Chief financial officers are now facing a conundrum as they plot the fiscal course of 2024’s business travel as it will require a balancing act between the books and the wheels of commerce turning.
To be prepared, CFOs must keep in mind of the following for better business travel cost management:
Utilising new technology
CFOs are increasingly leaning on sophisticated travel management systems that offer not just data but insights. These systems provide a real-time view of spending, allowing for nimble adjustments to travel strategies.
One of the key technologies being used is sophisticated booking and expense management systems. These systems provide a comprehensive platform for managing all aspects of travel, from booking flights and accommodations to tracking expenses. These often come with features like integrated approval workflows, real-time expense reporting, and analytics capabilities.
Adaptable policies are a must
These systems are increasingly being integrated with corporate travel policies, ensuring compliance and helping to prevent unauthorised spending. They can be configured to flag or block bookings that don’t comply with company travel guidelines, such as bookings at non-preferred hotels or flights outside of set budget limits.
Travel policies, once set in corporate stone, are now fluid, evolving documents. These policies are being recalibrated not just for cost-effectiveness but also for sustainability – a nod to the growing chorus demanding corporate responsibility towards the environment.
CFOs are also turning their gaze inwards, focusing on employee education and policy compliance. It’s an acknowledgment that the human element is critical in managing travel costs. Employees are being coached to make more financially and environmentally sound travel decisions.
With a growing focus on sustainability, some companies are using technology to track the environmental impact of their travel. These tools can calculate the carbon footprint of different travel options, helping companies make more environmentally friendly travel choices.
Do not forget to negotiate
Negotiating with travel providers is emerging as a pivotal strategy. In a market where every penny counts, CFOs are leveraging their companies’ travel volume to secure more favourable rates from airlines, hotels, and car rental firms.
The use of predictive analytics and data visualisation tools is also on the rise, in this arena. These tools analyse historical travel data to forecast future travel trends and spending. By understanding these patterns, CFOs can negotiate better rates with travel providers and make more informed decisions about travel budgets and policies.
The Hybrid approach
The post-pandemic era has ushered in a new understanding – not all meetings warrant a trek across continents. CFOs are championing a hybrid model, blending virtual and in-person meetings. This approach isn’t just fiscally prudent; it also aligns with a world increasingly conscious of its carbon footprint.
AI and ML
Finally, artificial intelligence and machine learning are beginning to play a role in travel management. These technologies can automate routine tasks, such as travel booking and expense categorisation, and provide more advanced insights into spending patterns and potential savings opportunities.
