Digital transformation of corporate travel: the inevitable shift towards a digital travel era
In the rapidly evolving world of business travel, Travel Management Companies (TMCs) are taking centre stage as digital pioneers. They are now delivering end-to-end solutions that are efficient, mobile, and compliant, transforming business travel from a mere operational process to an integrated, digital one.
These solutions encompass approval to booking, communication with travelers, reporting, invoicing, and CO2 tracking. TMCs are no longer just booking service providers; they offer a range of services including digitalization, setup of automated approval processes, and monitoring.
The importance of digitalization in business travel is emphasized by Alexander Albert, Chairman of the DRV Business Travel Committee. Modern technologies, AI, and automation bring more efficiency, transparency, and security to business travel management, making it a critical competitive factor.
Almost half (49%) of companies plan to increase their investments in digital technologies, including AI. However, many companies still work with fragmented tools, Excel tables, or manual approval processes for business travel. The digital transformation journey can optimize costs and improve traveler satisfaction by automating these processes.
AI and automation in TMCs can identify risks faster, accelerate processes, optimize costs, and improve traveler satisfaction. Currently, only 14% of companies actively use AI in travel management, indicating a significant potential for growth.
The "Chefsache Business Travel" initiative aims to position business travel as a strategic management topic and raise awareness among decision-makers. Supported by the Travel Management Companies ADAC Reisevertrieb, BCD Travel, DER BUSINESS Travel, and Lufthansa City Center, the initiative serves as a central information source and opinion leader on modern travel management.
TMCs accompany companies throughout this digital transformation journey, offering technical infrastructure, consulting, and monitoring via dashboard. They support strategic collaboration and experience improvement among travel stakeholders, addressing common customer pain-points and ensuring smoother journeys and enhanced traveler satisfaction.
Partnerships with tech companies are driving innovation, ensuring TMC service models remain future-ready and agile amid evolving travel landscapes. By merging technology and human expertise, TMCs are facilitating the digital transformation of business travel, automating processes, harnessing data intelligence, and enhancing overall travel management efficiency and traveler satisfaction.
Sources: [1] Business Travel News, "The Role of TMCs in the Digital Transformation of Business Travel," [URL] [2] Skift, "The Future of Business Travel Technology: Virtual Payments," [URL] [3] SAP Concur, "The State of Business Travel 2021," [URL] [4] Travel Weekly, "TMCs Partner with Tech Companies to Drive Innovation," [URL] [5] GBTA, "The Impact of Digital Transformation on Business Travel," [URL]
TMCs, with their increasing involvement in digitalization, finance, and technology, are expanding their service offerings beyond traditional booking services. They now provide digitalization solutions, automated approval processes, and AI-driven risk identification, transforming business travel from a fragmented process into a seamless, efficient, and secure one.
This progressive shift in the industry, further boosted by partnerships with technology companies, allows TMCs to leverage business travel data for cost optimization, traveler satisfaction improvements, and compliance assurance, making them crucial players in the digital transformation of business travel.
