Hospitality Management
Article | July 19, 2023
Corporate travel and expense management is one of the cumbersome challenges for CMOs. Travel expenses are the second-highest expense and one of the toughest to control. Getting the best price for a business out of bookings is not enough for a CMO to manage travel expenses. Instead, there are other challenging factors that challenge a company. What are these challenges? Brief information on it can help you identify what your company needs to fix upon to understand this.
Lack of data collection
No proper visibility into corporate travel spend
Lack of an organized corporate travel and expense management process
Proper policies
Lack of inventory-rich management system
No accountability to services under corporate travel and expense policy
Lack of technology usage
Lack of flexibility
Lack of a stable plan for create travel management strategy
Advanced corporate travel and expense management is one of the best solutions today to curb these challenges. So, how can corporate travel and expense management help CMOs succeed in business? Before finding it, a glimpse at the management’s ability and efficiency can help you understand more about it.
Corporate Travel and Expense Management: What Do You Need to Know?
Corporate travel and expense management today has become advanced after the pandemic hit. Today, it is integrated with cutting-edge features through software and is used for mobile and desktop applications. The applications such as spend control & reporting, quick and easy booking, automated expense & reimbursement solutions with receipt capture, back up analytics capabilities, live credit card feeds, and customizable real-time reports are included. All these are powered by machine learning and artificial intelligence.
While many CMOs agree that strategizing corporate travel and expense management is helpful to save costs. They emphasize this because their companies have already practiced advanced corporate travel and expense management. Other corporate expense management companies also implemented corporate travel and expense management. And they recommend incorporating advanced management to curb expenses. If you face challenges in organizing corporate expense systems, this is the right article to learn how to cope with challenges.
Corporate Travel and Expense Management: How should you go about it?
Corporate travel and expense management are set to soar up to $1.7 trillion by 2022 globally, right after the travel companies started investing. This indicates the right time for you to start strategizing corporate travel management and its expenses by following practical steps.
Consider Technology-based Solutions
Cloud-based corporate travel expense software can simplify your corporate travel management and travel-related expense policies. It leads the entire expense management process to a higher degree of competence. The automation of the corporate travel management process also makes employees easy to file expenses on time.
For example, TripActions is a leading corporate expense management company. It provides top software solutions for corporate travel and expense management. The company promotes technology and offer solutions that come with ease of use.
No Paper Checks
Modern corporate travel and expense management saves ample time by eliminating paper checks. Paper checks make the process tiresome, and there are high chances of error. It also leaves space for employee fraud, which results in tracing difficulty. Thus, paperless work reduces the chances of data tampering and save over-pricing possibilities. Your business can be profitable if you inculcate corporate travel expense software. You can find a list of top software online. Incorporating modern corporate travel and expense management solutions can curb expenses. Practicing the best practices for travel expense management can generate higher revenue for your company.
Set an Accountable Plan on Reimbursement
The reimbursement processes can turn easy with modern corporate travel expense management. The management can help to set an accountable plan and give access to a list of reimbursements. In this way, employees can claim the existing reimbursements in one go. Following this practice for travel expense management can organize all travel and expense management services in one place. And you will never encounter any corporate travel management challenges in the future.
Offer Flexibility
Employees are the happiest when they have freedom in their work and workflow. And because of this, you need to include a broad travel inventory. Modern corporate travel and expense management offers an inventory-rich system that allows various options to check employees' booking flights, accommodation, or car rentals. For example, Expensify provides a clear insight into the entire trip's actual cost to corporate travelers. Other corporate business travel management companies also implemented advanced corporate travel and expense management systems. And they are shaping the travel industry like other industries.
Choose the Right Software
In this, you need to choose the right corporate travel expense software for your business expense management. A corporate travel and expense management software includes features to manage corporate travel and expense policy, organize travel and expense management services, create a proper travel management strategy, manage corporate travel programs, and sets corporate travel management trips. Often, it appears impossible to organize trips that change. Corporate business travel management can help ease your employees’ load. Similarly, corporate travel and expense management software offers other features, such as:
It allows corporate travel managers to keep a proper view of employees traveling on a particular day
Budget tracking and travel policy tools through apps help simplify the process of business expense claims for employees as well as the finance team
Automated receipt submission reminders help employees to submit the reports on time
Ratings of travel and expense management services include car rentals, airfare, lodgings, and accommodation
Instant price comparisons
24/7 on the go support for managing a corporate travel program and expense management
Self-booking of business trips with the help of the travel booking management software
Seamless corporate travel expense reporting
Search about Software Compatibility
When including automation, you need to research corporate travel expense software's compatibility. When you consult a vendor online or in-person and understand software flexibility for travel bookings and transportation services, you can easily select according to your business requirements. By doing so, you tend to save a lot of time and deploy corporate expense systems faster.
Consider Setting up a Budget for Corporate Travel and Expense Management
For a company, the budget plays a pivotal role before setting up a new system. Questions like what kind of corporate travel and expense management solution you wish to invest in should also be considered if you want your company to succeed. Incorporating a corporate travel and expense management system involves a series of processes such as setup, installation, support, and customization. Thus, choosing the right software or tool is a crucial matter that compliments all budgetary solutions. Set up a budget, research which software can be beneficial to you, and incorporate it to exercise fast processes of your travel and expense management services.
Tips to Create a Successful Corporate Travel and Expense Management
While there are several solutions to corporate travel and expense management and you understood how to implement it, some tips can also lead you to be successful in business by introducing advanced travel and expense management services, corporate travel and expense policy, corporate expense systems, travel and expense management resources and more. Therefore, for this, you need to:
Educate employees and help them understand the technological aspects of advanced best practices for travel expense management
Set cost-saving strategies with the help of research on what other corporate expense management companies are implementing
Be resilient and open to suggestions from your employees
Consider integrating travel management strategies with an automated travel & expense management system. In this way, your company’s corporate travel and expense management will continue to function efficiently. As travel industry leaders are changing their strategies to stand out in 2021, it is time to end fretting over manual corporate travel expenses difficulties. With the help of a dedicated corporate travel management strategy, you can succeed in achieving the goals you set for the New Year in your company.
Frequently Asked Questions
What is Travel and Expense (T&E) Management?
To understand corporate travel and expense management, a few features are explained below:
Tracking of reports
Reporting
Costs management
Submission of receipts
Reimbursement
Clearing expenses
Management of corporate travel
Pricing
List of services
How to manage travel expenses in corporate?
To manage travel expense under a corporate travel and expense management system requires the following things:
Keep track of details
Submit expense report on time
Plan ahead
Organize data with details
Choose a suitable tool or software
Create a fast workflow
How to manage corporate travel and expense budget?
Some careful planning and thorough research on selecting the right tools or software can easily manage corporate travel and expense budget. With this, a business can get a closer insight into the planning of the budget, which results in building of a dignified corporate travel and expense management.
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Travel Technology
Article | May 5, 2023
In 2020, the number of suspected online travel fraud attempts in the U.S. jumped by 136.6%. Two years later, the online travel fraud “industry” is still going strong, making online travel agencies and tourism businesses lose their money and reputation.
"Traveling has always been when people are more vulnerable. A few hundred years ago, the perpetrators were pirates or highwaymen. Now those criminals are still out there, but they've changed their methods to focus on digital attacks instead."
-Caleb Barlow, ex-Vice President of X-Force Threat Intelligence at IBM Security.
Mitigating fraud risk is important in any industry, but it is especially important in industries like travel where competition is fierce and margins are shrinking. The high resale value of its digital goods makes the travel industry vulnerable to fraud.
Fortunately, advanced solutions that prevent fraud have shown great results in the airline and travel industries. Machine learning and artificial intelligence tools are improving in efficiency. With their help and a variety of other methods, a good travel fraud prevention team can curb fraud in the travel industry, increase profit margins, and cut down on the costs and time taken for manual reviews of transactions to prevent financial losses.
How are Online Travel Agencies Mitigating Fraud Risks and Safeguarding Revenue?
Online travel agencies need to be on their toes to preserve their revenue and reputation, and the integrity of their operations to grow and sustain their businesses. Modern online fraud prevention methods can protect you from fraud without jeopardizing the customer experience. Let us look at these methods:
Implementing Machine Learning-based Solutions
Machine learning-based models can be the backbone of your fraud protection strategy. These models can recognize patterns and predict outcomes. They help you identify anomalies in customer behavior in real time, flag an account-takeover attempt, analyze transaction riskiness, and block them before they result in a chargeback. ML-based fraud detection software like Signifyd and Riskified detects illegitimate activities related to payments, account creation, purchases, and chargebacks. They monitor websites, networks, and applications for fraud and prevent digital payment fraud.
It is important to remember that you need to strike a good balance between these preventive measures and your customer experience, so you do not lose business by focusing on only one aspect.
Transaction Monitoring
This method focuses on the credit card used for booking. Using an intelligence tool, check if there is a mismatch between the user’s IP address and their billing information and if the same user is making too many bookings from the same account or same card. Combine these insights with user verification and fraud scoring tools so you can reject suspicious transactions automatically. Also, keep an eye on changes to bookings to avoid problems, and follow the Payment Card Industry Data Security Standard (PCI DS S) to make sure card payments are as safe as possible.
User Profiling
Gather important customer data like email addresses, credit card information, loyalty points, and social networking handles. Behavioral data on what the customer does on your website or your mobile app, the devices through which the customer connects to the website, and their email address or location can help prevent fraud. Additionally, online travel agencies can verify users in the following ways:
Use an address verification service (AVS) and a card security code (CVV or CVC). Verify scanned ID documents using SaaS products to add another layer of security to every transaction.
Create a blacklist to block specific users if you notice any suspicious attempts.
Use device fingerprinting to block devices previously associated with fraudulent activities.
Anti-ATO Methods
To prevent account takeover attempts, deploy two-factor authentication for travel agents, and 3D secure PIN codes for end customers. Biometric technology and mobile payment wallet apps like Google Pay, and Apple Pay can curb swindlers from getting into a customer’s account without secure pins or fingerprints.
Verify Suppliers
Set up a process for verifying every supplier before making any payments. Check their business license, business reviews on Google, and check their Google Street View to confirm if a hotel actually exists at the mentioned address. Ensure that there is no correlation between a steep increase in hotel prices and booking activity because it could be a hotel price spike scam.
Block Bot Attacks
Any kind of abnormal spike in web or app traffic can be an indication of a bot attack. Real-time protection against bots can be a great way to handle illegitimate traffic. Compare every website request against the in-memory pattern database using ML and AI to check and block bots swiftly. Implement networking that can safeguard your domains within milliseconds upon detecting a bad bot.
Control Friendly Fraud
Chargeback abuses are hard to prevent. The only way to fight back is to document compelling evidence to prove that the said transaction was legitimate. Document order forms, tracking numbers, online travel agency customer communication logs, any kind of travel product redemption evidence, and confirmation for items delivered to an address that matches with the address verification service (AVS).
Air France Sped Up Manual Reviews By 70%
Air France wanted an easy way to access reliable information on potentially risky transactions. So they chose SEON’s Intelligence Tool.
“The time spent by Air France analysts on manual reviews is down by an impressive 70%.”
- Eric Facquet, Deputy Manager of Fraud Prevention at Air France
Summing It Up
Tackle online travel fraud head-on while keeping in mind your end customer. You must protect your customers from fraud in a way that is strong, practical, and well-balanced. This way should cover the customer's entire journey with you, both literally and figuratively.
FAQ
Which software tools can help with fraud detection?
Fraud detection software tools such as SEON, ClickGUARD, Riskified and Oracle Adaptive Access Manager can help detect fraud.
How can you improve fraud detection?
Use machine learning models to automate processes for fraud investigation, and regularly update rules for detection and how to handle alerts.
What does fraud detection software do?
Fraud detection software regulates accounts, payments, purchases, and events in real-time to detect any fraudulent activities. It also protects sensitive company and customer data.
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Hospitality Management
Article | June 19, 2023
The September 11th attacks. The Great Recession. The COVID-19 pandemic.
All three of these seismic and tragic events have resulted in heartbreak to humanity, including loss of life and our emotional well-being both individually and collectively. Of course, accompanying these global crises were monetary meltdowns reminiscent of the Great Depression that commenced in 1929 and lingered until the late 1930s.
After a “relatively” calm 70 years, the United States economy has suffered three devastating developments inside the last two decades, alone. There have been wars fought throughout the world and inflation escalations along the way, to be sure, but the start to the 21st century has suffered escalating and unusually concentrated economic calamities some that have profoundly altered the very fabric of our lives, both personally and professionally.
Indeed, on the business front, such periods have been among the most perhaps the unequivocal most trying of times. Amid current circumstances as the coronavirus rages on around the globe, I recently connected with internationally-renowned business restructuring executive James “Jim” Martin, founder of ACM Capital Partners with offices in Charlotte, Denver and Miami. Having spent the last three decades leading international middle-market companies through periods of distress and transition to actualize stability and growth, Martin is uniquely well-positioned to share insights on how business can rally to best assure a “COVID comeback.” Here’s what he had to say.
MK: First, before addressing the current coronavirus situation, what can you tell us about how you’ve helped companies navigate previous “rough waters”?
JM: Relative to the September 11th attacks back in 2001, I’ll share a representative example of a strategic pivot that didn’t just help a company survive, but actually drove profit. After that horrendous event, I stepped in to assist a large aviation maintenance repair-and-overhaul facility whose revenue had been cut fully in half immediately following the attacks the result of many carriers permanently parking older aircraft (including the 727 fleet). The sizable challenge presented was to maintain a 1000-person labor force while allowing the industry the necessary time to recover. To do so, we created a captive subcontracting company to which we transferred one-third of our labor force. During our troughs, we contracted this labor to our competitors and, during peak periods, we utilized this labor for ourselves. Thus, not only were we able to retain our skilled, well-oriented labor force during the recovery, but that very staff actually provided additional, supplemental profit. The end result was that we sold the business for $138 million, which provided our new investors with a 33 percent internal rate of return (IRR).
Less than a decade after 9/11, amid The Great Recession in 2008, I entered another industry that proved to be among the most brutalized by a global economic downturn: automotive supply. My client was a key supplier to the “Big 3” U.S. auto manufacturers.
At the start of 2008, the industry forecast was the production of 18 million vehicles in North America. Come summer, however, it was clear the automakers would not come near reaching that forecast due to the financial crisis. This did not come as a complete surprise to us, though, because amid our firm’s protocols we had had already fully immersed ourselves in our client’s industry and employed forecasting tools alerting us of trends ... this one in the wrong direction. So, we were privy to the situation well before management and others within the industry. By late June 2008, we instituted cost-cutting maneuvers and furloughs that enabled the company to withstand the industry’s brutal second half of ’08 that would result in two of the “Big 3” automakers filing for Chapter 11. Despite the industry producing less than half—as much as eight million—of its original vehicle-production forecast, our client not only survived, but ultimately grew and prospered.
MK: Turning attentions to COVID-19, what do you feel is integral for businesses to survive and recover?
JM: For businesses to recover from the coronavirus shutdown, it’s going to take a two-pronged approach: both financial and human capital. Starting with the financial, it will be a “loan-ly” world for those not well-versed in the intricacies of SBA, PPP and other “economic disaster” lending. Consider how expeditiously those programs were rolled out. Then consider how even more quickly they were scooped up. Did anyone really read those loan documents in full, or even halfway through, initially or even to this day?
My guess is at least half of the companies receiving COVID-related loans took a very “CliffsNotes” approach to these agreements. The result is there’s a solid chance funds were used incorrectly, which is going to make a lot of the loans, shall we say, less “forgivable.” For example, if your company’s payroll roster is shorter today than it was pre-virus, the portion of the loans forgiven is likely to be less.
And while your mind may rush to claiming ignorance and throwing yourself upon the mercy of the government to which you already pay taxes, realize that third-party capital is likely to participate in this market through securitization. This means that thousands of SBA loans could be bought, then packaged to be sold to the secondary market, at a discounted rate, no less. If this happens, understand that the purchasers will have the full intention of holding their borrowers (i.e. small business owners) to paying back 100 cents on the dollar.
So, those companies who received loans and are required, but unable, to pay them back in full may be exposed to either foreclosure or, worse, a “loan to own” scenario. In other words, much like the agreement that comes with your big-tech user agreements, like those prompting users to “click agree,” the fine print matters.
What this means to recovery is that, once again, cash is king: gather it; preserve it; cease lines of credit; liquidate what you can; negotiate costs down with suppliers. And if your company had a healthy bottom line pre-COVID, than a professional familiar with these trenches can help you look to refinance or bring in equity.
With all of that said, the key to a COVID-19 recovery is going to be adhering to the rules of a lender’s road, as well as the ability to navigate the red tape when you veer off that road. If you have read all the fine print and properly managed your loan, congratulations! You’ve acquired some really cheap capital. For those who didn’t do their research, however, this road to recovery likely will need some paving.
MK: What about the human capital you mentioned?
JM: Yes, and then we arrive at the human capital. Lots of companies today are excessively top-heavy. Remember the part about removing emotions from this process? Companies that quickly recognize cuts need to be made will be better positioned to recover than those who dawdle. Again, compiling and preserving cash is going to best position a business for recovery.
This is an instance where it’s especially beneficial to know when to pull triggers (best if earlier than others) and to make decisions that are not based on emotions a tall order for many CEOs, which is why many turn to turnaround experts. However it’s undertaken, what’s certain is that reducing human capital is painful, but it is also often necessary and almost always beneficial.
The upside is that, when the virus no longer exits, businesses can already be well-positioned for a fairly quick recovery. Maybe not v-shaped sans a vaccine, but quick relatively speaking due to the downturn having been so specific to one singular causing factor.
MK: Tell us a bit about your role as and general value of a turnaround expert when turmoil strikes a business.
JM: During times of difficulty, owners and executives can greatly benefit from specialized knowledge that’ll help them best navigate those unchartered waters that are often entangled in a lot of red tape. So, turnaround experts bring to the table a litany of tried-and-true “been there, weathered that” experience and expertise. There’s simply no substitute for engaging with a partner whose entire mandate is ensuring your company’s survival and success during some of the most grim and challenging times it might experience those professionals who are willing to spend sleepless nights figuring out how to ensure the company meets payroll; who’ll work around the clock to keep the company’s doors open; and who can tackle challenges without being hindered by emotions that understandably weigh on a business owner or manager. It takes this kind of specialized expertise, experience and grit to lead companies through periods of distress and transition, to stability and growth.
No stranger to corporate chaos, during Martin’s own three decades as a globally-regarded turnaround expert, he has reportedly created and restored nearly $1.5 billion in value to lower middle-market companies; raised an additional $1 billion in capital; and managed mergers and acquisitions in excess of $500 million all collectively representing his company restructuring portfolio valuation in excess of $3 billion.
Today, as the coronavirus continues to wreak havoc on business operations far and wide, take heed that there are various key strategic and creative tactics that can help businesses not only weather the storm, but even emerge stronger and more financially secure on the other side.
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Business Travel
Article | May 10, 2022
As the impact of COVID-19 subsides, the devasted travel industry appears to be resuming normalcy with increased travel volumes. In addition, emerging tourism trends and technology in the travel industry have offered new possibilities for business travel to redefine itself. The present opportunities available in the travel sector may benefit your firm. However, customer experience in the travel industry has a significant impact on growing long-term loyalty. Providing a positive client experience is a significant problem for many in the travel and tourism industry.
Customer Experience Is a Challenge to Recover
Customer experience is a critical component of the travel and tourism industry. As travel volumes have increased in the post-covid era, so have negative travel experiences. Business travelers who commute frequently have higher expectations. For a very long time, they have voiced their dissatisfaction, even before the leisure travelers complained. This imbalance has been exacerbated by COVID-19.
According to the American Customer Satisfaction Index, 38% of business passengers complained about the airline, double the percentage compared to leisure travelers. The actual question, though, is how to overcome this obstacle.
Some companies may go above and beyond to reassure travelers with honesty, openness, and unmatched customer service. You may improve the customer experience by implementing the following ideas.
Concentrate on the corporate culture
Give specific examples of consumer advocacy
Equip employees with the necessary tools
According to a survey conducted by Think with Google, superior customer service is the most compelling aspect for high-value travelers. Additionally, 60% of them agree that customer service is the most crucial factor when it comes to picking a brand to travel with.
CX Plays a Vital Role in Revenue Generation
Managing customer experience in travel can enhance the brand-customer relationship, ultimately leading to revenue growth. The adoption of technology for travel booking, ticketing, and expenditure management has improved the customer experience. Satisfied customers increase income and assist firms in calculating the return on their travel and cost expenditures.
Customer experience is a key differentiator that boosts customer happiness and loyalty, and both sells and establishes a competitive edge.
“CX is the difference between success or slump.”
— Chris Pescott, CEO of Perceptive.
Annual business travel expenditures will reach $1.7 trillion globally by 2022. According to Statista, nearly 500 million business travels will take place withing the United States each year by 2022.
Ways to Improve Customer Experience (CX)
Use Tech to Create Breakthrough Customer Experiences
Technology in the travel industry is regularly evolving. By putting technology at the center of each touchpoint, the industry is laying the groundwork for a successful customer experience in travel. Chatbots powered by AI and machine learning deliver client care 24 hours a day, seven days a week. Chatbots have been intelligently developed using cutting-edge technology and may be used in place of humans. AI is constantly evolving, making it more trustworthy and effective as a commercial solution.
Embrace an Omnichannel Mindset
With mobile devices accounting for more than 50% of online traffic, multi-device digital experiences have become the norm. In addition, today's customers interact with companies across various offline and online channels, frequently switching several times, and each stage of the journey must be seamlessly connected and consistent. As a result, adopting omnichannel is one of the most significant changes you will undertake.
Use Customer Journey Mapping
To create a customer journey, you must first understand your consumer. By comparing journey maps to core KPIs, you may gain a deeper insight into your customer experience and identify areas of concern and opportunity. You may use trip maps to enhance the customer experience and visualize the customer experience in the future. Alternatively, you may influence organizational transformation from the stage of inspiration to the planning and execution phases. Utilize all touchpoints and seek new possibilities for interaction.
Case studies:
KLM Royal Dutch Airlines
KLM's social care staff are well-known for their responsiveness and efficiency – the airline even shows a live countdown on its Twitter header picture to inform consumers when they may anticipate a response. However, what sets the organization apart is its ability to generate unique customer experiences.
Qatar Airways
Qatar Airways is elevating the business class travel experience. At a recent travel industry conference in Berlin, the airline unveiled its Business Class QSuite. This is the first time a business class cabin has been offered and sold with a real double bed. However, the organization goes a step further by providing value to consumers traveling for business. Additionally, the QSuite may be an open work and meeting room. Multiple configuration choices appeal to clients seeking privacy or personalization.
A score of 9.2 for audience insights indicates that the brand is in tune with its social audience well enough to cultivate an impressive number of committed followers.
Conclusion
The travel and tourism industry significantly benefits from nurturing an outstanding customer experience. Supremacy in customer experience can be offered with the help of sophisticated digital technology that can quantify effects and forecast behavior. In addition, as 'bleisure' travel continues to grow in popularity to blend business and leisure time, the customer experience in travel is increasing in relevance.
FAQ:
What are the benefits of a good customer experience?
A good customer experience increases sales and creates customer loyalty. Moreover, it reduces complaints.
How would you define excellent customer service?
Great customer service means responding promptly to a client's wants, being responsive to their concerns, and offering an enthusiastic level of care.
Do you value customer service or customer experience more?
Consumer service results in a positive customer experience. Both are critical to the business's success.
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