Whether your workforce is on-site, hybrid, or fully remote with one or two hubs, regular in-person meet-ups are essential. "Studies show that regular in-person meet-ups can drive over 50% of positive changes in communication patterns. Research published in Human Relations suggests that structured social interactions enhance speaking dynamics and collaboration, leading to greater team effectiveness (SAGE Journals, 2023).
While in-person meetings are essential for building relationships among globally distributed teams and fostering client connections, managing corporate travel is universally loathed. For organizations with over 4,000-5,000 employees, hiring a dedicated travel manager becomes inevitable. However, for SMEs and mid-market companies, the burden often falls on a mix of finance teams, people teams, and office managers, leading to frustration and inefficiency.
Finance teams collaborate with people teams to create travel guidelines. The latter, in turn, must ensure adherence to these guidelines or take on the tedious task of booking travel for everyone. Alternatively, office managers—originally hired to manage office operations—may find themselves unexpectedly tasked with coordinating company-wide travel. But beyond deciding who handles bookings, the challenges of managing corporate travel are plentiful and demand serious attention.
Booking Tools: Convenience, Budgeting, and Customer Experience
As your organization grows and you need to focus on how to decrease travel expenses as they start spiralling, you might turn to corporate travel management tools like Navan or TravelPerk. At first, these platforms appear to simplify everything: you can integrate your travel policy and team members can book their trips independently. Problem solved, right?
Not quite. Soon, you may notice discrepancies. Customers of ours pointed out that prices on these platforms are often significantly higher than booking directly. These platforms seem to be transiting to a convenience tool rather than the cost reduction tool it started out as. (Disclaimer; this is my personal opinion, formed from anecdotes of People teams we spoke to).
Customer service is another common pain point. When things go wrong, users often struggle to reach someone who can resolve their issue. Even when you do get through, accountability is passed around—from the tool’s support team to the airline, hotel, or online travel agency (OTA) and back again.
Skyrocketing Travel Costs vs. the Need for In-Person Meetings
However, rising travel costs make these meetups increasingly expensive. “Since 2020, average nightly hotel rates in the US and Europe have increased by 24-30%, outpacing general inflation, which was around 18% over the same period” (Hotel Managment Network, 2023). Corporate travel costs specifically are growing at 10% annually, with no signs of slowing down(Hotel Managment Network, 2023).
Finance leaders are under pressure to maximize value, but office managers often report that their efforts to cut costs backfire. At my previous workplace, a globally distributed remote start-up, the people team organized the annual company meetup. The result? Team members were placed in three-bedroom Airbnbs an hour and a half outside the city, with no discretion over who they shared rooms with.
Solutions to Simplify Corporate Travel
While no solution is perfect, the following strategies can make corporate travel management significantly easier:
- Book Directly:Booking directly with hotels or airlines can save 15-20% compared to using corporate travel platforms, which often white-label OTA services like Booking.com and add fees. Temporary virtual cards from providers like Spendesk or Pleo can streamline payments while adhering to your guidelines. Empower team leaders to book for their teams within budget.
- Opt for Aparthotels:Aparthotels often provide better value for group travel. A three-bedroom apartment with en suite bathrooms in a major city can be 20-40% cheaper than booking three separate hotel rooms. Reach out to aparthotel providers directly to negotiate corporate rates, which can be 20-30% lower than booking through an OTA.
- Explore Alternative Accommodations: Roamr for Work allows employees to stay with colleagues (or a friend), bypassing expensive hotel costs. Employees earn money for hosting their colleagues while travelling team members earn for choosing to stay with a colleague instead of booking a hotel or Airbnb. For example, sending an employee from London to San Francisco for two weeks might typically cost $6,000. With Roamr, the employee could stay with a colleague (or friend), earning $2,000 as a host incentive. The traveller earns $2,000 for choosing to use Roamr over a hotel, and the company saves $2,000. It’s a win-win-win scenario.
Corporate travel doesn’t have to be a headache. By exploring these strategies, organizations can reduce costs, enhance employee satisfaction, and build stronger team connections—all without sacrificing the benefits of in-person interactions.
