3 Risks of Unmanaged Employee Travel

Some small companies may think that formulating a travel policy and designing online booking tools is a hassle which they can do without. However, such companies often don’t realize the risks that come with allowing employees to book travel services using any option that they prefer. The discussion below looks at the major shortcomings of unmanaged employee travel.

 

Loss of Leverage. Employees who book using tools which haven’t been approved in the travel policy deny your company valuable data which you can use to negotiate preferential rates with the service providers that you would like to do business with. For example, you may find it hard to ask a hotel chain to waive some charges since the number of rooms which you book each year cannot be verified during the negotiations.

 

Duty of Care Audits are Difficult to Conduct. Your duty of care program should be reviewed periodically in order to plug any gaps which emerge. However, such a review process can be difficult to perform in case your employees book using tools which aren’t known or approved by the company. Consequently, lapses may go unnoticed until a major incident occurs. You will be held liable for those incidents since it will be concluded that you breached your duty of care obligations to the employees.

 

It is Hard to Process Claims. Unmanaged travel also creates a nightmare for your finance department since it is hard for them to verify each claim made by your employees before their expenses are reimbursed. These difficulties can prolong the claims settlement process and this can result in employee dissatisfaction.

 

Design a robust travel policy which accounts for the various trends emerging in managed travel, such as various booking tools available on mobile devices. Clarify what your priorities are as you formulate that travel policy. For example, some companies prioritize getting the most affordable accommodations while others give priority to employee comfort and safety. You can get the best of both worlds if you hire CrewFacilities and allow them to manage all your employees’ work-related trips. CrewFacilities can also give you advice on where to tweak your travel policy so that it suits the times.