After the COVID-19 pandemic, companies and startups have been increasing business travel costs with the aim of generating incremental revenue. In addition to updating corporate travel policies, they have been focusing on meeting and managing varying business travel needs.
Some businesses meet their work travel requirements by partnering with a travel management company, while others opt for an online travel agency. Both travel management companies and online travel agencies help clients simplify and accelerate business travel booking.
They enable employees to choose from an extensive travel inventory and avail of negotiated or discounted rates. But a travel management company and an online travel agency differ from each other in many categories, including scope, solutions, services, and tools. Hence, decision-makers can manage varying travel management needs efficiently only by differentiating between the two options.
Online Travel Agency
An online travel agency makes it easier for business travelers to research, plan, and book business trips by launching an online marketplace. The online marketplace created opportunities for work travelers to compare flights, accommodations, car rentals, and similar business travel products provided by multiple vendors and suppliers.
Also, they can control business travel costs by availing of discounts and deals. The website helps them to make payments and receive booking confirmations instantly. Many business travelers opt for online travel agencies to conveniently plan and book business trips using a computer or mobile device.
Travel Management Company
A travel management company helps companies and startups manage their business travel needs efficiently. Like an online travel agency, a travel management company simplifies business travel booking by providing self-booking tools and supporting managed travel bookings.
But the company streamlines the client’s travel management process entirely by ensuring policy compliance, providing a duty of care, and delivering real-time notifications. Also, some travel management companies these days help businesses manage travel expenses efficiently and prevent travel expense frauds through automation.
Likewise, many travel management companies these days use data analytics to provide actionable insights that help clients make informed decisions. Hence, businesses find it profitable to meet their current and emerging business travel needs by partnering with the right travel management company.
Travel Management Company vs. Online Travel Agency
Travel Program Implementation
The digital products and services provided by online travel agencies do not help clients implement custom business travel programs. But travel management companies help clients implement and manage travel programs efficiently by providing specialized services.
The software provided by them helps companies implement custom travel policy guidelines and multiple approval workflows. Also, businesses can refine the work travel policy by consulting the experienced travel consultants deployed by the travel management company.
Travel Booking Tools
Both travel management companies and online travel agencies provide users with self-booking tools. But the tools provided by online travel agencies help employees buy business products and services on the go. Most agencies do not deploy qualified professionals to curtail operational costs.
Many travel management companies these days support managed business travel booking. In addition to providing self-booking tools, they help employees get support while comparing and booking travel products. Hence, it becomes easier for employees to enjoy superior travel experiences by booking the right travel products.
Travel Booking Costs
Most online travel agencies require airlines, hotel chains, and other suppliers to pay fees to display their travel products. Hence, business travelers lack the opportunities to book travel products and services at lower rates. Unlike travel agencies, travel management companies do not charge their suppliers.
They allow employees to book travel products using a global distribution system. Many companies even build a network of suppliers to provide travel products and services at lower rates to clients. Also, they recommend the right travel products or services to a user according to preset business travel guidelines and budget.
Duty of Care
A duty of care has become an essential aspect of business travel in the post-pandemic age. Every organization these days keeps employees safe and stress-free during business trips by ensuring they can access the required duty of care without any hassles or delays.
Online travel agencies do not provide a duty of care to users after they book business travels. But travel management companies help organizations boost the employee travel experience by enabling access to a duty of care through the customer support team.
Travel Expense Management
While designing business travel programs, decision-makers have to focus extensively on controlling and managing business travel expenses. In addition to speeding up travel expense reimbursements, they have to explore ways to prevent travel expense fraud.
Unlike online travel agencies, travel management companies help businesses streamline the travel expense management process. Leading companies these days implement a unified travel and expense management software solution. The software comes with built-in features to prevent travel expense fraud and automate travel expense audits.
Travel Data Analysis
Businesses these days collect large amounts of employee travel data regularly. They must leverage the travel data to make informed decisions that result in meeting business traveler expectations and control travel expenses.
A business leverages employee travel data fully only by partnering with a travel management company instead of an online travel agency. The travel management software launched by leading companies these days features data analytics. The analytics helps decision-makers understand employees’ travel preferences and spending habits in minutes.
Choosing between a Travel Management Company and an Online Travel Agency
A business can make it easier for employees to book business travels by opting for an online travel agency. The online platform created by the online travel agency will allow employees to choose from multiple airlines, hotels, and car rentals. Also, they can book the desired options at discounted rates.
But no business can streamline the travel management process only by simplifying booking. That is why; companies and startups these days prefer travel management companies to online travel agencies to manage their work travel needs effectively.
A business can partner with a leading travel management company to improve work travel experiences and control business travel costs through automation. The travel management software provided by the company will enable employees to choose from many options and book the desired option at discounted rates.
However, the software will ensure that the employee does not violate the employer’s predefined travel guidelines. Also, the employees can stay comfortable and safe during the business trip by accessing the duty of care provided by the travel management company across business travel destinations.
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