The Hidden Costs of Unmanaged Business Travel

When it comes to business travel, companies often grapple with a complex puzzle. In a bid to save time, money, resources, and mitigate headaches, many organizations allow their employees to take the reins and manage their own business travel. But is this truly a cost-effective approach, and what are the potential pitfalls of unmanaged business travel?

While it might seem like a practical choice, consider this: you wouldn't let your employees waltz into a furniture store and pick out whatever they fancy for the office, all on the company's dime. Similarly, you wouldn't entrust your employees with managing their own benefits or payroll. So why, then, do many companies relinquish control when it comes to travel?

Let's explore the hidden costs and potential drawbacks of unmanaged business travel.

Understanding Unmanaged Business Travel

Unmanaged business travel, often referred to as "self-booking," allows employees to make their own travel arrangements. This typically involves reaching out to travel agents or using online booking platforms designed primarily for leisure travelers, followed by submitting expense receipts for reimbursement.

The Drawbacks of Unmanaged Business Travel

While unmanaged business travel is often seen as a way to provide flexibility to employees and reduce managerial overhead, it is not without its downsides. Here are some of the key drawbacks:

1. Lack of Policy Enforcement: Unmanaged travel is frequently favored by smaller companies that may not have standardized booking policies in place. Even if policies exist, enforcing them becomes challenging. This can lead to higher travel costs, non-compliance with travel regulations, a lack of data, and difficulties in overseeing the travel budget.
2. Fragmented Booking Processes: When employees make their travel arrangements, they often book through various websites, resulting in a multitude of invoices for the finance team to handle. This fragmented process is not only disorganized but also resource-intensive and time-consuming.
3. Insufficient Travel Support & Risk Management: Unmanaged travel exposes companies to increased risk, especially in terms of employee safety and security during unforeseen circumstances or emergencies. It can also lead to inadequate support for employees during their trips.

The Benefits of Managed Business Travel

On the flip side, managed business travel solutions involve companies taking control of their employees' travel arrangements. This can be achieved through online or cloud-based booking tools or by partnering with external travel management companies.

Here are some benefits of opting for managed business travel:

1. Cost Control: Managed travel programs often secure exclusive business discounts, negotiated rates, and VAT recovery, resulting in potential cost savings.
2. Systemized Processes: Managed travel solutions offer streamlined booking processes, centralizing data and improving efficiency. Automation of policy enforcement, approval workflows, and expense reporting enhances control.
3. Discounts and Supplier Connections: Managed travel partnerships provide access to exclusive discounts and travel suppliers not available on consumer websites, leading to significant savings.
4. Risk Mitigation: Managed travel platforms offer resources to mitigate risks, including 24/7 customer service, flexible booking options, and comprehensive traveler support.

While corporate travel management may seem daunting or expensive to some companies, it can actually lead to cost savings through discounts, better tracking of expenses, and improved efficiency.

BNW Travel's VoyagePro: A Solution Worth Exploring

One notable player in the field of corporate travel management is BNW Travel Management. Their solution, BNW VoyagePro, simplifies corporate travel booking, enhances cost efficiency, and ensures compliance with travel policies. With features like cost control, negotiated rates, invoicing, flexible booking approval workflows, and real-time reports, it provides comprehensive support for businesses.

In conclusion, while unmanaged business travel might appear to be a convenient option, it often comes with hidden costs and challenges. Considering a managed travel solution like BNW VoyagePro can not only streamline your travel processes but also result in cost savings and better risk management. So, why let the hidden costs of unmanaged travel chip away at your company's bottom line when a more efficient and cost-effective solution is within reach?

Explore BNW Travel's VoyagePro to unlock the benefits of managed corporate travel.