Business travel expertise is vital to SME growth

 

Small to medium-sized enterprises (SMEs) are a large contributor to a growing globalized workforce, with SMEs collectively representing approximately 90% of all businesses and more than 50% of employment worldwide, according to data from World Bank.

SMEs have the ability to grow their business at a faster rate than large companies by adopting the tried and tested strategies, technologies and practices of successful larger organizations.

In the post-pandemic environment, SMEs have also resumed their business travel activity at a faster rate than large organizations because they are not subjected to the approval processes, travel policies and compliance mechanisms of larger, more complex travel programs.

The "fear of missing out"

According to McKinsey & Company, this early resumption of SME business travel is likely to cause a ripple effect within the segment, with competitors taking to the skies to retain their customers and prospect new ones. This “fear of missing out” (FOMO) segment of business travel made up 60% of corporate travel expenditure in 2019. “SMEs are likely to trigger a domino effect where one company’s resumption of business trips will catalyze its rivals’ return to work-related travel. Faced with intense competition, different players in the company (leadership, management, staff) coalesce to reinstate corporate travel at scale to seize the first-mover advantage over rival businesses.”

Despite the “fear of missing out” fueling the SME market, not all SMEs utilize the services of a professional travel management company (TMC) and those that don’t may be missing out on other significant competitive advantages; cost savings through global buying power and internal efficiencies, and risk reduction through duty of care solutions.

Travel solutions drive speed and efficiency

A pre-pandemic study conducted by YouGov, an international research data and analytics group, revealed that the average small business was taking a total of 88 minutes to plan and book a business trip, and even longer for those companies with more than 50 employees. Medium-size enterprises were spending an additional 12 minutes, with individual travel bookings taking 100 minutes to complete on average.

In the post-pandemic environment with more complex travel requirements and considerations, these booking times could be significantly longer. Corporate Travel Management’s (CTM’s) proprietary online booking tool, Lightning, consolidates corporate deals on flights, hotels and car rental in a single, intuitive booking platform, enabling users to book their entire business travel itinerary in less than 90 seconds.

For SMEs, understanding the savings opportunities and ancillary advantages that a managed travel program can offer is now more important than ever, according to CTM North America’s Chief Operating Officer, Maureen Brady. “What is important about the SME market is to understand the reason why they travel – and that reason is to grow their business. Growth comes in many forms – more customers, more employees, more offices, more investment. Growth opportunities require cashflow, and achieving quick and quantifiable benefits to the bottom line.

“Small businesses understand the importance of face-to-face engagement and relationship building to drive sales and retain customers. However strategically managing the travel budget is often some way down the list of priorities for most SMEs. Access to corporate negotiated airfares and hotel rates is an obvious win for SMEs, but reducing the time their employees spend booking their business travel is often even more financially lucrative, and that’s where professional booking platforms and business travel expertise can return immediate savings.”

Resources at many SMEs may have been stretched by the impacts of the global pandemic. Finding time to explore travel expenditure and strategize savings opportunities is not often top of mind for small businesses. A travel program that’s designed and optimized to drive savings and efficiency by streamlining and simplifying the travel management experience, supported by user-centric technology, 24/7 travel support, and a dedicated Account Manager is a simple way for SMEs to achieve savings, efficiencies and risk mitigation for their business and employees.

Monica Colligan, CTM North America’s Executive Director of Account Management explains, “We consult with our customers as to what their needs are, what they are trying to accomplish and how best to manage their program. For example, for smaller businesses, it may not be necessary to have an online booking tool or complex approval hierarchy.

Working with a TMC that provides flexible solutions is key to ensuring a travel program that’s the right fit for their business goals and staff needs, whether that’s via self-service tools or the ability to rely on a trusted travel advisor who can manage complex travel itineraries, last-minute changes and navigate travel disruptions to ensure their business trip and investment is as effective and productive as possible.”

Travel solutions designed for small and growing businesses

CTM offers a range of travel management solutions designed specifically for small and growing businesses. Self-service online travel booking platforms and mobile apps enable small business employees to book their travel anytime and anywhere via their preferred booking device, providing centralized access to an extensive range of travel content and travel insights (including health, travel restrictions, and sustainability) all in one place.

Additionally, businesses can tailor their travel program and tools to suit their business needs and objectives, with access to centralized and integrated travel reporting, spend optimization reviews, trip approval, traveler tracking and duty of care solutions and carbon offsetting under one roof. CTM’s solutions drive savings to your travel budget while delivering efficiency and safety for your traveling workforce, ensuring your team has time to focus on your business.