As businesses work to grow worldwide, corporate travel has become a crucial factor in managing an organization. We can observe that companies nowadays pay attention to travel expenses just like any other essential expenses. This is to maintain global connections, deal with clients, and keep a strong foot in the expanding market.
But, with the expanding need to travel, building and maintaining a system that allows you to keep an eye on all the expenses can be extremely difficult. This is where corporate travel expense management comes in! This system allows you to curate a business trip that is well-planned, budget-friendly, comfortable for the traveller, and, most of all, proves to be productive for the company.
Although many organizations have developed a CTEM for growing travel demand, it still becomes challenging to check the efficiency of the program. In this blog, we will explore the importance of having an efficient CTEM and how you can check the system for better functioning.
Importance of Efficient Corporate Travel Management
Corporate travel plays a vital role in the company’s success and ensuring that an employee has a satisfactory yet productive trip is very important. Efficient corporate travel management ensures that the trip does not go out of budget, includes a plan for risk management, and can bring benefit to the organization. In this segment, we have included the importance of having a corporate travel management system in an organization:
Smooth Booking Process
A travel management system makes the booking process simple for that employee by pre-planning and automating procedures like hotel booking, travelling, etc. This allows the employee to focus on the important work without worrying about their convenience.
Cost Efficiency
Cost efficiency is one of the greatest benefits of having effective corporate travel management, as it allows you to book travel and stay at a negotiated price. It also helps in managing the budget and keeping a record of all the resources.
Risk Management
Through an efficient travel management system, a company can keep a record of all the trips and prepare for all the risks. The organization can avoid any uncertainty by ensuring the safety and productivity of its employees.
High Satisfaction and Productivity
In simple words, a comfortable travel arrangement is directly proportional to a satisfactory and productive trip. If the company authorities are ready to back up the employee on the trip, it makes things a lot easier, leading to better results.
4 Ways to Identify the Efficiency of Your CTEM
Now that we know the importance of having an effective CTEM, the question is, how do you know if your Corporate Travel Expense Management is working well? This system is supposed to make the process of planning a corporate trip easy, time-saving, and money-efficient. But, in an organization where numerous complicated procedures are taken care of, how do you ensure an effective CTEM? Well, below are some of the key indicators you can use to check or build the efficiency of your Corporate Travel Expense Management:
Real-Time Visibility Expense Reporting
If you are still scrolling through the old spreadsheets, trying to get the travel expenses in line, your CTEM needs to change. It is more than important for a finance manager to be able to track travel finances in real time. This is to ensure that you are able to catch the errors without any delay. Moreover, this process can reduce a lot of work stress and help the organization manage every single penny. Real-time visibility can also allow the company to keep the employee alert about spending.
Traveller Satisfaction
An efficient CTEM can help the organization maintain the human element of the complete process. Make sure to create a system that is user-friendly, and helps the employee have a safe and comfortable trip. Moreover, it is essential to build a system that allows the traveller to take control of their own expenses and have the most productive trip. One should remember that a happy employee can help the company achieve great success.
Direct Access to All Invoices
The finance team of the company should have access to all the trip invoices digitally. Waiting for the employee to submit a hard copy of all the invoices can make budget tracking very hectic. It can also increase the chances of the team causing errors in the final report. The finance manager should have the right to approve or disapprove the invoice immediately. This would lead to efficient future planning and quick payments.
Corporate Travel Policy
To have successful Corporate Travel Expense Management, having a clear policy is crucial. Having a travel policy that allows you to lay down a budget for the employee, set travel rules, and ensure automated travel booking systems. This eliminates reckless expenses and helps the employee stay focused on the target. The travel policy keeps the travel program on track.
Conclusion
Building an effective CTEM has a lot of benefits of its own! It is not just about money; simplified processes, efficient planning, and reduced work stress are some add-ons. An organization can create a system that has flexible policies, real-time visibility, and more to ensure success. Additionally, a streamlined CTEM is data-driven and keeps the employees satisfied with the travel experience.
