Corporate travel management
Encyclopedia
Travel management or corporate travel management (CTM) is the function of managing a company’s strategic approach to travel (travel policy), the negotiations with all vendors, day-today operation of the corporate travel program, traveller safety
& security, credit-card management and T&E data management. CTM should not be confused with the work of a traditional Travel Agency. While agencies provide the day-to-day travel services to corporate clients, they are the implementing arm of what the corporation has negotiated and put forth in policy. In other words CTM decides on the class of service that employees are allowed to fly, negotiate corporate fares/rates with airlines and hotels as well as set forth the use of the corporate credit card. The agency on the other hand makes the actual reservation within the parameters given by the corporation.
For most companies “travel & expenses” (T&E) costs represent the second highest controllable annual expense, exceeded only by salary & benefits, and is commonly higher than IT and/or real estate costs. T&E costs are not only limited to travel (airline
, rail
, hotel
, car rental
, ferry/boat, etc.) but include all costs incurred during travel such as staff & client meals, taxi fares, gratuities, client gifts, supplies (office supplies and/or services), etc. Furthermore this area often included meeting management, traveller safety & security as well as credit card
and overall travel data management.
The management of these costs are usually handled by the Corporate Travel Manager, a function that can be part of the Finance
, HR
, Procurement
or Administrative Services Department. As this function touches on all of these areas in some form and represents such a major corporate expense, it stand to reason that this function should have equal ranking within a corporation as any other major division and not be seen as a sub-set of existing departments.
Safety
Safety is the state of being "safe" , the condition of being protected against physical, social, spiritual, financial, political, emotional, occupational, psychological, educational or other types or consequences of failure, damage, error, accidents, harm or any other event which could be...
& security, credit-card management and T&E data management. CTM should not be confused with the work of a traditional Travel Agency. While agencies provide the day-to-day travel services to corporate clients, they are the implementing arm of what the corporation has negotiated and put forth in policy. In other words CTM decides on the class of service that employees are allowed to fly, negotiate corporate fares/rates with airlines and hotels as well as set forth the use of the corporate credit card. The agency on the other hand makes the actual reservation within the parameters given by the corporation.
For most companies “travel & expenses” (T&E) costs represent the second highest controllable annual expense, exceeded only by salary & benefits, and is commonly higher than IT and/or real estate costs. T&E costs are not only limited to travel (airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
, rail
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
, hotel
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
, car rental
Car rental
A car rental or car hire agency is a company that rents automobiles for short periods of time for a fee...
, ferry/boat, etc.) but include all costs incurred during travel such as staff & client meals, taxi fares, gratuities, client gifts, supplies (office supplies and/or services), etc. Furthermore this area often included meeting management, traveller safety & security as well as credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
and overall travel data management.
The management of these costs are usually handled by the Corporate Travel Manager, a function that can be part of the Finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, HR
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
, Procurement
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
or Administrative Services Department. As this function touches on all of these areas in some form and represents such a major corporate expense, it stand to reason that this function should have equal ranking within a corporation as any other major division and not be seen as a sub-set of existing departments.
Travel Management (Trade) Organizations
- Association of Corporate Travel ExecutivesAssociation of Corporate Travel ExecutivesThe Association of Corporate Travel Executives is a not-for-profit professional association of business travel stakeholders throughout the world. The ACTE purpose is to advance the interests of the corporate business travel industry, to promote industry networking opportunities and to educate...
acte.org - National Business Travel Association
- Business Travel Management & Leisure Trips in India