Travel disruptions can be tough for everyone, but employees at small and midsize businesses (SMBs) have it even harder if they don’t have a well-managed travel program. Over a third of SMB business travelers around the world report they’re not required to use a company booking tool, and some aren’t given any tool at all. In fact, 20% work for companies with no travel policy. This lack of guidance makes it challenging when plans change and also makes it difficult for the company to track employees, support them, and manage expenses.
Consider this: between April 2023 and April 2024, 20% of flights in the U.S. were delayed and 1.3% were canceled, according to government data. As a result, 89% of SMB business travelers in the U.S. had to adjust during their trips, like rescheduling meetings, spending more money, and staying longer than expected. This is significant because two-thirds of SMB travelers believe business trips are key to career growth. So without a managed travel program, how can they handle these unforeseen events responsibly and economically?
Managed travel programs offer many advantages. With a set budget and clear policies, SMBs can better manage travel and related expenses. One-third of these travelers like to see all travel options before making a choice, and booking tools help streamline this process. When disruptions happen, many travelers prefer self-service options to make changes themselves. A third of them point out that it’s essential for their company’s booking tool to allow them to rebook or change reservations due to cancellations or delays, and 62% would rather do this on their own using a company tool or supplier’s website. Self-service options can significantly enhance the travel experience by cutting down wait times with customer service.
Partnering with a travel management company (TMC) can further enhance the benefits of a managed travel program. TMCs can secure better rates and discounts, handle emergencies, ensure compliance with policies, and more. In fact, 31% of SMB travelers like booking their trips through a travel agent who can advise on the best options.
As SMBs aim to maximize their resources, artificial intelligence (AI) and automation can be helpful. AI assistants can provide safety information or help in choosing travel options based on simple language prompts. A massive 94% of SMB travelers can see themselves using AI-powered tools during booking. They are open to AI tackling time-consuming tasks, such as ensuring compliance with travel policies or helping with visas and documentation. More than a third see AI playing a role in capturing and reporting expenses, making trips less tedious.
Travel and expense management tools can give access to valuable data and insights, with AI helping to spot trends that might otherwise go unnoticed, like savings opportunities and potential fraud, while aiding budget planning and management.
But implementing a managed travel program, despite its benefits and the future potential with AI, requires upfront effort. Companies need to invest time and money to document policies, set up tools, and train employees. Online resources such as policy templates can simplify this process, and travel solution vendors can offer guidance on launching success, sharing plans, best practices, and training materials. The right partner can also help monitor the program’s performance and tweak it to meet company objectives.
Switching to a managed travel program may bring changes to how employees book and expense trips, which can cause frustration. It’s important to emphasize that they can still choose their preferred vendors with these new tools and policies. Most employees want to manage company finances well, so it’s essential to highlight how this new system benefits everyone. Use basic change management strategies like clear communication about what’s changing, engaging in open conversations with employees, and ensuring leaders are well-informed to model the new procedures.
In the face of ongoing travel disruptions, a managed travel program can streamline processes, benefiting both employees and the SMB. A bit of organization in travel and expenses can unveil efficiency opportunities, reduce stress on employees, and enhance the overall business travel experience.
