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How can outsourcing your business travel save your company money?

Posted by: Jeanett Abbotson
12/04/17

Business travel is a minefield. Not only does it have to suit the traveller themselves, but also the budget – and many large companies employ internal travel managers to oversee this process, but for smaller companies it’s often left to secretaries or procurement to oversee travel, perhaps with the assistance of a TMC (Travel Management Company).

Business Travel costs money and money requires management.

Expertise

When you’re handling a lot of employees who are travelling regularly, such as fly in fly out workers on a mine site, or seafarers and oil and gas workers on rotation, it can be a great idea to outsource your travel to a company who knows the market, their clients’ needs, and has the expertise to understand all aspects of the bookings. Anybody can book a ticket but fully understanding and creating the right travel programme for your company takes both a strategic and operational travel manager.

Process Improvement

A good outsourced travel manager will work with you to improve your processes, ensuring time, resources and of course money aren’t wasted when there’s an easier way. Full implementation and adherence to travel policies is one way in which you can potentially save money and is something which is often overlooked, but can really help to engage employees and streamline cost savings and efficiency. An experienced Travel manager will be able to compile and analyse data to improve policies. It goes without saying within the marine and offshore industries that risk management and duty-of-care programmes are built into the travel policy. A good travel manager can ensure that policies are maintained to the highest level. New technologies are helping to achieve greater efficiencies by integrating crew HR and travel systems to better support workflow.

Performance Management

Measuring performance becomes infinitely simpler when only dealing with one supplier. You can also agree KPIs to be met throughout the duration of the contract.

Better Visibility on Spend

It sounds simple but in reality it can be quite difficult to track exactly how much you’re spending on travel. When you outsource your business travel, it’s simple to keep abreast of your spending and budget. Your outsourced partner can assist in reviewing reporting from TMCs, corporate card spend and expense data. This can be used to measure travel policy compliance and specific metrics such as advance purchase and lowest logical airfare. 

Negotiated Rates

The marine and Energy sectors have special exclusively negotiated airfares and your business will need the assistance of an experienced travel manager to take full advantage of these.

Furthermore the outsourced travel manager will be able to assist in negotiating with airlines and hotels for route/hotel deals or will already have access to special lower “bulk prices” through the TMC.

Reducing Overheads and Staff Costs

By outsourcing your travel management, many related costs are effectively removed from your business – associated staffing and technological costs as well as access to software, and overheads can be reduced or even removed.

If you’re interested in learning about how WRS’ Global Mobility team can help you to drive down travel and associated costs in your business, please feel free to contact me today.

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