Corporate travel management ( CTM ) is the function of managing a company’s strategic approach to travel (travel policy), the negotiations with all vendors , day to day operation of the corporate travel program, traveler safetyand security, credit-card management and Travel and expenses (‘T & E’) data management.
CTM should not be confused with the traditional travel agency. While they provide the day-to-day travel services to corporate clients, In other words, CTM decides on the class of service which employees are allowed to fly, corporate negotiates. The agency on the other hand makes the actual reservation within the parameters given by the corporation.
For many companies T & E costs represent the second highest controllable annual expense, and is commonly higher than IT or real estate costs. T & E costs are not only limited to travel ( airline , rail , hotel , car rental , ferry / boat, etc.) but include all costs incurred You During travel Such As staff and customer meals, taxi fares, gratuities, customer gifts, supplies (office Supplies and services). Furthermore, this area includes Often meeting management, traveler safety and security as well as credit card and travel overall data management.
Financial Management , HR , Procurement or Administrative Services Department.
Many companies, especially large multinationals (MNC), opt for global consolidation of their travel procurement. In other words, they may choose their travel arrangements in the hands of Travel Management Company (TMC). (RFP), through which the company will invite major TMCs to participate in the RFP. The process and the selection of the TMC could take several months. Once the company has chosen its TMC, the handling of their travel arrangements will be handled by the selected TMC through out the world. There might be exceptions in certain countries.
The advantages of a global consolidation in the game of numbers: the company will be able to bring to the table, the advantage of global numbers, when negotiating with suppliers. These deals could include car rentals, hotel chains, individual hotels (for specific reasons). The main goal of the T & E budget.
Travel Management Companies
The Travel Management Companies (TMC). These companies use Global Distribution Systems (GDS) to book flights for their customers. This Allows the travel consultant to compare different itineraries and costs by displaying availability in real-time, Allowing users to access fares for air tickets, hotel rooms and rental cars simultaneously. Examples of these companies include ATPI.
Travel Management (Trade) Organizations
- African Business Travel Association (ABTA)
- Association of Corporate Travel Executives act.org
- Global Business Travel Association
- Institute of Travel Management