Disruptions affect every type of traveler, but employees at small and midsize businesses (SMBs) could be at a disadvantage if they don’t have a managed travel program.
More than a third (35%) of business travelers at SMBs globally report they are never required to use a company-provided booking tool. One in 10 isn‘t provided with any booking tool at all, and one in five works at a company without a travel policy. This lack of structure adds complexity for travelers when plans change and makes it more difficult for a company to know where employees are, support them, and manage costs.
Consider that between April 2023 and April 2024, 20% of U.S. flights were delayed and 1.3% were canceled according to Bureau of Transportation data. In response, 89% of surveyed U.S. business travelers working at SMBs say they had to take unanticipated steps during corporate travel within that time period, including rescheduling meetings, incurring additional expenses and spending unplanned days on a trip.
These disruptions matter. Two-thirds of global business travelers at SMBs say that traveling for work is critical to their career progression. Without a managed travel program, how are they supported when unforeseen circumstances derail their plans? How can they achieve their goals in a responsible, safe and cost-effective way?
Benefits of a Managed Travel Program
A managed travel program offers vital benefits to businesses and their travelers. With dedicated budget and defined policies in place, SMBs can better control travel costs and employee expenses. One-third of SMB travelers prefer to sort through all available travel options to choose the ones they want for their trip. Booking tools make it faster and easier to see the options and make the best choice.
When disruptions occur, many SMB travelers seek self-service options to make adjustments themselves. A third emphasize that it’s critical their company’s booking tool provides the ability to rebook or change reservations due to cancellations or delays, and 62% would prefer doing so on their own using a company tool or the supplier’s website. Given the frequency of travel disruptions, self-service capabilities can improve employee experience by avoiding the customer service queue.
Partnering with a travel management company (TMC) can amplify the benefits of a managed travel program. TMCs can negotiate better rates and discounts, manage emergencies, ensure policy compliance and more. In fact, 31% of SMB business travelers prefer booking their work trips through a travel agent who can recommend the best options.
Advancements on the Horizon
As SMBs strive to do more with less, artificial intelligence (AI) and automation can help. For instance, AI assistants can provide well-being and safety information or cull travel options for employees based on natural language prompts. An overwhelming majority of SMB travelers (94%) identify at least one way they would consider using AI-powered automation during the booking process.
SMB travelers are open to using AI for time-consuming administrative tasks, like complying with their organization’s travel policy or visa and documentation support. More than a third of travelers (35%) see a role for AI to capture and report expenses, cutting down on tedious work when they return from a trip.
Travel and expense tools can also provide access to a wealth of information with data and analytics. AI‘s fast processing speeds and pattern recognition can help SMBs identify trends over time that may be less noticeable to the human eye, including cost-saving opportunities and potential fraud, while assisting with budget development and management.
Challenges of Implementation
Although a managed travel program has many benefits, with more on the way as AI matures, it does take upfront effort to reap the rewards.
A company should plan for time and financial investments related to documenting policies, setting up tools and training employees to use them. Online resources, such as travel policy templates, can make the process easier. A travel and expense solution vendor can share plans, timelines, best practices and training resources for launch. The right partner can also assist with monitoring performance and tweaking the program based on company goals.
Establishing a managed travel program changes the way that employees book and expense trips, and that might lead to frustration or resistance. Underscore that they can still book the vendors they love with these new tools and policies. Most employees want to be good stewards of company finances, so show them how this benefits the business. Remember basic change management principles, including clear communication about what’s changing, engaging in open dialogue with employees, and ensuring that leaders and other influential team members get up to speed quickly to model new behaviors.
As travel disruptions persist, a managed travel program can simplify processes while benefitting employees and the SMB alike. A bit of rigor and structure in travel and expense can reveal opportunities for efficiency and cost savings, alleviate burdens on employees, and enhance the business travel experience.
Kacey Flygare is the Global Business Head and GM, SMB, at SAP Concur
