What I Need to
Know
Objectives
At the end of this lesson, the learner is expected to:
1. explain the value of corporate travel management; and
2. differentiate the types of corporate travelers.
What is It
Value of Corporate Travel or Business Travel
Business trips are work-related and financed by the company,
business travel’s primary consideration is the reliable delivery of all
aspects of travel arrangements. The person or entity that finances
the trip, expects some benefit from the trip or the outcome of the
trip, whether a corporation, a shipping company or a couple needing
a domestic helper.
The difference has a major impact in how the travel arrangements
are made and paid for.
The value of corporate travel management can be summarized into
three: financial controls; policy adherence; and safety and
efficiency.
Let’s study them in detail one-by-one (Obando 2001):
1. Financial Control
o Having a professional travel management company or competent
in-house travel professionals that can manage and negotiate travel-
related services provides measurable financial benefits to the
corporation.
o The capabilities to monitor and analyze travel expenditures are
essential if cost cutting opportunities are to be identified and taken
advantage of.
As a general rule, the appointed travel management company or
the in-house travel department works with each department to
determine its travel needs and develop its travel budget, based on
current spending and planned development.
With the consolidated travel needs of the corporation, the discounts
and preferred rates are negotiated with the travel suppliers based
on company-wide needs.
2. Policy Adherence
Corporate travel management also involves developing corporate
travel policies that optimize the company’s travel expenses.
Proper procedures must be followed in order to adhere to the
company’s travel policies. Otherwise, the company will just be
wasting money through more expensive bookings especially with
non-preferred travel suppliers.
The linkage of the consolidated travel needs of the corporation with
the corporation’s travel policies are executed through the corporate
travel procedures in the managed corporate travel program.
The corporate travel program guides the employees to travel the
way the management recommends.
By taking advantage of the negotiated preferred rates or discounts,
a well-managed travel program pays for itself through lesser costs
and negotiated revenue, such as rebates, overrides and incentive
payments.
3. Safety and Efficiency
Corporate travel professionals are responsible for providing a
valuable service to their clients, the corporate traveler.
This responsibility involves ensuring that travel is both safe and
productive.
Corporate travelers need a smooth, efficient travel process in order
to reach a company’s business objectives.
During national, corporate or personal crisis, travel management
professionals are vital in reducing risk to the company and its
travelers, through emergency tracking and assistance.
Corporate managers at all levels realize the non-monetary benefits
of their corporate travel department and the value of the human
factor.
Types of Corporate Travelers
Business travel is characterized by sponsored travel for financial
gain. This includes individuals both in government and private
sector, including the civil society and non-governmental
organizations. For the purpose of understanding what corporate
travel management involves, only a selected number of business
travelers will be identified and described.
Among the most common types are (Claravall 2008):
1. Businesspersons
Are those who own or are owners-managers of their respective
business enterprise, who travel for various reasons, mainly:
o to solicit additional contracts;
o to negotiate for a source of raw materials; and
o to participate in events of interest to the enterprise.
Normally schedule travel well in advance and the enterprise
shoulders most travel expenses. Because the traveler is the owner,
travel expenses may be limited.
2. Corporate executives
Are those travelers of executive rank, directors, assistant and
executive vice presidents, presidents, chairs and the like, traveling
to represent the company in events overseas, or to attend corporate
affairs in a multinational setting.
Image is an important factor in nurturing prestige, travel expenses
are unlimited, but subject to the travel policies of the corporation.
Travel may happen once a year or once a month or as often as
necessary.
3. Corporate supervisors/rank-and-file
Like the senior corporate officials, the lower ranks may also travel to
represent the corporation in meetings overseas or attend training
programs in the corporate headquarters.
Travel budgets for these individuals may not be as large as their
senior counterparts, but is the corporation’s image plays a role in
determining the travel budget.
They travel as often as necessary.
4. Mariners
Or seafarers have travel needs which are either scheduled in
advance or are as need arises, normally under time-sensitive
schedules.
They are needed in a certain port on a certain date, and travel must
be accomplished regardless of the cost.
5. Land-based overseas workers
Normally travels one way, once a year, and seldom purchase
roundtrip tickets.
The best example of these are the domestic helpers (DH) based in
Hong Kong
6. Government officials and employees
Just like the corporate executives, supervisors and rank-and-file, the
Philippine government conducts missions to foreign countries for
various purposes – commercial, diplomatic, military and the like.
Government officials and employees travel overseas on official
business and such require travel arrangements just like any other
traveler.
Obviously, there are many more than those mentioned above, however,
these should suffice to give understanding of what business travel
or travel for business purposes is all about.
What I Have Learned
Getting into Details. On the space provided before the item number,
write FC if the statement falls under Financial Control, PA for Policy
Adherence and SE for Safety and Efficiency. Write your answer on a
whole sheet of paper.
_______________1. Corporate managers at all levels realize the non-
monetary benefits of their corporate travel department and the
value of the human factor.
_______________2. Taking advantage of the negotiated preferred rates or
discounts, a well-managed travel program pays for itself through
lesser costs and negotiated revenue, such as rebates, overrides and
incentive payments.
_______________3. With the consolidated travel needs of the corporation,
the discounts and preferred rates are negotiated with the travel
suppliers based on company-wide needs.
_______________4. Corporate travelers need a smooth, efficient travel
process in order to reach a company’s business objectives.
_______________5. The corporate travel program guides the employees to
travel the way the management recommends.
_______________6. The linkage of the consolidated travel needs of the
corporation with the corporation’s travel policies are executed
through the corporate travel procedures in the managed corporate
travel program.
_______________7. The appointed travel management company or the in-
house travel department works with each department to determine
its travel needs and develop its travel budget, based on the current
spending and planned development.
_______________8. Corporate travel professionals are responsible for
providing valuable service to their clients, the corporate traveler.
_______________9. Corporate travel management also involves developing
corporate travel policies that optimize the company’s travel
expense.
______________10. The capabilities to monitor and analyze travel
expenditures are essential if cost-cutting opportunities are to be
identified and taken advantage of.