Digital transformation in travel sector: the inevitable importance of digitalisation for tomorrow's companies
Modern Business Travel Management: A Digital Transformation
Business travel is no longer just about booking flights and hotels. Travel management companies (TMCs) are now digital pioneers, delivering end-to-end solutions that are efficient, mobile, and compliant.
In the digital age, business travel programs have become a strategic part of corporate management, and as such, a top priority. Digitalization is the main driver of this transformation, streamlining processes, enhancing compliance, and improving traveler experiences through technology such as AI, mobile apps, and automated systems.
TMCs are indispensable partners in this digital transformation, offering technology-enabled platforms and services that simplify corporate travel, expenses, meetings, and compliance with increasingly complex regulations. They provide integrated booking, expense tracking, and reporting services while managing travel policies to enhance efficiency and transparency.
The benefits offered by TMCs during this digital transition include expertise in incorporating travel-specific software solutions, assistance with complex regulatory compliance, leveraging AI and automation to optimize travel spend, reducing manual processes, and offering a seamless, mobile-enabled traveler experience.
Despite economic uncertainties, the business travel industry shows resilience and growth with ongoing digitalization initiatives. Almost half (49%) of companies plan to increase their investments in digital technologies, indicating AI is on the radar.
"Chefsache Business Travel," an initiative by travel management companies within the German Travel Association (DRV), aims to position business travel as a strategic management topic. The initiative serves as a central information source and opinion leader on modern travel management for business leaders, travel managers, HR professionals, assistants, and business travelers.
Companies and those involved in business travel processes must respond to these changes by finding a balance between efficiency, security, employee satisfaction, and costs. Only 14% of companies currently actively use AI in travel management.
TMCs accompany companies throughout the entire digital transformation journey, offering not only the technical infrastructure but also consulting for digitalization, automated approval processes, and monitoring via dashboard. Alexander Albert, Chairman of the DRV Business Travel Committee, spoke about the state of digitalization in companies and why business travel programs must be understood and implemented as a strategic instrument with the right digital solutions.
In summary, digitalization transforms business travel management by enhancing operational efficiency, regulatory compliance, and traveler experience. TMCs provide critical expertise and technological frameworks to guide organizations through this transition smoothly and effectively.
- The strategic part of corporate management, as business travel programs have become, relies heavily on the incorporation of travel-specific software solutions and AI, which are key technology components offered by travel management companies (TMCs).
- In the business travel industry, digitalization initiatives are proving resilient, with nearly half of the companies planning to boost their investments in digital technologies, including AI, to ensure a seamless traveler experience and optimize travel spend.
