, employees need to feel relaxed and refreshed, at all stages of travel. This allows them to focus solely on their work, leading to improved performance.

Over 90% of these travelers agreed that business travel impacts their overall job satisfaction and performance. This is especially accurate amongst millennials, who believe that business and pleasure go hand in hand to be productive.

Traveler-focused policies could help companies increase corporate productivity by up to 32%, while also improving traveler performance and well-being. Thus, organizations need to ensure proper systems are in place for a seamless employee travel experience.

Elements Affecting Employee Productivity


The business travel industry has buyers and sellers and a network of partners who ease the pain points between supply and demand. However, a travel buyer’s supply chain is very complex. With multiple stakeholders like airlines, hotels, transportation providers, technology companies, payment providers, global distribution systems (GDS), travel management companies (TMCs), and others in the line.

Suppliers and partners don’t only have contracts with buyers but also with each other. This adds to the complexity of the supply chain. Airlines and hotels have agreements with GDSs. GDSs have agreements with TMCs. TMCs have agreements with airlines and hotels— independent from each party’s agreement with the buyer. These stakeholders are engaged in a many-to-many interaction web.

Consequently, there is a complex and invisible stream of payments, incentives, commissions, bonuses, overrides, discounts, waivers and favors flowing within the value chain. This poses a challenge to travel managers. With the advent of online booking combined with the rising importance of securing personal data, there is an increased need to ensure no leakages occur in terms of data of employees who are traveling for business.

Although agreements between third parties always contain confidentiality and non-disclosure clauses, corporates need to ensure their efficacy. Additionally, insightful data from booking systems such as number of employees booking out of policy, flouting advance booking guidelines, canceling/modifying travel arrangements can help travel managers become savvier and maximize the return on trips for the corporation while eliminating unnecessary travel costs.

Transparency with respect to traveler satisfaction can help corporates in not only attracting and retaining talent but also in improving ROI of the travel. Travel managers can improve the effectiveness of their company’s travel by bringing in transparency in the aforementioned areas.

Way Forward

The Indian business travel market has grown significantly over the years, making India the 7th largest business travel market. The volume of travel is expected to grow further as companies expand their businesses in an increasingly connected world.

With a tech-savvy and digitally inclined workforce, organizations need to be well equipped to address the needs of their employees while maintaining their business objectives. Thus, a collaboration between companies and their travel partners is more important than ever.

The four pillars of corporate travel management services as an underlying foundation for developing a comprehensive travel program that aims to integrate and fulfill the needs of all the stakeholders involved.

Beep Corporate’s intuitive end-to-end corporate travel solution is all set to change the corporate travel landscape, creating better business travel experiences. To find out how write to us at or call us on 0281-2450321/20.


Related Read:

Digital Solutions to Save Upto 30% of Corporate Travel Cost

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BEEP Corporate is developed to simplify traveller management for corporate organizations. The portal facilitates corporate to pre-book cabs with associated travel operators without mailing them every time to inquire rates or confirm a booking.

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