About creating a travel program that balances flexibility, control, and cost-efficiency
as your business expands.
As companies grow, so does their need to manage business travel more effectively. What worked when travel was occasional or limited often doesn’t scale well as more employees start booking trips regularly. For growing organizations, the challenge is to develop a travel booking strategy that balances traveler flexibility with cost control and compliance.
This article explores two common approaches—open booking and managed travel—and how to decide which strategy aligns best with your company’s current and future needs.
Understanding Open Booking
Open booking allows employees to independently book flights, hotels, and transportation without strict vendor restrictions or mandatory approvals. This model is often favored by smaller companies or teams that want to give travelers the freedom to choose options that suit their personal preferences, such as preferred airlines, hotels, or loyalty programs.
Employees often appreciate open booking because it offers:
- The ability to select accommodations and flights based on comfort and convenience
- Reduced friction with fewer pre-trip approvals
- Potentially lower base fares in some cases
However, while open booking can simplify the front-end booking process, it introduces several challenges for management:
- Expense tracking and reconciliation become more complicated when bookings happen outside a centralized system
- Employees may book outside company policy, leading to higher risks of overspending or non-compliance
- Companies miss out on negotiated rates and discounts typically available through managed travel platforms
- Support for travelers during delays or emergencies is limited, as there is no centralized oversight
The Benefits of Managed Travel
Managed travel programs centralize and streamline the entire booking and expense process, helping companies control costs while improving compliance and traveler experience.
Key advantages include:
- Centralized Booking and Expense Management: Employees book within policy using integrated platforms that combine travel, expense, and corporate card management. This reduces out-of-pocket expenses and speeds up reimbursement.
- Automated Policy Enforcement: Travel platforms guide travelers to approved options and automatically route exceptions for approval, reducing policy breaches and overspending.
- Improved Support and Duty of Care: Real-time itinerary tracking and 24/7 access to travel agents provide quick assistance during disruptions, enhancing traveler safety and satisfaction.
- Cost Savings and Financial Insights: Managed travel programs secure discounted rates, reduce leakage, and provide detailed spend data to improve forecasting and budgeting.
- Scalability: As your business grows, managed platforms evolve with you, preventing costly system upgrades and offering rewards and rebates to boost financial health.
Finding the Right Balance for Your Business
There’s no one-size-fits-all answer when it comes to travel booking strategies. For smaller companies with infrequent travel, open booking might offer the simplicity and freedom they need. But as travel volume grows and complexity increases, managed travel platforms become essential for maintaining control, reducing costs, and supporting employees effectively.
For companies ready to build or upgrade their travel program, adopting a managed travel approach can provide a foundation that is both flexible and efficient—empowering travelers while delivering value to the business.