As travel spending increases, many Travel Managers and Arrangers are looking for new methods of effective spend management. Could investing in smart travel technology be the answer they’re looking for? 

If you’re a Travel Manager, Arranger or Executive within an SME, then you’ve probably noticed the increasing costs of business travel over the last year. As the Global Business Travel Association published in the summer, global business travel spending is expected to reach a record high of $1.48 trillion by the end of the year, with spending to surpass $2 trillion by 2028. Additionally, GBTA reported that more than two-thirds of business Travelers had increased their spending.

While this is great for the rebound of the business travel industry overall, it can still be challenging for Travel Managers and others aiming for effective spend management. Could smart technology solve this issue, though, allowing for more effective spend management despite rising costs? 

Many think this very well might be the case for several reasons.

How Smart Travel Technology Can Fuel Effective Spend Management

1. Smart travel technology supports tech-empowered data compilation that can provide valuable insights.

Effective spend management starts with gathering the right data. Without the right travel technology, however, gathering that data can be a clumsy, inefficient process that most Travel Arrangers or Executives struggle with. 

Investing in smart travel technology can allow for compiling data that applies to your entire organization- and streamlining it into easy-to-digest reports that allow you to see exactly the information you need in order to make smart, effective spend management decisions.  

This data can show you where you’re overspending, what areas you’re spending on the most and where your teams have room for improvement. While you might not be able to do much about the rising cost of travel, you can very likely do something to make your business travel more effective — so long as you have the data that empowers you to do so.

2. Smart travel technology leverages the power of AI.

The use of AI in travel is still growing, with Travelers, Travel Managers and Arrangers slowly getting on board with this relatively unfamiliar technology. However, for those who do adopt AI and the smart travel technology that leverages it, effective spend management becomes all the easier.

AI can seamlessly sweep through expense reports to flag any inconsistencies. It can comb through reports and look for patterns or possibilities that the human eye won’t immediately pick up on. It can even flag issues of non-compliance before they become an issue so you can address them as quickly as possible. 

3. Smart travel technology can automate tedious processes.

There are some parts of the business travel experience that are just unenjoyable in every way (well, at least for most Travelers). They’re chores that take up valuable time, time that busy Travelers don’t always have, even though those chores are necessary for compliance. 

Consider tasks like expense reporting, putting together travel itineraries, or researching various booking options.

Smart travel technology can make all of these a breeze by compiling itineraries in an instance, tracking travel expenses as you go or simply presenting Travelers with the best booking options automatically, based on factors such as your company’s travel policies, carbon reduction goals, budgets and other important elements. 

4. Smart travel technology cuts down costs related to sustainability and non-compliance.

Sometimes, a smart travel technology solution makes for more effective spend management not in helping you find deals or better balance your budget but instead in helping you avoid costly mistakes.  

Such can be the case when it comes to helping you find more sustainable travel solutions. Some smart travel booking platforms and tools—like ThrustCarbon, Spotnana and Goodwings—can align with your carbon reduction goals to show Travelers only options that ensure you stay within those goals. This could help you avoid costly fees or the necessary purchase of carbon offsetting credits that might arise due to your organization exceeding its carbon budget. 

Or perhaps that technology helps you avoid a non-compliance issue that puts your Traveler in a dangerous position. You’ve just avoided a costly legal issue, by ensuring the Traveler remained compliant with the help of your smart travel technology.

5. Smart travel technology can help you better the employee experience, thereby helping you retain and attract talent.

Lastly, smart travel technology can improve the overall Traveler experience. With employees more and more looking for roles wherein they’re not just compensated well but treated well, this matters. 

At the end of the day, if the smart travel technology simply allows you to retain talent and avoid turnover, you’ll have enjoyed more effective spend management after only that, all other perks aside. When turnover can cost you more than $100,000 per year, if you can make just one small investment that helps avoid turnover, that’s an investment well made.

Make Your Smart Travel Technology Work for You

Whatever smart travel technology you end up investing in, be sure that it results in more effective spend management by following a few key best practices:

• Before choosing a solution, thoroughly research your pain points and pick a solution that will address them effectively.
• Choose a travel tech solution with a proven track record.
• Get leadership’s buy-in first, which can help you then secure buy-in from your broader teams.
• Communicate with your teams at all levels to ensure everyone understands why a new smart travel tech tool is necessary and how to use it.