The Future of Business Travel: Software vs. Travel Agencies

The business travel landscape is constantly changing; one example is the number of companies shifting from traditional travel agencies to digital travel management solutions. This transition is driven by the need for better efficiency and cost control, as well as real-time visibility into travel spend. While useful in the past, traditional agencies lack the speed and data accessibility that modern businesses require. 

Fortunately, as technology evolves, companies realize the benefits of moving away from business travel agencies and integrating travel management software into their operations.

Here’s what to know about both options.

The Limitations of Traditional Business Travel Agencies

Despite their long-standing use, traditional business travel agencies struggle to meet the demands of modern businesses. Their reliance on manual processes and communication channels creates bottlenecks in travel planning and expense management.

Here are just a few of the limitations:

Time-Consuming Processes

Coordinating travel bookings through back-and-forth communication with an agency often leads to delays, particularly when securing approvals and finalizing itineraries.

High Costs

Agency fees, commissions, and limited real-time price comparisons increase travel costs. Without dynamic pricing, businesses often miss out on more affordable options.

Limited Control and Reporting

Traditional methods lack the real-time insights companies need to manage budgets effectively. Reporting is often delayed or nonexistent, making it difficult for companies to track and control spending in real time.

Travel Management Software: A Modern Alternative

As businesses look for ways to improve operational efficiency, it’s evident that travel management software is a practical alternative to traditional travel agencies. These software solutions offer enhanced speed, control, and cost-saving opportunities that agencies simply cannot match.

What is Travel Management Software?

Travel management software automates travel bookings, expense approvals, and reconciliation processes, among other things. By integrating travel management software, companies can centralize and streamline their travel operations on a single platform.

Key Benefits of Switching to Travel Management Software

Switching from traditional business travel agencies to travel management software can offer companies multiple advantages, from reducing costs to improving operational efficiency. By using a digital platform, businesses can better manage travel logistics and budgets by leveraging automation and real-time data.

Here are a few of the benefits:

• Automation of travel bookings: Travel management platforms automate bookings, reducing employees’ time on these tasks. Company policies are baked into the process, so employees don’t have to reference a separate document to know the limits on hotel or flight costs.
• Expense tracking and reporting: Real-time visibility into travel expenses allows finance teams to accurately monitor budgets. And expenses are automatically reconcilied, which greatly reduces the time traditionally needed for this process. 
• Policy compliance: Travel and expense management software enforces company policies automatically, flagging or preventing out-of-policy bookings so that every booking adheres to pre-set guidelines without the need for manual intervention.
• Cost savings: Software’s ability to include inventory from across various platforms can lead to significant cost savings.

Comparing Software to Traditional Travel Agencies: What’s the Difference?

The transition from traditional travel agencies to software-based solutions represents a fundamental shift in how companies manage their travel needs. Software solutions outpace traditional agencies in almost every key performance area by focusing on automation and efficiency, including:

• Speed and accuracy: Software-based solutions eliminate manual tasks, allow faster bookings with fewer errors, and offer real-time inventory and pricing.
• Cost efficiency: With direct access to travel suppliers and automated price comparisons, businesses can avoid extra fees and save more money on travel.
• Flexibility and scalability: Unlike traditional agencies, software solutions are customizable to a company’s needs and can quickly scale as the business grows.

Why Businesses Are Making the Switch

Businesses are increasingly recognizing the limitations of traditional travel agencies and the significant advantages of adopting travel management software. These tools allow companies to automate processes and gain real-time insights, reducing operational costs while improving employee satisfaction.

Here are 8 reasons why companies are switching from a traditional business travel agency to an integrated travel management software solution:

• Flexibility and automation: These solutions offer greater flexibility, allowing businesses to adjust travel plans as needed while automating the approval and reconciliation processes.
• Improved employee satisfaction: Faster booking processes and quicker reimbursements contribute to a better employee experience, leading to higher adoption of travel policies.
• Comprehensive reporting: Real-time analytics and data reporting help businesses optimize travel spending and make more informed financial decisions.
• Enhanced duty of care: Travel management software enables businesses to track employee locations in real time, helping to facilitate quick responses during emergencies and fulfilling their duty-of-care obligations.
• Increased policy compliance: Automated policy enforcement significantly reduces out-of-policy bookings by flagging or preventing non-compliant choices before they happen, reducing manual oversight.
• Mobile accessibility: Employees can book travel, manage itineraries, and access support directly from their mobile devices, providing greater convenience and flexibility.
• Seamless integration with expense management: Many platforms integrate travel and expense management, offering a unified solution that streamlines expense tracking, reporting, and reimbursements.
• Better vendor relationships: Software platforms often provide access to a broader network of suppliers, allowing businesses to negotiate better rates and secure more competitive travel deals.

Travel management software is quickly becoming the preferred solution for modern businesses. 

Watch a demo today to learn how Navan’s travel management software can streamline your business travel operations to save time and reduce costs.