DIY vs. managed travel: What’s best for SMEs?

Whether you’re new to business travel or it’s commonplace in your company, there comes a time where there’s some decisions to be made around the subject. Do you want a DIY business travel solution or do you want to go the managed travel route? The decision may seem overwhelming, but no need to worry, in this article we’ll lay out for you the difference between these two approaches so you can get a clearer idea of what to expect and how to make the decision if you haven’t already done so.  

DIY business travel for SMEs

There are many approaches to business travel and one of them is the DIY approach. DIY or “Do it Yourself” can mean different things. Let’s take a look.

The piecemeal approach with different providers

The piecemeal approach to DIY means that you work together with different providers for each element of business travel and expense. For example, you might use a website to book flights, another one to book hotels, and you might have yet another provider for managing expenses for your business and for travel. All the different travel providers might be integrated together or they might work individually on their own, not as a standalone solution.

The downside of this approach

When you’re using so many different providers some of your tickets and information can get lost in the shuffle. You might have to have an individual protocol for each provider, and you might not even have a protocol for travelers to follow or it might be loosely defined. 

The all-in-one approach

The all-in-one approach is about using a travel management and expense platform to do it all. This means that you can manage your travel arrangements, whether that be by car, by train, or by flight all in one place, including your hotel bookings. In addition, travel expenses can be managed in the app by travelers on-the-go, and administrators can keep track of expenses and optimize to make the most efficient use of the travel budget. 

This is without a doubt the best way of managing T&E because it’s easier for everyone involved. You can have a built-in travel policy that’s automated so that when travelers book their trips, they know what’s in-policy and what’s not. For administrators they can easily approve trips and expenses. Finance teams can easily manage and optimize expenses so they can identify how their budget is being allocated and adjust accordingly.

Managed travel: what is it and can SMEs benefit from it

Managed travel means that your company relies on an external provider, like a Travel Management Company (TMC) to make travel arrangements. They help you create a travel policy and take care of things like budgeting, logistics, booking and analysis. TMCs tend to have established relationships with other travel providers, negotiating rates to help get the best deals. 

Can SMEs benefit from managed travel?

Managed travel proves to be a solution that isn’t always the best option for small and medium-sized businesses. Here are some reasons why: 

Managed travel or DIY for SMEs?

Arguably the best route for Small and Medium-sized businesses is to meet halfway between the managed and DIY business travel approach. The middle ground would be to work with a travel and expense management platform that helps you better manage your travel, but without having to commit to a three to six-month wait to have a complex travel program set up for you. A self-managed approach with the help of travel tech  like GetGoing is the ideal solution for your SME.