For many small and medium-sized businesses, travel bookings are managed informally, often resulting in hidden costs and inefficiencies. Employees book their own flights, rail journeys and hotels, managers approve expenses, and travel arrangements are often made on an ad hoc basis.
While this approach may seem simple and convenient, it can lead to a range of business issues that are easy to overlook. From higher travel spend and lost productivity to increased administration and reduced visibility. Unmanaged corporate travel can have a bigger impact on your business than you might realise.
If your employees are making travel bookings independently, you could be missing opportunities to save money, improve efficiency and better support your travellers. Here are three warning signs that your current approach may be costing your business more than you think. And, what you can do to prevent it.
1. Hidden costs from travel seem to be increasing, but you’re not sure why
Many SMEs don’t have a central view of travel spending. Instead, costs are spread across company cards, expense claims and invoices, making it difficult to understand exactly what’s being spent and where.
As a result, employees may be paying different prices for the same journeys, booking at short notice or choosing suppliers that don’t offer the best value.
The business impact
- Higher travel costs than necessary
- Limited visibility of travel spend
- Difficulty budgeting and forecasting
- Missed opportunities to negotiate better rates
What to do
Centralising bookings via a managed travel programme gives you a clearer view of spend and limits hidden costs. It also helps employees access cost-effective travel options from the outset.
2. You’re relying on expense claims to understand travel activity
If the first time you learn about a business trip is when an expense claim lands on your desk, there may be a visibility problem. Many SME leaders assume they know where employees are travelling, but when bookings are made independently, there is often no central record of travel plans.
Beyond controlling costs, businesses also have a responsibility to understand where employees are travelling and how to support them if disruption occurs. The Global Business Travel Association (GBTA) highlights traveller tracking and travel risk management as key components of an effective business travel programme.
This lack of visibility can become particularly challenging when disruption occurs or an employee requires support while travelling.
The business impact
- Limited oversight of employee travel
- Difficulty locating travellers during disruption
- More administration and hidden costs for finance teams
- Increased risk if unexpected issues arise
What to do
A managed travel solution provides a central record of bookings, making it easier to know who is travelling and support them when needed.
3. Employees say booking travel is frustrating
When employees struggle to find suitable travel options, they will often look elsewhere. This isn’t usually an act of non-compliance. More often, they’re simply trying to do their job efficiently.
If employees are spending time searching multiple websites, comparing prices and managing bookings themselves, productivity can suffer.
The business impact
- Time lost searching for travel options
- Inconsistent booking decisions
- Employee frustration
- Reduced productivity
What to do
Providing employees with access to expert travel support and easy-to-use booking tools helps remove frustration and saves valuable time.
Small inefficiencies and hidden costs can add up quickly
For a growing business, unmanaged travel often starts as a minor inconvenience. Over time, however, it can lead to higher costs, increased administration and reduced visibility.
The goal isn’t to impose complex travel policies. It’s to make business travel easier, more cost-effective and more manageable. For both employees and the business.
How MIDAS Travel can help
At MIDAS Travel, we help SMEs take control of business travel without adding complexity.
Whether you’re looking for better visibility of travel spend, support for your travellers or a simpler way to manage bookings, our team can help create a travel programme that works for your business.
USEFUL LINKS
- Business Travel Blog – MIDAS Travel Website
- Does your SME need a travel management company? – MIDAS Travel blog
- Travel risk overview – GBTA
