Transforming corporate managed travel: 5 key challenges and strategic solutions for modern demands

TRANSFORMING CORPORATE MANAGED TRAVEL:
5 KEY CHALLENGES AND STRATEGIC SOLUTIONS FOR MODERN DEMANDS

The managed travel landscape is significantly changing, influenced by evolving traveler expectations, technological advancements, and the growing complexity of corporate travel management. Traditional managed travel systems need to evolve to keep up with the changing demand of a new generation of travelers seeking personalized, seamless experiences.

In response, corporate travel program managers should assess strategic, tech-driven solutions to meet current demands and maintain adaptability for future changes, making sure travel departments are future ready.

5 KEY CHALLENGES CORPORATE MANAGED TRAVEL NEEDS TO SOLVE

The bar is higher than ever. Today’s travelers want digital self-service for seamless, sustainable, and enjoyable journeys. They crave diversity, from boutique hotels to eco-friendly stays, demanding standout lodging experiences. It’s crucial for corporate travel programs to match this demand with varied, above-standard choices. Traditional systems struggle to provide this level of service, leaving travelers frustrated and seeking alternatives.

The corporate travel ecosystem has grown more complex with the addition of new categories like meetings, and co-working spaces that need to be managed effectively. Modern corporate travel management needs to address all categories used to gain control over spend and risk and to enhance the travel experience end-to-end. Today, about 50% of the overall travel spend cannot be integrated into the legacy monolithic systems.

Good decisions depend on good data. When our data is incomplete, duplicated, erroneous, or dubious, our decision-making suffers. This impacts not just compliance but also strategic choices. And while AI offers significant opportunities to streamline operations, its effectiveness is highly affected by and needs to be fed with comprehensive high-quality data. That is why we need interconnected systems that share data seamlessly to build a solid database, aiming to overcome traditional systems limitations.

Relying on Global Distribution Systems (GDS) and their suppliers restricts optimization potential as it only represents 25% of all available global content options. Manual offline processes are a drag, hindering the ability to capitalize on new opportunities and efficiency gains. While GDS provide the baseline for hotel distribution in a traditional TMC setup, the potential for optimization and better experiences lies in the extension outside GDS content.

These aspects are critical to bring corporate managed travel to the next stage, enabling automation, real-time optimization and an enhanced end-to-end traveler experience.

STRATEGIC SOLUTIONS FOR MODERN TRAVELER & BUSINESS DEMANDS

From Travel Managers to Travel CEOs: Embrace the Potential of New Technologies

Travel managers can step up and actively shape the ecosystem, coordinating with partners to excel within their respective corridors. This expanded, more strategic role positions travel managers as the chief executives of corporate travel within their organizations. At the heart of this responsibility lies the need to leverage new technologies, such as Lodging-as-a-Service (LaaS), for smarter, data-driven decisions. Such a strategic shift can cut costs, anticipate and capitalize on market developments, and secure the travel department’s long-term value. The good thing: It’s not a long-term integration project that is already eating up scarce resources and time. Our API-driven Lodging-as-a-Service platform effortlessly integrates into your existing travel ecosystem to complement and elevate your current OBE, TMC, and payment processes, offering a unified and enhanced travel management experience and enabling end-to-end automation and AI.

Lodging-as-a-Service: The Game Changer

Lodging-as-a-Service (LaaS) is revolutionizing corporate travel management, offering sustainable and seamless travel experiences through real-time data and AI. Our Procure-to-Reclaim model breaks down data silos and delivers unparalleled Level 3 data quality for complete transparency. This grants the insights necessary to refine your corporate travel strategy—lowering costs, boosting performance, increasing employee satisfaction, and enhancing risk management. From end-to-end, we’re digitizing processes to meet modern expectations and expanding lodging options well beyond the confines of traditional GDS systems. LaaS transforms corporate travel management into a more customized, efficient, sustainable, compliant, and intelligent operation, empowering you to meet the challenges of today while being prepared for the challenges of tomorrow.

An End-to-End Solution That Puts Travelers First

Adopting a Lodging-as-a-Service (LaaS) solution is more than just an upgrade in technology; it marks a strategic pivot toward putting travelers at the heart of every decision. This method enriches the entire travel experience, not just by simplifying bookings but by tailoring journeys to each traveler’s preferences from start to end. With LaaS, you’re equipped with a powerful platform that continuously feeds data to fine-tune your travel strategies. The shift to attribute-based buying and selling allows for a precise match between travel options and travelers’ desires, aligning with both their preferences as well as your business and sustainability objectives. This approach not only boosts satisfaction but also encourages adherence to travel policies, making your job easier and your travel program primed to deliver end-to-end excellence.

Are You Ready to Embrace Strategic, Tech-Driven Corporate Travel Management?

The writing is on the wall: traditional approaches to corporate travel management will no longer cut it. By prioritizing traveler needs and embracing cutting-edge technology like LaaS, corporate travel leaders can transform their programs into strategic assets — efficient, sustainable, and competitive.