Global Travel Management: Benefits of Travel Consolidation
For most companies with an international presence, Travel and Expenses (T&E) are the 3rd largest indirect cost component of the total budget. Consolidating your travel management spend globally is not an easy process, but partnering with a global travel management company with a comprehensive understanding of what is realistic and taking cultural differences into account is the best advice for companies.
What are the strategic benefits of global travel consolidation?
1. Obtain insight on global travel spend for statistics and strategic management
2. Increase effectiveness, decrease total cost of ownership, and enhance travel department’s productivity figures
3. Apply consistent corporate policies and increase travel policy compliance
4. Improve control and truly benefit from global purchasing power
5. Utilize advanced technologies to track travelers and improve safety
6. Surprise your international travelers with excellent amenities
Mark van Iersel states, "A great paradox in global travel consolidation is that most of the goals listed above are driven by technology and automation.'' This is important, but have you ever realized how local country differences can impact the whole automation process? For example, for an agent in Japan to provide a full-service solution in air travel, they need multiple international air GDS’, plus at least three more for domestic air and rail. Is one of your goals driving online booking tool adoption? The average adoption rate in the Far East is approximately 5 to 10%.
Cultural customs and differences play a significant role, from business etiquette to negotiating supplier agreements. The most important topic to a meaningful multinational travel management program is embracing these differences and pursuing input and feedback from your local contacts.
Are you interested in exploring the benefits of a globally consolidated corporate travel program? For more information, please download the white paper.
