Managing business travel effectively is more important than ever, especially as companies increase the amount of travel they’re doing post-pandemic. At Roomex, we know travel management involves more than just making bookings it’s about overseeing every expense, adhering to policy compliance and maintaining smooth operations. 

Remember, business travel isn’t supposed to be a chore and there are rewards within the routine. To set you up for success, we’ve created this blog to tackle the top five travel management challenges and offer practical ways to manage costs, enforce policies and streamline your processes.

From cutting travel costs to finding clever ways to make staff stick to the rules, we’re here to offer you practical tips to simplify travel processes and trim unnecessary expenses without sacrificing safety, standards or convenience for your travellers. Getting a grip on these challenges and learning how to handle them will give you the confidence to make intelligent decisions that benefit your whole organisation.

Challenge 1: How to reduce business travel expenses

Keeping travel costs in check is a huge challenge within business travel management. Airfare and hotel prices are constantly changing, meaning companies need smart ways to manage spending without skimping on the quality of travel. 

According to the Global Business Travel Association, worldwide business travel spending is expected to reach a whopping $1.5 trillion in 2024, beating pre-pandemic levels for the first time. While global spending is climbing, Europe’s investment in business travel isn’t expected to catch up to 2019 levels until 2025. 

In 2024, Europe’s spending is projected to be about $389.1 billion and rise to $414.9 billion the following year. Europe remains a major player, accounting for nearly a quarter of global business travel spend.

Keeping up with fluctuating travel expenses can be challenging. However, we’ve got some innovative strategies to help keep your costs down without compromising quality:

• Negotiate corporate rates: Team up with your favourite airlines and hotels to lock in lower prices. Long-term deals with these partners can really make a difference.
• Use expense-management software: Keep an eye on your spending using tools that show where every penny goes. An expense-management system can also flag when you’re about to overspend and make sure everyone’s sticking to the travel rules.
• Adopt a centralised booking system: Book all your travel in one place. It’s easier to track, and bundling your bookings often helps you snag better deals. RoomexStay makes it easy to handle all your hotel bookings and payments in one spot, so you can score better rates and manage everything more smoothly, helping to cut down on travel costs.

Challenge 2: Ensuring policy compliance across the board

Making sure everyone sticks to travel policies is key to managing travel smoothly. This makes booking more straightforward, keeps costs down and reduces the risk of monetary mix-ups. But how to get everyone on board? This can prove tricky, especially in large companies where reps are spread across the globe.

Here are some practical tips to help keep everyone on track and compliant:

• Implement clear travel policies: It’s super important to have a travel policy that’s straightforward and easy for everyone to get their hands on.
• Regular training and updates: Running regular training sessions and refreshers helps to keep everyone clued up on the policies, boosting compliance.
• Technology integration: Using tech that plugs travel rules right into the booking tools means employees only see options that align with the policy. RoomexAnalytics can provide real-time data on policy compliance, helping managers monitor adherence and adjust policies as needed.

Challenge 3: Managing travel during peak seasons

Booking travel during peak times may mean limited availability, often leading to stress and less-than-ideal itineraries. Peak travel times typically coincide with major holidays, industry conferences and large-scale events, leading to heightened demand for flights and accommodation. This surge inflates prices and restricts options, forcing companies to contend with inadequate travel arrangements that may not suit their schedules or budgets.

Here are a few ways to handle the busiest travel periods without breaking a sweat:

• Advance planning: Getting everyone to book their trips early is a real game-changer. It locks in some sweet deals and opens up way more options. This way, you’re not stuck choosing from the leftovers!
• Flexible travel policies: Being flexible with travel can pay off. Shifting your travel dates and times to avoid the rush means you can snag some great off-peak prices.
• Alternative accommodation: Mixing things up with serviced apartments or corporate housing can be a smart move during busy seasons. These often come with better prices than traditional hotels, stretching your travel budget further when everyone else is also on the move.

Challenge 4: Reducing non-compliant spending during business trips

Unsanctioned spending can sometimes get out of hand when there aren’t enough checks in place. This usually occurs when employees book a business trip through unapproved channels, bump themselves up to fancier flights or hotels without the OK, or splash out on extras like luxury car hires or gourmet meals. You can hardly blame them for trying! But keeping an eye on this kind of spending is crucial to avoiding budget blowouts.

Tackling unsanctioned spending requires a solid plan to keep everything in check. Here are some practical ways to help you keep spending on track and within policy:

• Tighten approval workflows: By making the approval process for travel expenses quicker and stricter, you’ll cut down on rogue spending. It’s all about making sure every penny spent is checked and double-checked.
• Real-time expense monitoring: Using tech that monitors expenses in real-time can save you a lot of headaches further down the road. It’s like having a smart assistant that flags any suspicious spending right when it happens. This helps you nip any policy issues in the bud before they escalate.
• Employee accountability programs: Think about setting up reward schemes that celebrate those who stick to the rules and offer support to guide anyone straying back on track. It’s about creating a positive atmosphere where everyone aims to stick to the guidelines, not just out of obligation but because it feels good to be recognised for doing the right thing.

For more information, you can take a look at our blog post on Expense Excellence: Navigating the Challenges of Waste and Fraud.

Challenge 5: Streamlining expense reporting and reimbursement

When expense reports and reimbursements lag, it can frustrate employees and affect financial planning. It’s vital to handle these processes quickly and accurately to keep everyone happy and ensure the company’s financial operations run without a hitch. Delays can cause a ripple effect, creating issues in different parts of the company.

Let’s look at some effective strategies to make reporting expenses and getting reimbursements as smooth as possible: 

• Automated expense reporting tools: Implement tools that simplify submitting and approving expense reports. 
• Mobile access: Provide platforms that allow travellers to report expenses on the go, speeding up the process.
• Regular audits: Conducting regular audits assists with compliance and helps identify areas for improvement in the expense reporting process.

Is your current process really as cost-effective as it could be? Roomex offers a free ROI calculator template that helps you quantify both the direct monetary costs and the indirect costs in terms of time spent on processing expense reports. 

On average, companies spend 26 days a year and £45,120 on these activities. With our easy-to-use templates, you can calculate exactly how much time and money your company spends on filing, approving and reviewing expense claims. 

For even more control and carefree travel management, RoomexPay simplifies the expense reporting process by integrating a pre-paid, fully controlled payment system that reduces the need for manual expense reporting and speeds up reimbursements.

Wrapping up

Managing business travel doesn’t have to be a hassle. Here at Roomex, we’ve tackled the top five travel management challenges head-on, offering you smart, practical tips to cut costs, stick to the rules and smooth out your processes.

The landscape of business travel is constantly evolving. That’s why we continuously update our services and features to stay ahead of the curve, providing you with innovative solutions that cater to the dynamic nature of today’s corporate travel demands. Whether it’s leveraging advanced analytics to better understand your travel spend or utilising our Duty of Care map for better traveller safety, our tools are tailored to help you manage every detail with precision.

Interested in more tips and tricks for efficient travel management? Keep an eye on our blog for the latest strategies and solutions. For a real-time rundown of what our booking platform can do for your business travel needs, book a personalised demo.