As the business landscape becomes increasingly globalized, travel for client meetings, conferences, and other business-related activities continues to take on greater importance for companies large and small.
But while it’s essential for your business to grow, travel — and its associated expenses and risks for employees — can be a constant source of stress, especially for small companies with constrained resources.
In addition to working with limited travel budgets, small companies typically don’t have the spend volume to negotiate corporate discounts with travel providers. And of course, a business travel program has to do more than just book airfares, hotels, and car rentals: Small companies also need to fulfill their duty of care, support employees, and manage expense reports — and most likely, they don’t have an entire risk management and finance team dedicated to providing these services.
In this guide to managing corporate travel, we discuss the unique challenges that travel poses for small businesses and outline seven strategies to help you create an approach that’s seamless, cost-effective, and employee-friendly.
7 essential travel solutions for small businesses
Travel impacts your bottom line, your employee satisfaction, and your overall operational efficiency. So, how do you manage business travel when you’re a small company? To be effective, control costs, and make sure employees are adhering to your corporate travel guidelines, you need to streamline processes, implement cost-effective solutions, and put clear policies and processes in place.
When managed strategically, business travel can be a powerful tool that strengthens client relationships and helps your business grow. These seven strategies for small business travel will empower you to navigate business travel efficiently and purposefully:
- Define clear travel policies and guidelines An effective travel management program is rooted in a clear and well-communicated corporate travel policy. Your written policy should provide comprehensive guidelines for booking flights, choosing accommodations, and submitting expenses. It should specify approved vendors, travel class standards, and any limitations on travel-related expenses so employees know upfront what will be covered and what won’t.
- Encourage compliance through employee training The most well-crafted travel policy will be ineffective if your employees aren’t aware of it. Make your corporate travel policy readily available and host annual training sessions to educate employees about the policy, including booking procedures and expense submission guidelines. Your communications should emphasize the importance of policy compliance not only for the overall success of your business but for employees’ safety.
- Use technology for seamless booking and expense management Technology has been a game-changer that makes it easier for small businesses to streamline their travel management processes. An investment in user-friendly travel management tools or mobile apps allows your employees to book flights, hotels, and ground transportation seamlessly. Integrating expense management tools into your system simplifies the process of submitting and approving expenses, which reduces administrative overhead and improves accuracy and transparency.
- Consolidate travel data for informed decision-making Data can be a goldmine for travel management optimization and provides a holistic view of what’s working and what’s not for your company’s travel program. Small businesses can leverage data analytics tools to analyze spending patterns, identify preferred vendors, and predict travel behaviors so you can make informed decisions, negotiate better deals with preferred suppliers, and identify opportunities for savings. It can also help you get a more accurate handle on what your future travel expenses might look like.
- Negotiate corporate rates with preferred vendors As a small business, you may not have the same negotiating power as larger corporations but you can still establish relationships with your preferred vendors to lock in favorable rates. Reach out to airlines, hotels, and car rental companies to negotiate corporate rates based on the volume and frequency of your business travel. These discounts can add up to significant savings over time.
- Prioritize employee safety and well-being Managing the safety and well-being of your employees while they’re traveling for work is a top priority. Invest in duty of care services, including real-time tracking, emergency assistance, and communication protocols, to protect your employees while they’re traveling on behalf of your company.
- Embrace flexibility While cost control is crucial, it’s equally important to take your employees’ needs into account. Business trips can be demanding, and a rigid travel management program that’s overly burdensome may make employees less likely to comply with travel policies. Build flexibility into your program where possible, such as letting employees choose their preferred airline or accommodations as long as prices are comparable.
Not sure how to put these strategies into action? Partnering with a business travel management system provider can help you implement all seven strategies and make sure that travel aligns with your business objectives while minimizing costs, maximizing efficiency, and providing a safe and seamless experience for employees.
You can significantly improve your approach by choosing a partner with a specialty in small business travel management so they can help you:
- Understand best practices for your corporate travel program.
- reate and implement a comprehensive policy that provides clear guidelines for effective, cost-efficient, easy, and safe travel.
- Negotiate more favorable rates with travel providers.
- Simplify the travel booking process and support policy compliance by setting reasonable parameters around travel spending, such as what the types of airfares and hotels employees can book.
- Manage risks and help fulfill your duty of care.
- Provide real-time support to employees while they’re traveling.
- Automate expense reporting and reimbursement approvals.
- Streamline the travel experience so business trips becomes an enjoyable perk instead of a burden for your employees.
- Provide accurate reporting so you can stay on top of your budget.
How to choose the best corporate travel platform
Coordinating travel is rife with complexities, and navigating all the ins and outs can be challenging for small businesses with limited manpower and resources. When you’re choosing a corporate travel management partner, look for one that offers:
- Tailored solutions for small businesses: A one-size-fits-all approach rarely works in business, and the same holds true for travel management. Seek out a partner who understands your unique needs and is able to provide customized solutions for small enterprise. This might include flexible booking options that let employees make their own travel arrangements instead of going through a travel agency and mobile apps that streamline expense reporting and reimbursement.
- Cost-effective solutions: Cost management is a critical consideration for small businesses. Choose a travel management service that can secure cost-effective travel options for your company. This includes negotiating cost savings on flights and accommodations as well as on hidden travel costs, such as fees for last-minute changes and cancellations.
- User-friendly technology: A good partner should offer user-friendly travel management software and online booking tools that simplify the planning process. Their technology should provide real-time updates, allow for easy changes or cancellations, and offer a seamless expense reporting experience.
- Duty of care: Traveler safety is always a paramount concern. Look for travel management services that provide 24/7 customer support, emergency assistance, risk management, and real-time location tracking.
Ready to get started? The best corporate travel platform for small businesses will help facilitate all these strategies – and more.
Transform your small business’s travel management program today by integrating these 7 essential strategies and unlock the potential for seamless, efficient travel with Amex Global Business Travel by your side.
