Which Is Best? Business Travel Agents vs. Software

Before the days of instant online booking, business travel agents were the go-to solution for business travel needs. These agents provided a vital service when flights and hotel arrangements had to be made over the phone. Agents’ industry expertise allowed companies to focus on their core operations while leaving travel logistics in capable hands.

While business travel agents once provided an invaluable service, travel management has evolved rapidly with technological advancements, giving rise to online booking platforms, and AI-powered tools. Today’s businesses need more scalable and efficient solutions, and modern travel management companies (TMCs) provide the cost control and flexibility they desire.

As companies grow, and more employees travel, finding the right travel solution becomes more important — and more challenging. The choice usually boils down to which tool saves a company the most time and money, while offering the widest inventory and the best possible user experience. While travel management companies have become the go-to for many firms across industries, some smaller businesses still rely on travel agents to manage their travel.

This article will break down the differences between traditional travel agents and TMCs to help you decide which is the best fit for your business.

Benefits and Limitations of Business Travel Agents

While business travel agents may seem like the solution for companies with basic travel needs, their traditional methods often lead to inefficiencies, particularly for growing businesses. Relying solely on a travel agent can result in slow, manual processes and limited scalability — especially in a world where automation is driving business success.

Benefits

For organizations with simple travel needs, business travel agents offer the following benefits:

• Personalized Service: Travel agents provide a tailored approach, offering recommendations and advice based on their knowledge of the industry and individual traveler preferences. This personal touch can make travel planning easier, especially for those unfamiliar with the process.
• Expertise and Connections: Many agents have established relationships with airlines, hotels, and other travel providers. These connections can result in access to exclusive deals or upgrades.
• Assistance with Complicated Itineraries: For multi-destination trips or international travel with complex visa requirements, agents can provide guidance with all administrative processes, verifying that travel regulations are met.

Limitations

Common setbacks of using traditional business travel agents include:

• Lack of 24/7 Access: Agents must personally manage last-minute bookings, cancellations, and disruptions, which can lead to delays and shortcomings — especially if travelers need help during off hours.
• Higher Costs: Travel agents often operate on a per-booking or per-contact basis, and these costs can quickly accumulate. They also lack the infrastructure needed to adequately handle growing travel demands.
• Manual Processes: Agents require back-and-forth communication for bookings, which wastes valuable time and leads to inefficiencies across the organization.
• Inconsistent Policy Enforcement: Travel agents may overlook important company policies, resulting in compliance issues and out-of-policy bookings.
• Limited Data and Reporting: Travel agents offer minimal visibility into travel spend, making it difficult to track costs, identify trends, or make informed decisions.

For larger or fast-growth businesses, this traditional model can be expensive, inefficient and doesn’t meet the need for real-time visibility.

Benefits and Limitations of Travel Management Companies

Travel management companies leverage advanced technology to automate processes and provide real-time data access, offering a broader range of services than traditional business travel agents could possibly offer alone. TMCs combine online bookings with agent support, streamline travel programs, and empower businesses to manage travel with greater efficiency, transparency, and compliance.

Benefits

The benefits of TMCs can significantly enhance business travel management:

• Automation and Scalability: Travel management companies automate key processes such as approvals and expense management. This is particularly useful for organizations with frequent and complex travel needs. Automation reduces human error and allows companies to handle a large volume of bookings without increasing headcount.
• Real-Time Data and Reporting: One of the biggest advantages of TMCs is the ability to access and analyze data in real time. Companies can monitor travel expenses, compliance rates, and traveler safety across multiple regions, enabling smarter decision-making and cost control.
• Integration with Existing Systems: A well-executed TMC integration helps centralize travel operations, providing seamless connectivity with expense management platforms, HR systems, and financial reporting tools.
• Enhanced Compliance and Policy Enforcement: TMC platforms can be configured to automatically enforce business travel policies so that bookings align with company guidelines. This reduces the risk of non-compliance.
• 24/7 Traveler Support: TMC platforms often provide around-the-clock support and self-serve options, so that travelers can receive immediate assistance for bookings, changes, or emergencies, without relying on the limited availability of traditional agents.

Limitations

While TMCs offer many benefits, there are a few limitations to be mindful of:

• Initial Setup and Learning Curve: Implementing a TMC platform can require time, training, and adjustments for your employees. The initial setup and process adaptation require resource investment.
• Cost Efficiency for Low-Volume Travel: While TMCs offer advanced features and scalability, they may be cost-prohibitive for smaller businesses with less frequent travel needs. However, implementing TMCs may actually lead to long-term time and cost savings through automation, negotiated rates, and integrated expense management tools.

It’s essential to choose a TMC that not only meets your company’s needs but also addresses these limitations with flexible solutions, such as personalized support, scalable pricing, and seamless onboarding processes. Finding a provider that balances technology with human expertise can make all the difference in maximizing efficiency without sacrificing service quality.

Demystifying the Technology Behind TMCs

Despite the obvious advantages of modern travel management companies, some companies are resistant to adopting this technology platform.

Let’s debunk some common myths about TMCs and highlight why they’re a superior choice for modern business travel needs.

Myth: TMCs Lack Personalization

A common myth is that using a TMC means sacrificing personalized service. The reality? TMCs enhance personalization. Travelers can self-book hotels and flights based on their schedules, needs, and loyalty programs. Furthermore, generative AI now provides custom recommendations based on individual preferences and booking patterns, making personalization better than ever.

Myth: TMCs Don’t Provide Adequate Support

Another misconception is that TMCs don’t offer the same level of support as traditional business travel agents. In fact, many TMCs have built robust, 24/7 support systems, often powered by AI chatbots that handle inquiries instantly.

For more complex issues, human support is available any time of day. This hybrid model ensures that travelers get fast, reliable assistance, no matter when or where they need it.

Myth: TMCs Are Hard to Integrate with Existing Systems

Businesses often fear that adopting a TMC will disrupt their existing workflows. However, most TMCs, like Navan, integrate seamlessly with platforms companies already use.

These systems simplify travel management without costly or time-consuming overhauls, minimizing disruption and ensuring a smooth transition — making the switch hassle-free for both travel and accounting teams.

Myth: TMCs Are Only for Large Corporations

Many believe TMCs are designed exclusively for large enterprises with massive travel budgets. In reality, modern TMCs cater to businesses of all sizes, offering scalable solutions that can accommodate the needs of small to mid-sized businesses while still delivering cost savings, convenience, and streamlined processes.

Myth: TMCs Are Too Expensive

There’s a perception that using a TMC is more expensive than working with traditional travel agents. In reality, TMCs often save businesses money by negotiating better rates, enforcing travel policies, and providing real-time visibility into spending. The automation they offer also reduces manual processing costs.

Myth: TMCs Are Difficult to Use

There’s a misconception that TMC platforms are complex and difficult to navigate. In reality, modern TMCs prioritize user experience, with intuitive dashboards and mobile apps that make booking, expense management, and reporting straightforward for both travelers and administrators.

“

Previously, we worked with a travel agent but, honestly, by the time employees researched their destination, scheduled their itinerary meetings, chose what flight to take, and what hotel to stay in, they’d basically done all the work, and it was simply easier for them to book it themselves versus calling the agent.

Madelynn Coe

Senior Accounting Manager

Choosing Between a Business Travel Agent and a TMC

Ultimately, the decision comes down to scalability. However small or large the travel needs of your business are, travel solutions should stay limber. Business travel agents may lack the personnel and capacity to quickly adapt to growing corporate travel needs, while TMCs provide a scalable, tech-driven solution. These systems optimize efficiency, ensure policy compliance, and offer comprehensive financial oversight.

As your company expands and travel demands grow, transitioning to a TMC can offer the leverage needed to stay agile in the business world.

Ready to start your journey into turbulent-free corporate travel? Get started with Navan.