In today’s fast-paced business environment, companies rely heavily on corporate travel to foster relationships, close deals, and explore new markets. However, the true cost of business travel can go beyond flight tickets and hotel stays. When corporate travel is unmanaged or poorly managed, businesses may face hidden costs that can quickly add up, impacting both the bottom line and overall operational efficiency.
Here's an outline of the financial, operational and safety risks associated with unmanaged business travel, and how partnering with a corporate travel agent can mitigate these challenges.
One of the biggest financial dangers of unmanaged business travel is the lack of control over spending. When employees book their own flights, hotels and rental cars without oversight, the result is often inconsistent and inflated costs. Here’s how these expenses can spiral out of control:
Companies that don’t centralise their travel through a dedicated corporate travel agent often miss out on volume discounts. Corporate travel agents negotiate favourable rates with airlines, hotels and car rental companies based on the company's travel volume. Without this expertise, businesses inevitably overpay for every aspect of every trip.
Employees booking through various platforms at different times results in unpredictable pricing. Last-minute bookings typically come with higher rates, and companies lose the ability to forecast or manage their travel budget effectively.
Expense reports for business trips are notoriously difficult to track, especially when employees make purchases out of pocket and fail to submit receipts. These unclaimed expenses translate into lost money for the company, impacting profitability.
Without a defined corporate travel policy, employees may opt for more expensive flights or luxury accommodations that don’t align with the company’s budget expectations. Poorly managed travel often leads to non-compliance with company policy, further driving up costs.
Unmanaged travel doesn’t just hit your finances—it also creates operational inefficiencies that can slow down business and hinder productivity. Here are the key operational risks businesses face when corporate travel lacks structure:
When employees are left to book their own travel, it pulls them away from their core responsibilities. Hours spent comparing flight prices, searching for suitable hotels and managing itineraries add up. A corporate travel agent streamlines this process by providing booking assistance, allowing employees to focus on their work rather than logistics.
In unmanaged systems tracking who is travelling, where they are going, and how much is being spent becomes challenging. This lack of visibility makes it nearly impossible to create meaningful reports that can be used to optimise travel policies and budgets.
Without a centralised travel system, the reconciliation of travel expenses becomes a lengthy and error-prone task. This leads to inefficiencies in managing company finances, delaying reimbursements and reducing transparency in travel costs.
Employees are likely to experience inconsistent levels of service, particularly with regard to accommodation and transportation quality. This can lead to dissatisfaction that will inevitably negatively impact the company’s travel culture, making it harder to retain top talent who frequently travel for work.
In today’s globalised world, businesses have a responsibility to ensure the safety and well-being of their travelling employees, referred to as "Duty of Care". Failing to manage business travel effectively can put employees at risk and expose the company to legal liabilities. Here’s how unmanaged travel can compromise employee safety:
Unmanaged travel often means that companies have no way of assessing the risk of specific destinations or providing real-time travel alerts in the event of emergencies. Whether it’s natural disasters, political unrest, or health emergencies, companies must ensure that travellers are informed and prepared.
In the event of an emergency, companies need to know the whereabouts of their employees. Without a centralised travel management system, keeping track of employee locations becomes extremely difficult, compromising both employee safety and the company’s legal responsibility.
From flight cancellations to lost passports, disruptions can create significant stress for travellers. Unmanaged travel leaves employees on their own to deal with these issues, impacting both their well-being and productivity. A corporate travel agent offers 24/7 support, ensuring employees have someone to turn to in the event of an emergency.
Without structured travel policies, employees might end up on gruelling travel schedules with no regard for their well-being. Excessive layovers, lack of comfortable accommodation and poorly planned itineraries can result in traveller fatigue, leading to decreased productivity and increased turnover.
The hidden costs of unmanaged business travel can take a significant toll on your company, but there’s a solution. A corporate travel agent can help streamline business travel by providing a structured approach to bookings, compliance, and safety. Here’s how they mitigate the risks:
Corporate travel agents negotiate better deals with airlines, hotels and car rental companies based on your company’s travel needs. They also ensure that employees adhere to the corporate travel policy, eliminating unnecessary expenses and maximising savings.
With a corporate travel agent, all bookings are handled through a single platform. This allows businesses to track travel data in real time, create detailed reports and optimise their travel budget.
Corporate travel agents provide risk assessments for destinations and real-time updates on travel disruptions. They track employees’ locations and offer 24/7 support to handle emergencies, ensuring your company fulfils its Duty of Care.
By offering personalised service and expert guidance, corporate travel agents ensure a smoother travel experience for your employees, reducing stress and fatigue and increasing productivity during business trips.
Unmanaged business travel may seem like a convenient "quick fix", but it comes with hidden financial, operational, and safety risks that can affect your company’s bottom line and employee well-being. By partnering with a corporate travel agent, you can regain control over your travel programme, minimise risks and create a more efficient and cost-effective system.
Investing in professional travel management doesn’t just protect your business — it also provides peace of mind for your travelling employees, ensuring that they can focus on their work while staying safe and supported.
Sure Corporate is a division of the Sure Travel Group, the oldest travel agency consortium in southern Africa. All Sure Corporate travel agencies are expertly positioned to manage corporate clients’ every need, focusing on cost reduction and efficiencies across all travel management tiers. Book an obligation-free appointment with a Sure Corporate consultant to find out how our corporate travel agencies can streamline your company’s business travel.
