How Automation Transforms the Business Travel Landscape

Technology has become an integral part of everyday life, so it’s no surprise that business travellers expect the same level of access when travelling for work.

Corporate travel automation is a key aspect of this transformation, making it simple for travelers to keep track of their expenses and companies to gain insight into spending patterns. In turn, businesses save money and time while improving their bottom lines.

Better Data Collection

Data collection through automation can make business travel simpler and more economical. Companies can monitor spend to identify areas for improvement with real-time tracking and reporting.

Automating travel and expense (T&E) processes can assist in resolving challenges such as duty of care, employee expectations, and compliance requirements. Integrating T&E with accounting and finance systems means all bookings and spending data can be viewed in one central location for ease of management.

Recently, more and more Travel Management Companies (TMCs) are migrating away from GDS-provided profile systems to create their own internal systems for managing traveler profiles. Companies such as American Express Global Business Travel, BCD Travel and CWT have all taken this step.

Some TMCs have joined forces with third-party analytics specialists to access additional data sources for analysis, such as International Air Transport Association and STR hotel market information. These new tools are tailored towards midmarket and larger travel programs.

Better Reporting

In an age when most corporate travel is now remote or hybrid, T&E managers must reimagine their policies to stay ahead of the competition. Deloitte’s Why We Fly Matrix categorizes use cases according to two criteria: their relative importance for business success and whether face-to-face interaction remains necessary versus can be replaced by technology (figure 1).

A well-automated business travel landscape gives companies access to better data that allows them to make informed decisions. From booking flights and collecting expenses to analyzing yearly statistics, automation simplifies these tasks and frees up staff members for other more strategic needs.

Better Visibility into Spending Patterns

Many companies find travel and expense management to be a time-consuming, laborious task. A modern travel and expense management solution automates these tedious chores, giving employees more time to focus on more crucial business objectives.

Gaining insight into spending patterns helps businesses identify cost-saving opportunities and mitigate fraud and other threats. Furthermore, it gives them a comprehensive view of company expenses–including those of competitors–which may serve as an indication of business health.

Finance teams typically find the most efficient travel and expense management solution to be one that allows employees to track their spending in real-time, especially for those working remotely or with flexible schedules. An automated system that collects all expenses in one place will be ideal, plus it should be scalable enough to suit any size organization’s requirements.

Better Compliance

Automation of business travel makes it simpler for compliance teams to manage risk and prevent policy breaches. With the right solution, managers can quickly spot trends that could indicate non-compliance and create a plan for remediation.

Automation can assist with the management of Posted Workers Directive compliance, as well as guaranteeing employees who work abroad have access to the correct visas and permits. Furthermore, automation helps assess and contain tax and payroll risks caused by distributed workforces.

The COVID-19 pandemic has expedited most companies’ automation plans, and consumers are becoming more accepting of automated processes as they become accustomed to social distancing and digital interaction during lockdown periods.

Automation can simplify payment controls, expedite audits and eliminate mistakes to boost compliance. But compliance teams require tools that empower employees with a culture of compliance that permeates all departments and processes.