Speaking at the National Business Travel Association (NBTA) conference today, GetThere President Jeff Palmer described how travel management remains the best method for minimizing travel costs in large corporations. Palmer discussed how online technology is already playing a key role in companies by supporting managed travel programs, but that some new online options have caused confusion among corporate travelers and executives.
"These days, travelers sometimes find one good travel deal outside the managed corporate program, and suddenly question the value of the whole program," Palmer said to the 4,000 attendees at the conference.
Palmer, who is president of the largest provider of online travel solutions to Fortune 500 companies, indicated that online needs to work in conjunction with a well planned managed travel program.
"Some travelers and management may erroneously jump to the conclusion that new leisure-driven travel options can replace managed travel; believing that unmanaged travel is more cost-effective than a managed program. Many don't realize how much cost savings online systems are already delivering to corporations when they complement the managed travel program," added Palmer.
Palmer pointed out to the audience how online is changing corporate travel, presenting new challenges and opportunities. Large corporations should maintain a procurement-led travel management model, but can also take advantage of some new discounted travel products.
Delivering Value Through Corporate Travel Management
The speech also emphasized four areas in which travel managers can continue to provide value to corporations:
-- Deliver convenience, service, and the best travel alternatives to employees, and look out for each employee's safety when he or she travels on business; -- Understand unique corporate requirements, and the ability to build and tailor a travel program that fits each company, and its travel patterns; -- Act as financial manager responsible for managing one of a company's largest indirect expenses, and select travel policies that keep employees productive, while protecting the bottom line; -- Offer procurement expertise for one of the most complex purchases in a company -- travel.
Palmer closed by emphasizing that travel professionals and company management need to spend more time evaluating their company's unique demands and evaluating where opportunities exist to achieve even greater cost savings, while providing the best possible service to travelers.
"Online is radically transforming the landscape of corporate travel, and many companies are already achieving significant cost savings through technology. Now, it will take cooperation and understanding throughout a company to take advantage of new opportunities, while maintaining proven travel management practices that are delivering billions of dollars in savings to companies' bottom line." |