Why Digital Transformation in Business Travel Matters For Finance Teams
The last five to ten years have seen the uprising of digital transformation initiatives across organizations of all sizes, industries, and geographies. And while many of those efforts modernized analog process for more modern, efficient, and cost effective approaches, most skipped over one of the largest budget line items across organizations: business travel.
When it comes to managing and optimizing business travel, many finance organizations still rely on behind-the-times legacy systems that deliver a poor user experience, resulting in a lack of employee adoption and poor visibility into travel spend, which accounts for approximately 10% of a company’s overall spend.
In particular, there are three significant challenges that finance organizations can face when it comes to effective business travel management:
Low Traveler Adoption
A lack of relevant and personalized flight, hotel, car, and rail inventory causes travelers to “go rogue”, or book outside of the approved solution. This not only reduces visibility into and control over travel spend, it can also compromise supplier relationships and pre-negotiated rates.
Many in-house finance teams weren’t initially trained on the softer skills and change management approaches that can help them more efficiently manage and solve the employee travel challenges unique to this tech-forward, data-driven era.
A Lack of Flexibility
Rigid programs and policies don’t allow for common travel variables such as locations or dates, making it difficult to deliver options that are both cost-effective and traveler-friendly.
Ultimately, these challenges can have a big impact on the financial health of your organization — and not in a good way.
The good news is that business travel is ripe for digital transformation, and engaging in digital transformation for this last mile of business will benefit your finance organization, your bottom line, and your company’s culture. Download our Digital Transformation in Business Travel ebook to learn how to tackle these challenges and use our 3-part framework to drive more program savings and success.