What to know about using a corporate travel agency

Quick insights

• Businesses with employees who travel frequently may use a corporate travel agency to manage employee travel programs.
• Corporate travel agencies help perform tasks like booking travel, negotiating with vendors and providing emergency support services for traveling employees.
• Companies may want to consider their size and travel frequency when determining if they want to hire an agency.

Corporate travel can play an important part in the growth of a business. While travel is an expense to the company, it can be used as a tool for networking, client visits and employee development and training. These experiences may result in business opportunities that outweigh the cost of flights and lodging.

Companies with many employees traveling for business may look to a corporate travel agency to manage employee travel. Let’s break down what corporate travel agencies do and the potential benefits they provide.

Benefits of corporate business travel

Corporate travel refers to the travel done by the employees or executives of a company for business purposes. It can include trips to attend meetings, conferences, site visits, sales activities or any travel that is necessary for the business or its operations. Unlike leisure travel, corporate travel may be planned, organized and often funded by the company.

Some benefits of corporate business travel can include:

• Relationship building
• Professional development
• Face-to-face meetings
• Increased visibility for the company or its employees

Corporate travel can take place on a significant scale at large, global corporations or it may only be an occasional expense for businesses that are local or have small operations. For companies that fall in the first category, they may rely on an outside service—often a corporate travel agency—to help manage and run employee travel programs.

Business travel company duties

A corporate travel agency specializes in managing and organizing travel arrangements for businesses. These agencies provide a range of services that can include:

• Booking flights, hotels and transportation
• Managing travel expenses and itineraries
• Negotiating with vendors

A corporate travel agency may be particularly beneficial for companies with frequent travel needs or those lacking in-house resources to manage employee travel effectively. These agencies also may have strong connections within the travel industry that allow them to secure premium services or cost savings for the company.

Services provided business travel companies

Business travel agencies are designed to help make corporate travel efficient, safe and comfortable for employees. They can provide a wide range of services and functions, including:

• Travel booking: Agencies often handle booking flights and accommodations. Due to their industry connections, they may be able to secure better rates and options.
• Itinerary management: They can create detailed itineraries that include travel details such as flight times, hotel addresses and meeting schedules. This information is sometimes available through mobile apps or online platforms.
• 24/7 support: Some corporate travel agencies provide round-the-clock support to address issues that can arise during a trip, like flight cancellations and emergency accommodations.
• Policy compliance: Agencies typically work with their clients to ensure employee travel adheres to the company policies and budgets.
• Visa and passport services: They may be able to assist with visa and passport requirements, confirming that necessary travel documents are up to date and meet the entry requirements.
• Risk management: Some agencies may monitor global events and provide real-time updates and advisories to business travelers.
• Expense management and reporting: Corporate travel agencies may also offer tools and services to help companies track and report travel expenses, simplify the reimbursement process and provide insights into travel spending.

Considerations when using a corporate travel agency

Corporate travel agencies can help manage business travel to do their resources and connections. However, a company using a corporate travel agency may also experience a lack of control over travel arrangements or the inability to choose travel options outside of the agency’s recommendations.

For smaller companies or those with employees who travel infrequently, they may find that the cost of using a corporate travel agency does not make financial sense.

When considering whether to use a corporate travel agency, many companies will take into account the company's size, travel frequency and if the company has specific travel needs that can or cannot be met by an agency.

In summary

Corporate travel agencies can provide a useful service to companies that manage a significant amount of employee travel. With all that goes into employee travel—including bookings, costs, policy implementation and vendor negotiations—businesses may find that outsourcing the management of employee travel to an outside agency is worthwhile investment, both for the company and its employees.