In the past, corporate travel management has sought to help employees book the most affordable available business travel options — usually pre-arranged options filtered through set distribution channels, such as corporate travel agencies.
However, today’s corporate travelers and managed travel industry are seeing major changes. With technological innovation and competition from leisure travel offerings sometimes offering better value than current managed travel policies, business travelers may now find that the best travel value isn’t always available to them. Overall, these changes are creating a new paradigm for managed travel.
That shift has led to a philosophy often described as the “revolution” of corporate travel, called Managed Travel 2.0. The program enables travelers to shop and book travel anywhere on any safe suppliers, similar to how they might do for personal travel, provided that they are within an arranged budget. The program also allows companies to collect all transaction and travel data in real-time.
With greater traveller freedom, Managed Travel promises hopes of higher travel program satisfaction, greater adherence to travel policies and an improved employee engagement overall.
As a emerging trend in managing and booking corporate travel, this could be the next step for many corporate travel planners looking for less restrictive managed programs as well. According to a new 2014 Managed Travel Survey by global sales and marketing consulting firm ZS, Managed Travel 2.0 could be a valuable solution for at least one in five companies.
Ultimately, the program could benefit those buying business travel by altering the buyer/supplier relationship from contracts based on discounts, to more of a ‘collaboration’ that emphasizes choice and traveler satisfaction. According to the report, companies motivated to improve employee productivity and comfort and who already implement attractive policies for suppliers are prime candidates for switching to Managed Travel 2.0.
To learn more about the latest on business travel and business travel management trends, check in with us at Enville today!