The Ultimate Guide to Corporate Travel Management for Australian Businesses

What Is Corporate Travel Management

First things first, what actually is corporate travel management? Corporate travel management is all about organising business trips in the smoothest, smartest way possible.

While it can be done internally, many businesses choose to outsource these services so everything is handled by professional travel agents. This includes organising flights, hotels, travel insurance, and even gaining access to automated expense tracking and analytics. 

It’s a great way to save time on planning, cut travel costs, and keep track of all your expenses under one roof. Plus, you’ll benefit from negotiated corporate travel rates and exclusive discounts. 

Who Needs Corporate Travel Management

Any business in Australia that travels regularly for work can gain massive value from corporate travel management.

For small businesses where every dollar counts, having visibility over every expense – and accessing discounted rates – can go a long way in helping you stretch your budget and make sure that every dollar works for you. Engaging in travel management services for small businesses is an effective solution to optimise costs and streamline travel operations.

For larger businesses where travel spending may be higher and more frequent, having a centralised system and access to round-the-clock support can help you keep travel costs and reporting from spiralling out of control. 

From small local businesses to large corporations with global offices, investing in a corporate travel management system pays off by helping you automate your processes, streamline expense tracking, and have real-time visibility over your budget.

Overall, corporate travel management can make a huge difference to your bottom line.

Benefits of a Corporate Travel Management Program

Although many businesses take on managing their own travel and expenses, partnering with a trusted corporate travel management company like Spencer Travel means you can finally enjoy a stress-free travel experience while saving yourself money and resources in the long run:

Here’s what that looks like:

• Have all your arrangements made for you, fuss-free. That includes flight times, commutes, hotel expenses, visas… the lot. 
• Save money by taking advantage of exclusive deals and discounted rates negotiated on your behalf!
• Leverage travel expense insights with real-time reporting on your spending. This will ultimately help you make smarter decisions, improve budgeting, and keep your internal management team in the loop about where exactly your money goes.
• Speak to a real person who’ll handle your case if anything goes wrong. With Spencer Travel, you’ll get access to 24/7 support.

How Much Does Corporate Travel Management Cost in Australia?

The cost of corporate travel management in Australia depends on several factors, including the size of your business and number of travellers.

It can be different whether you need a group travel agency,event and conference travel, or corporate incentive trips and how often your team travels, and what level of service you need.

While there is a fee for using a corporate travel management service like Spencer Travel, you’ll still cover your own expenses for flights, hotels, and other travel-related costs.

But here’s the good news – on average, businesses save 20 to 30% on total travel spend by switching to a managed solution. So not only are you saving yourself the fuss, but you’re also benefitting from having clear control over travel costs.

Common Challenges Australian Businesses Face Without Proper Corporate Travel Management

Did you know that almost 50% of Australian businesses fail to accurately record their travel and expense costs? Even worse, they often miss out on the opportunity to track and analyse where their money is going.

For businesses where travel expenses make up a significant portion of overall spending, a lack of control can turn into a serious issue. From flights and hotels to meals and ground transport, travel expenses pile up quickly. Without a clear system in place, companies risk overspending, missing out on savings, and facing financial losses that impact their bottom line.

But that’s not all – failing to manage corporate travel effectively can lead to poor financial reporting, inaccurate budgeting, and challenges when calculating profit margins. Plus, since travel expenses are often tax-deductible, improper tracking could mean missing out on deductions.

Here are some of the most common challenges businesses face without a proper corporate travel management system:

Manual processes

Relying on spreadsheets, emails, and paper receipts for managing travel expenses is inefficient and often leads to errors. Manual data entry increases the risk of mistakes, delays employee expense approvals, and information goes missing. It also takes up valuable time that employees could spend on higher-priority tasks.

Complicated Approval Workflows

Without a streamlined approval process, businesses often face wasted time. Travel requests may sit in inboxes for days, delaying bookings and causing missed opportunities for better rates. A lack of visibility can also lead to out-of-policy bookings, which creates further complications.

Poor Expense Tracking

Without centralised expense tracking systems, it’s nearly impossible to get a clear view of your travel spend. Many businesses struggle to monitor expenses in real time, leading to inaccurate reports and difficulty controlling budgets. This lack of transparency can also make it harder to negotiate better deals with vendors and end up being more expensive in the long run.

Bad Employee Experience

Employees who frequently travel for work often face frustrations with disjointed booking systems, unclear policies, and slow reimbursement processes. Without adequate support or a simple way to submit expenses, both productivity and employee satisfaction take a hit.

Higher Costs

Many businesses fail to take advantage of negotiated rates and optimised booking strategies, meaning they pay more for flights, hotels, and other expenses. Additionally, a lack of policy enforcement can lead to overspending, and employees may unintentionally book premium services that may not align with company budgets.

Risk of Fraud

Without a clear system for tracking and verifying expenses, fraudulent claims are harder to detect. Employees may submit duplicate or inflated claims, whether intentionally or accidentally. Businesses that lack proper oversight leave themselves vulnerable to financial loss and compliance issues.

The Process of Expense Management in Corporate Travel

As discussed, one of the biggest struggles for businesses is not having a streamlined system for expense tracking, particularly when it comes to corporate travel. Engaging with third-party corporate travel management companies and automated systems make expense management easy and simple. Here’s an example of how expense tracking can work with an automated system:

1. Placing a Travel Request

When employees need to make a travel request, they can do it through a centralised platform, such as the one used by Spencer Travel. Here, they can provide details of travel dates, their destination, the purpose of their visit, and the estimated costs.

2. Travel Approval

The request is instantly routed to the designated approver (for example, a manager, team lead, or the finance team). These platforms often feature built-in policy controls, and approvals can be made quickly and transparently.

3. Expense Report

After the trip, employees can submit a digital expense report with itemised costs – including flights, accommodation, meals, transport, and incidentals. Their receipts are uploaded directly into the system for easy tracking.

4. Approvals and Reimbursement

Managers or finance teams can review and approve the claims easily. Once approved, reimbursements are processed quickly and securely. Employees will also be notified when payments are on the way.

How to Choose the Best Corporate Travel Management Option for You

Now that you understand what corporate travel management is and how beneficial it can be, you may be wondering how to choose the best option for your business. Here are some important things to consider before you choose the right one:

1. Look for Proven Expertise: Experience goes a long way in the business world, that’s why it’s ideal to partner with a leading expert in corporate travel management. Their industry knowledge should enable you to handle corporate travel seamlessly.
2. Make Sure Specific Needs Are Met: There is never a one-size-fits-all solution to corporate travel. Choose a provider like Spencer Travel that offers tailored solutions that address your specific needs.
3. Check for 24/7 Support: Travel doesn’t stick to business hours. Try finding a company that offers round-the-clock support to assist your travellers when unexpected changes arise.
4. Look for Cost-Saving Opportunities: A strong corporate travel manager will negotiate exclusive rates for flights, hotels, and transport. Access to discounts and cost control measures can significantly reduce your overall travel expenses.