A growing number of small and medium enterprises are looking for right-sized travel solutions
Fortune 500 companies are obviously big players in corporate travel, but they’re far from the only game in town. Small and medium enterprise travel actually constitutes a huge segment of the market, and many of these SMEs are looking for travel management companies geared toward their size. So just what should these programs expect from a TMC, especially those who are tailoring their offerings to the SME market?
Expectations for any TMC depend on its approach and strategic direction, according to Tim Fleming, president and COO of Travel and Transport. He notes the definition of what constitutes an SME varies within a range of $1-5 million in travel spend, with his firm viewing it as one to two million.
Small and mid-sized companies with leakage in their travel programs will generally benefit from the services of a TMC, Fleming says. These might range from helping pull in rogue spend to dealing with duty of care, all aided by increasingly advanced technology. “It used to be that the corporation controlled everything,” he says. “Now travelers expect the same experience on the corporate side as the consumer.”
Fleming adds that for companies where oversight of travel has historically been in an area such as HR or procurement rather than a separate function, a managed travel program takes the friction out of the travel process. “For example, travelers might get an alert that a major storm is coming with advice to connect with an agent,” he says. “That kind of work is a material change from where we were five years ago.”
One advantage of larger TMCs have is using their buying power to negotiate pre-packaged discounted deals with air, hotel and car rental suppliers, says Mike Boult, senior VP of sales for Travel Leaders Corporate and Travel Leaders Network. “An engaged TMC can ensure that you are enrolled and are maximizing the value from supplier programs designed for small and mid-sized organizations.”
“SMEs should keep a pulse on the evolving technologies that offer the desired level of freedom and flexibility, while having the scale and customer services to support their growing companies,” says Ilan Twig, CTO and co-founder of TripActions.
Technologies for SMEs should focus on providing an exceptional user experience, Twig says, just as those used by the largest organizations. This includes offering a wide selection of flight, hotel and ground transportation options, backed by machine learning and AI to help expedite and personalize the entire booking process.
Perhaps most importantly is the flexibility to adapt air, hotel and ground transport offerings to this market while maintaining the quality of service expected by larger corporate travel programs.
SMEs are very different than the large market in some ways but similar in others, according to Amanda Vining, president of Corporate Traveler, part of Flight Centre Travel Group. “They are faster to implement and more dynamic, and the landscape of customer wants and needs evolves frequently,” she says. “Perhaps what I love most in the SME space is the opportunity to have a very personalized approach.”
At the same time, similarities include travel ranking as a top business expense for customers, as well the paramount demand for marrying both technology and service. Also important, along with the blended approach, is a cost-saving strategy across a wide variety of air, car, and hotel product.
“The SME offering should be able to provide the benefits of consolidation in leveraging customer spend, should intelligently analyze reporting and make proactive suggestions on the customers’ behalf,” Vining says. “It should also be innovative and adaptive.”
Changing ToolsTechnology is proving to be a real leveler for managing SME travel, according to Boult. He points to tools that provide 24/7 mobile access to travel experts, duty of care solutions that ensure traveling employees are supported in an emergency situation, and easy online and mobile travel booking tools.
“Previously, if you didn’t have the resources available to build a dedicated travel management team, it was nearly impossible to professionally manage a travel program without it being a complex and time-consuming activity,” says Tristan Smith, vice president of account management - SME for Egencia. “But through travel management platforms, new solutions and tools are emerging.” The advent of these tools make it possible to dramatically cut back on the amount of time spent on areas such as reporting, supplier negotiations and traveler tracking.
Fischer says recent advancements in tools and technology have opened up new doors for SMEs. “With the continued advancement of technology, there is more connectivity with the end-to-end travel experience as well as reporting customization to support management visibility, decisions and actions,” he says. That includes mobile technology that connects the traveler to options and information on-the-go while staying connected to the travel program and travel system resources.
Large companies used to be the early technology adopters, but that landscape has shifted, according to Michael Steiner, EVP, Ovation Travel Group. “We’re seeing that small and medium-sized companies are the early adopters now on the new tech tools popping up in the marketplace,” he says. “Technology has now scaled and become broadly useful regardless of a program’s size.”
Compared to a few years ago, travel management technology today is less expensive, easier to implement and more user friendly. As a result, SMEs can take advantage of technology that was once cost prohibitive based on volume. “Reporting, online booking tools, virtual credit cards and mobile and risk management solutions are all more affordable now,” Steiner says.
“I have worked in the SME travel space for the last eleven years and this space has changed so much it really is incredible,” Vining says. She notes current tools encompass such solutions as intelligent direct-to-customer reporting that is analyzed to leverage spend.
She points especially to duty of care platforms as well as integrated expense tools. The former not only give visibility into where travelers are located, but support offering help in times of an emergency. The latter include online tools that, thanks to complete integration with expense platforms, eliminate the pain of providing receipts for business expenses.
Also desirable is access to platforms that are customized to each traveler, each administrator and each manager in a way that maximizes their experience. “The technology advancements are about creating a frictionless program that has a seamless integration with the service side of the business,” Vining says.
Providing round-the-clock, human customer service that helps support travelers while they are on the go is critical, Twig says. “Travelers often need the most support urgently and during off-work hours, a gap that traditional TMCs have trouble filling.”
Getting a Handle on Travel The SME market is actually the largest in the United Sates, according to Vining. “There is tremendous opportunity for organic growth with existing clients, start-ups opening their doors each day, and the beauty of growing through referrals and word of mouth,” she says.
At the same time, SMEs face some challenges not typically seen in larger organizations. “Often the person managing the travel wears multiple hats and is not dedicated to only managing travel,” Fischer says. “The TMC should have the technology, support and education available to support those who are managing the travel portfolio.”
It can also be challenging for the traveler if a company has had unmanaged travel or limited travel guidelines. “Human behavior is difficult to change,” Fischer cautions. “The best way for the TMC to support the change is to provide guidance and ample communication during the onboarding process.”
Communication challenges should not be underestimated, Steiner says, especially when moving from an unmanaged to a managed program. Ideally, a TMC partner can come in with best practices, an action plan, communication templates and timeline recommendations, and then sit down with the client to fine-tune the messaging to the company culture, travel program and goals.
Vining points out it’s important to make sure travelers from SMEs really understand the role of the TMC. “In a world where it is so easy to pull up a flight online we often think we are able do it ourselves in the SME space,” she says. “However, there are so many limitations to this from cost saving, service and duty of care perspectives.”
She says given travel is a top business expense for most companies, it’s imperative to offer a solution where travelers can have a fantastic booking experience and minimum travel disruption. “That is essential to capture data at time of booking rather than at time of expense,” she says. “There is so much more you can do from a cost saving perspective leveraging the right TMC.”
A travel partner should deliver a solution that can sustain company growth and show a solid plan for innovation, all while maintaining a great user experience, Smith says. “A TMC built on a technology platform makes it possible to address not only company-specific needs, but also the needs of a combined segment, bringing its scale together to negotiate with suppliers on behalf of its SME clients.”
Fleming notes scaling to the needs of SMEs means a TMC should have people who understand business at that level. “It’s really about building out a team that handles SME specifically,” he says.
Duty of care is another serious consideration. “SMEs want to keep their travelers safe, but may find it difficult to budget the cost associated with some duty of care solutions,” Steiner notes. “The biggest challenge is working with the SME to ensure all their bookings are made through the TMC so they receive access to the real time travel data.”
All told, the specific requirements of small and mid-sized organizations merit full consideration.
“If you are an SME, don’t allow yourself to be a square peg put in a round hole of a solution that was originally created for a large market customer,” Vining says. She strongly advises knowing your value; realizing that your spend is important and represents a large business expense to your company. “You deserve to have a TMC that will customize a solution for you and can provide you with all the tools and resources you need as you grow together in partnership.”
Beyond the traditional cost-savings, a managed travel program can impact other aspects of a company, Smith adds. She notes travel policies are increasingly playing foundational roles in building company culture and giving businesses an edge when it comes to employee recruiting and retention.
Finally Smith advises, “Look for a TMC travel partner that can truly accompany you in shaping your travel culture from sourcing to implementation to adoption, and one that truly understands your unique needs as an SME.”