If you're a small business, you may not have the same travel requirements as your bigger competitors, so the idea of investing in a heavy-duty travel management system may seem excessive. However, as your business grows, you may encounter some growing pains when it comes to business travel. This article will address those pains and provide an outline of the benefits of getting a travel management system sooner rather than later.
If you relate to two or more of these points, it might be time to consider the benefits of a travel management system that can grow as your business does.
As your business expands and your team starts traveling more often, the complexities of managing travel also increase. Booking changes, managing travel expenses, and keeping travel documents organised can quickly become a headache without a centralised travel strategy in place. A travel management system steps in to help solve these growing pains, and is a great opportunity for you to organize everything in one central place, saving time and increasing efficiency.
Smaller companies often don't have the luxury of having a dedicated travel manager or assistant to book and oversee business travel. This usually results in one of two scenarios - the business enlists the help of an expensive travel agent that charges exorbitant fees every time you book, or travel is left to each individual to book, which means you are left with little oversight of the budgets and even less control of expenses.
It's easy to overlook the need for a travel policy when you're a small business, because at first it's easier for employees to manage their travel themselves, and you work on the basis that everyone should spend reasonably on their flights and accommodation. But with employees coming from all employment backgrounds, what is "reasonable" may be different from person to person, so it can end up in chaos. Having a travel policy in place can quickly fix this, setting some reasonable guardrails for business travel spending.
In the early stages of your business, managing business travel might seem simple with just a few people traveling each year. But as your business grows, uncontrolled travel expenses can spiral out of control, especially with decentralised bookings and a no defined spending limits. A travel management system is your solution to regaining control and keeping budgets in check. This is a great opportunity to save money, and will give you the insights to anticipate future spending.
Small companies don’t always have dedicated resources to assess travel risks for their employees, which in turn makes it harder to keep them safe when they're traveling for work. A travel management system gets you access to many of the same tools and resources as larger organisations, making sure know about potential risks and can plan for them. With a travel management system in place, you can make sure that everyone is covered and that they're following the policy you have in place.
Pressure from employees, investors, stakeholders as well as new CSRD reporting standards has created a greater need for transparency and automated data collection. A travel management system will give you the tools to get an overview of all your company's trips, to save you the hassle of collecting pieces of information from separate booking sites. Climate-focused travel management systems like Goodwings will even help you collect, calculate and create an overview of your travel emissions data. If you need to start reporting in the next couple of years, a travel management system allows you to collect travel emission data immediately, since you'll need approximately one years' worth of data to create a baseline for your climate reporting.
Travel management systems have a lot to offer, and finding the right solution for your company can save you both time and money. Since many small to mid sized businesses have limited resources and time, the decision comes down to evaluating the risks and opportunities of having a system in place, as well as striking the right balance between covering your bases now and in the future. But what does travel management have to do with evaluating future risk and opportunities? A lot, actually.
Chances are you and your team are focused on short-term gains and needs. Yet, anticipating risks and opportunities can pave the way for efficiency, innovation, and cost-effectiveness.
For example, if your company's growth indicates potential travel expense challenges as the team expands, considering a travel management solution before reaching a certain team size is a strategic move. Likewise, laying the groundwork for future scalability and transparency in accounting and reporting with a steady flow of data now will secure you for future accounting and reporting demands. Looking ahead and getting ready for the journey is fundamental for SMEs aiming for steady and sustainable growth.