{"id":101281,"date":"2024-08-12T10:44:20","date_gmt":"2024-08-12T10:44:20","guid":{"rendered":"https:\/\/www.itilite.com\/in\/blog\/\/"},"modified":"2024-08-12T10:50:26","modified_gmt":"2024-08-12T10:50:26","slug":"unmanaged-business-travel","status":"publish","type":"post","link":"https:\/\/www.itilite.com\/in\/blog\/unmanaged-business-travel\/","title":{"rendered":"Why is Unmanaged Business Travel Costing My Company?"},"content":{"rendered":"
<\/div>\n
\"Unmanaged<\/figure>\n\n\n\n
<\/div>\n\n\n\n

Unmanaged travel processes happen when a company doesn\u2019t have a formal system or policy for overseeing travel. In this setup, employees book their flights, hotels, and transportation. They do not follow any standard guidelines. They might use travel agents or online booking platforms to arrange their trips independently.<\/p>\n\n\n\n

At first glance, unmanaged business travel may seem more convenient. It offers employees greater flexibility and requires less oversight from the company. Skipping formal travel management might seem like it saves money. This is because it avoids the fees for outsourced travel services. <\/p>\n\n\n\n

But is unmanaged travel genuinely cost-effective? This approach can lead to increased expenses that outweigh the perceived benefits. This blog focuses on the drawbacks of unmanaged travel and what you can do instead.<\/p>\n\n\n\n

6 Drawbacks of Unmanaged Corporate Travel<\/h2>\n\n\n\n

1. Lack of Visibility and Control<\/h3>\n\n\n\n

One of the primary reasons unmanaged business travel is expensive is the lack of visibility and control over travel expenses. When employees book travel independently, the company cannot track or manage these expenditures. This often leads to:<\/p>\n\n\n\n

Non-compliance with Travel Policies<\/strong><\/p>\n\n\n\n

Employees may book premium flights or stay at luxury hotels exceeding budget limits.<\/p>\n\n\n\n

Missed Opportunities for Savings<\/strong><\/p>\n\n\n\n

Without oversight, companies miss out on bulk booking discounts, corporate rates, and other cost-saving opportunities.<\/p>\n\n\n\n

Inconsistent Reporting<\/strong><\/p>\n\n\n\n

Discrepancies in travel expense reporting can lead to financial mismanagement.<\/p>\n\n\n\n

2. Increased Administrative Burden<\/h3>\n\n\n\n

Unmanaged business travel increases the administrative burden on both employees and finance teams. Consider the time and effort required to:<\/p>\n\n\n\n

Book Travel<\/strong><\/p>\n\n\n\n

Employees spend valuable hours searching for flights, hotels, and transportation options.<\/p>\n\n\n\n

Process Expense Reports<\/strong><\/p>\n\n\n\n

Finance teams face a deluge of travel receipts and expense reports, often filled with errors and inconsistencies.<\/p>\n\n\n\n

Reconcile Expenses<\/strong><\/p>\n\n\n\n

Manually reconciling travel expenses is time-consuming and prone to mistakes. It leads to potential errors.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

3. Inefficiencies and Delays<\/h3>\n\n\n\n

Without a streamlined travel management process, inefficiencies and delays become inevitable. These can manifest in various ways:<\/p>\n\n\n\n

Booking Complications<\/strong><\/p>\n\n\n\n

Last-minute bookings due to lack of planning can result in higher costs and limited options.<\/p>\n\n\n\n

Travel Interruptions<\/strong><\/p>\n\n\n\n

Unmanaged travel plans are more susceptible to disruptions, causing delays and additional costs.<\/p>\n\n\n\n

Lost Productivity<\/strong><\/p>\n\n\n\n

Time spent on travel arrangements and resolving issues detracts from employees’ core responsibilities.<\/p>\n\n\n\n

4. Poor Traveler Experience<\/h3>\n\n\n\n

Employee satisfaction is crucial for productivity and retention. Unmanaged travel can negatively impact the traveler experience in several ways:<\/p>\n\n\n\n

Stress and Fatigue<\/strong><\/p>\n\n\n\n

Unmanaged business travel can lead to stressful and exhausting journeys, affecting employee well-being and productivity.<\/p>\n\n\n\n

Inconsistent Travel Quality<\/strong><\/p>\n\n\n\n

Employees may face varying service and accommodation quality levels without a standardized travel policy.<\/p>\n\n\n\n

Lack of Support<\/strong><\/p>\n\n\n\n

Unmanaged corporate travel often means limited support for travelers during emergencies or disruptions.<\/p>\n\n\n\n

5. Missed Data Insights<\/h3>\n\n\n\n

Data is a powerful tool for optimizing business travel, but unmanaged travel lacks the necessary data collection and analysis:<\/p>\n\n\n\n

Spending Patterns<\/strong><\/p>\n\n\n\n

Without data, companies cannot identify spending patterns or areas where costs can be reduced.<\/p>\n\n\n\n

Travel Trends<\/strong><\/p>\n\n\n\n

Understanding travel trends helps you negotiate better rates and make informed decisions.<\/p>\n\n\n\n

Employee Preferences<\/strong><\/p>\n\n\n\n

Data insights can improve travel policies by aligning them with employee preferences and needs.<\/p>\n\n\n\n

6. Ineffective Expense Management<\/h3>\n\n\n\n

Effective expense management is crucial for financial health. Unmanaged travel expenses often lead to:<\/p>\n\n\n\n

Overlapping Expenses<\/strong><\/p>\n\n\n\n

Without a centralized system, there\u2019s a higher risk of duplicate or overlapping expenses.<\/p>\n\n\n\n

Delayed Reimbursements<\/strong><\/p>\n\n\n\n

In unmanaged business travel, employees may face delays in reimbursement, causing dissatisfaction and financial strain.<\/p>\n\n\n\n

Budget Overruns<\/strong><\/p>\n\n\n\n

Uncontrolled spending can quickly escalate, leading to budget overruns and financial instability.<\/p>\n\n\n\n

Suggested Read:<\/em><\/strong><\/p>The Impact of Data Analytics for Smarter Decision-Making<\/a> <\/strong><\/cite><\/blockquote><\/figure>\n\n\n\n

How a Travel Management System Streamlines Your Business Travel Processes and Saves You Money?<\/h2>\n\n\n\n

Travel management software (TMS) is a specialized platform designed to streamline and automate business travel management<\/a>. It enables organizations to plan, book, track, and analyze travel-related activities and expenses. <\/p>\n\n\n\n

Moreover, it ensures compliance with company policies, optimizes costs, and enhances the overall travel experience. It streamlines business travel in the following ways.<\/p>\n\n\n\n

1. Centralized Booking System<\/h3>\n\n\n\n

TMS ensures that all travel arrangements are made through a single platform, providing visibility and control over travel expenses.  <\/p>\n\n\n\n

Policy Compliance<\/strong><\/p>\n\n\n\n

The platform automatically enforces company policies during booking by displaying out-of-policy options in a separate tab. Employees who select these options are flagged and sent for further review by the relevant approver.<\/p>\n\n\n\n

Negotiated Rates<\/strong><\/p>\n\n\n\n

Access to corporate rates and bulk booking discounts reduces overall travel costs. Without TMS, unmanaged business travel can lead to missed discounts and higher costs.<\/p>\n\n\n\n

Integration Capabilities<\/strong><\/p>\n\n\n\n

TMS can connect with the software of other departments. For instance, integration with ERP makes financial management smoother by automating expense tracking, reports, and matching costs. Similarly, sync with HR systems keeps traveler information current, ensuring that travel plans are accurate<\/p>\n\n\n\n

2. Automated Policy Enforcement<\/h3>\n\n\n\n

Employees booking travel with unmanaged corporate travel often overlook policy guidelines. However, travel management software enforces compliance. TMS can automate these processes:<\/p>\n\n\n\n

Clear Guidelines<\/strong><\/p>\n\n\n\n

Define permissible travel expenses, preferred suppliers, and booking procedures.<\/p>\n\n\n\n

Approval Workflows<\/strong><\/p>\n\n\n\n

Implement automated approval workflows to prevent unauthorized spending. <\/p>\n\n\n\n

Regular Reviews<\/strong><\/p>\n\n\n\n

Periodically review and update the travel policy to reflect changing business needs and market conditions.<\/p>\n\n\n\n

3. Expense Management Integration<\/h3>\n\n\n\n

TMS streamlines the expense reporting process, reducing administrative burden and improving accuracy. Features to look for include:<\/p>\n\n\n\n

Automated Expense Reporting<\/strong><\/p>\n\n\n\n

Unmanaged business travel depends on employees manually submitting expense reports. TMS simplifies the reporting process with automated expense capture and categorization.<\/p>\n\n\n\n

Receipt Management<\/strong><\/p>\n\n\n\n

Enable employees to upload receipts electronically, reducing paperwork and improving record-keeping.<\/p>\n\n\n\n

Integration with Financial Systems<\/strong><\/p>\n\n\n\n

Seamless integration with accounting systems ensures accurate expense reconciliation and reporting.<\/p>\n\n\n\n

4. Comprehensive Travel Support<\/h3>\n\n\n\n

Providing comprehensive travel support enhances the traveler experience and ensures their safety. Consider features like:<\/p>\n\n\n\n

24\/7 Assistance<\/strong><\/p>\n\n\n\n

The company providing the TMS offers round-the-clock assistance, ensuring travelers receive immediate support for disruptions, such as flight cancellations. This 24\/7 availability minimizes stress, quickly resolves issues, and ensures travelers can continue their journeys smoothly<\/p>\n\n\n\n

Traveler Tracking<\/strong><\/p>\n\n\n\n

Traveler tracking in TMS provides real-time updates on employee locations during their trips. This feature enhances safety by allowing travel managers to monitor where employees are at all times. If any issues arise, such as travel disruptions or emergencies, managers can quickly assist, ensure help is provided, and make necessary adjustments to the travel plans.<\/p>\n\n\n\n

Pre-Travel Briefings<\/strong><\/p>\n\n\n\n

Pre-travel briefings in a TMS help employees prepare for their trips by providing necessary information. These briefings cover travel risks, like health or safety concerns, and offer advice on staying safe. They also include health updates and emergency contacts, ensuring employees are prepared and know what to do if issues arise.<\/p>\n\n\n\n

5. Data Analytics and Reporting<\/h3>\n\n\n\n

Utilizing data analytics and reporting tools within TMS provides valuable insights into travel spending and trends. Unmanaged business travel may create inconsistencies in expense reporting, which TMS can automate. Benefits include:<\/p>\n\n\n\n

Identifying Cost Savings<\/strong><\/p>\n\n\n\n

Analyze spending patterns to identify opportunities for cost reduction. Not available in unmanaged corporate travel.<\/p>\n\n\n\n

Negotiating Better Rates<\/strong><\/p>\n\n\n\n

TMS uses data from past bookings to help negotiate better rates with suppliers. It looks at travel patterns and spending trends to determine where you spend the most. By leveraging bulk volume, TMS helps get better deals and lower prices.<\/p>\n\n\n\n

Improving Travel Policies<\/strong><\/p>\n\n\n\n

Refine travel policies based on data-driven insights to align with business needs and employee preferences.<\/p>\n\n\n\n

Suggested Read:<\/em><\/strong><\/p>Benefits of itilite as Your Corporate Travel System<\/a><\/strong><\/cite><\/blockquote><\/figure>\n\n\n\n

Make Your Business Travel Program More Efficient with itilite<\/h2>\n\n\n\n

Experience unmatched savings and efficiency with itilite travel management solution. Our transparent pricing and exclusive negotiated rates can cut your business travel costs by up to 30%. <\/p>\n\n\n\n

You get the convenience of our all-in-one, user-friendly platform, where you can seamlessly book and manage every aspect of your travel in one place. With itilite, automated processes streamline your travel experience, including smart flight price reshop and hassle-free management of unused tickets. <\/p>\n\n\n\n

Our dedicated customer support is available around the clock to assist you whenever needed. Transform your corporate travel management<\/a> with itilite, where savings, simplicity, and support come together.<\/p>\n","protected":false},"excerpt":{"rendered":"

This blog focuses on the drawbacks of unmanaged travel and what you can do instead.<\/p>\n","protected":false},"author":12,"featured_media":101283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[18],"tags":[21,15],"class_list":["post-101281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel-management","tag-corporate-travel-management","tag-travel-management-company"],"acf":[],"yoast_head":"\nWhy Unmanaged Business Travel is Costing Your Company More?<\/title>\n<meta name=\"description\" content=\"Read this blog to know the hidden costs of unmanaged business travel and how it affects your company's budget.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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