2020

Business Travel Risk Management and Mitigation

1

Can my organisation use

technology to manage travel

risk?

How can I save money through

risk management?

Can risks in business travel

affect my company’s reputation?

What role do the CXOs play in

travel risk management?

What are the risks involved in

business travel?How do these

risks impact my organisation?

What should my TMC or service

provider be doing to mitigate risks?

Is my organisation

managing business risk efficiently?

?

?

?!

!?

FCM thanks KPMG in India for its contribution to this report

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India’s contribution to the $1.6 trillion globalbusiness travel market will grow as it evolvesinto the 5th largest business travel market in theworld. This acceleration is being driven by aseries of macro factors driving overall GDP -SME maturity, entrepreneurial aspirations, amillennial workforce, growing international tradeand technological developments.In the knowledge economy, travel tends to bethe third biggest cost driver after people andinfrastructure. As businesses experience rapidcross-border growth, they are increasinglyexposed to a number of financial and non-financial risks. Dynamic pricing by airlines orhotels reduces trip cost certainty while the HongKong protests and the more recent Coronaviruscrisis can disrupt business materially in additionto putting talent at health and safety risk.The management of business travel isfrequently delegated to administration andprocurement managers but is an area worthy ofCXO attention. Duty of care lapses can havepotentially catastrophic consequences andtravel must be aligned with the broader riskmanagement principles adopted by companies.TMCs must take responsibility for embeddingtravel risk management into a client’s strategicrisk management framework.Through this whitepaper, we aim to bring intoperspective the multiple risks involved inbusiness travel and their potential impact oncost, employee safety and organizationalreputation. Our goal is to connect with Indianbusiness leaders, CXOs and decision makersand present mitigation measures to addressthese dynamic issues, particularly given thevolatility and fragility of the current geopoliticalenvironment.

India has the fastest business travel growth ratein the world. This boom in business travel isdriven by overall economic growth, a young anddiverse population, an entrepreneurial spirit, risein SMEs and enabling technologies.As the business travel industry matures, numberof risks have surfaced, with varying degrees ofimpact. These risks, as we witness world-wide,could range from geo-political tensions, cyberthreats, business turmoil, to life-threating naturaldisasters. Risk management is hence critical.Business travel risk management has becomeincreasingly relevant in today’s dynamicbusiness environment. There is a growing needfor all stakeholders to collectively ensure risk-free travel. This demands attention from the topmanagement level. Carefully optimised travelrisk management practices, collaborativelyimplemented along with Travel ManagementCompanies (TMC) and other relevantstakeholders, is a must for organizations tomitigate risks and focus on their businessobjectives.

Foreword

Jaideep Ghosh, Partner, LeisureKPMG

Rakshit Desai Managing Director

FCM Travel Solutions – India FCM is part of Flight Centre Travel

Group, Australia

Table of Contents

Foreword 2

1. Executive Summary 4

2. Understanding the Business Travel Landscape

9

3. Identifying Business Travel Risks 16

4. Impact of Business Travel Risks 30

5. Risk Management through Stakeholders 42

6. COVID 19: Impact on Business Travel 62

7. Way Forward 68

8. Glossary 73

Executive Summary

5

The global business travel market isexpected to grow steadily over the next fewyears, with Southeast Asia showing thestrongest growth. The Global BusinessTravel Association (GBTA) predicts a $1.6trillion business travel market by 2020 whichcould expand to $1.7 trillion by 2022.1

Simultaneously, Asia Pacific business travelspending is expected to rise to $900 billionby 2025, accounting for approximately halfof the world’s total business travel spend.2

As businesses continue to crossinternational borders to grow and expand,they are more likely to be exposed to a widearray of travel risks such as politicaluncertainty, natural calamities, trade wars,airline collapse, etc.India’s annual growth in business travelspend is at 11.4%—the largest rise amongthe top 15 business travel markets globallyin 2019.3 It is expected to increase to ~USD93 billion by 2030.4 As this market growsand matures, companies have becomecognizant of their travel requirements andhave begun to align their businessobjectives through comprehensive travelmanagement programs. Such a programcovers functions such as needsassessment, budgeting, policy formation,stakeholder management, with a growingfocus on risk management.

Executive Summary

Collapse of Travel

Service Providers

Geo-political Uncertainty/

Domestic Unrest

Diplomatic tensions including

inter -country

trade wars

Flight Delays

Others such as

petty theft, visa

issues, etc.

Natural Calamities

Disease Outbreaks

1.23 tn

1.6 tn

1.7 tn

Figure 1: Global Business Travel Market

2018 2020(P) 2022(P)

53%

52%Of companies surveyed believe geopolitical threats and civil unrest will cause modified travel in 20205

of employees feel that travel policy is lax or unclear7

90%Of Indian employees believe that business travel affects their overall job satisfaction6

87%Of Indian employees believe that quality of business travel affects their business results6

Figure 2: Risks in Business Travel (Global)

Source; 1. ‘Travel and Tourism Economic Impact 2019’, World Travel and Tourism Council; 2. ‘The Future of Business Travel in Asia Is the Future of Business Travel’, Skift 2019; 3. GBTA; 4. KPMG Analysis; 5. International SOS Travel Risk Outlook 2020 Ten Predictions; 6. GBTA; 7. American Express GBT Traveller 360 survey

6

Types of Business Travel Risks

Policy Violation Risks: Whether travel program is developed inhouse or outsourced to a TMC, understanding why employees violate policy is key for mitigating the risk of non-compliance. Some reasons include better hotel locations and personal preferences.

Travel Program Risks

In-house Risks

Outsourcing Risks

Profitability Productivity Reputational Legal

Lax policy formation and compliance Lack of scale for optimized travel bookingsTechnological constraints

Travel Specific Risks

Pre Trip Risks

Risks during Trip

Post Trip Risks

Additional costs and contractual risksData leakages Integration and compatibility issues

High fares and fluctuating forex ratesLack of immunization or emergency detailsLimited insight to visa process and alerts

Delays, cancellations, extension of stayEmergencies, unforeseen expensesNo 24/7 assistance, loss of belongings

Expense management Unnecessary or delayed approvalsNon-compliance of travel policies

Impact of Business Travel Risks on an Organisation

• Last minute travel leads to higher fares

• TMC complacency or lack of knowledge leads to inflated deals

• Unforeseen expenses

• Policy non-compliance can lead to higher spends

• Complicated travel processes, issues with TSPs*, subpar hotels and lack of destination knowledge can disturb business activities

• Last minute travel, hectic schedules, inconvenient flights, absence of bleisure can lead to employee burnout

• Travelling employees represent the organisation

• ‘Duty of care’ is the responsibility of organisation to employees

• Cultural differences and miscommunication can adversely impact business relations

• Contract negotiation risks including hidden clauses, inflated prices, loose SLA

• Visa fraud, exceeding forex limits or maximum stay duration

• Data security and privacy laws

• Employee related risks with legal implications

*Travel Service Providers

7

CFO

CIO

Travel Managers

TMCs

• TMC selection using a holistic outlook considering factors beyondprice, such as services offered, global presence, technologicalofferings, etc.

• Empowering travel managers for quick decision making, continuousrevision of policies. 27% of CFOs think their relation with travelmanagers is effective8

• Focus on curbing employee overspending and non-compliance. 33%of employees overspend when travelling9

• Introduce new technologies to reduce the risks of outdated technologies. 77% of employees believe their firm is late in adopting technologies10

• Ensure compatibility with organization's IT systems and culture to ensure usage of tools. 95% of organisations are undergoing digital transformation11

• Formation of a robust travel policy: defined timelines, automated compliance, trainings, etc. 53% of employees would follow policy if it were clearer12

• Data security through encrypted devices, secure VPN, GDPR, etc. • TMC coordination in terms of system integrations, flow of information,

MIS reports, last minute changes.

Travellers

• Support such as dedicated resources, transparent processes, detailed travel briefs. 97% of employees want incentives to comply to policy13

• Travel management activities such as policy communication, travel risk rating, ensuring best rates, emergency services, tracking, bleisure, feedback

• Review and improvement analysis of travel data. 72% face problems in expense management13

• Comply with policies and adhere to briefings, alerts, travel allowances, expense submission timelines, etc. 66% violate travel policy13

• Maintain professional behavior with colleagues and adhere to work place norms at all times. 47% travel to foster existing business relations14

TravelService

Providers

• Timely communication on delays, cancellations or complications • Adhere to SLAs and cyber security and data privacy laws• 80% of fortune 500 companies have tied up with ISOS for

emergencies15

Figure 3: Stakeholders and Travel Risk Mitigation Techniques

Source: 10. Moneycontrol, Primary interactions; 11. Economic Times; 12. American Express GBT Traveller 360 survey; 13. American Express Global Business Travel, 2018; 14. Skift, Trip Actions 2020 Business Travel Survey; 15. Hindu Business Line, 2019

8

• An organisation’s preparedness regarding business travel risk management can varyacross five levels from underactive to optimised, depending on systems and processes

• TMCs can play an influential role in assisting an organisation in progressing acrossstages to optimizing their risk management, such as:• Travel Management Systems including, improving process automation, reducing

turnaround time, consistent data reporting and IT system integration• Travel Processes including, pre trip debriefing, travel itinerary, insurance coverage,

travel alerts, emergency response systems and expense reporting optimisation

Business Travel Risk Management Preparedness Spectrum

Underactive Reactive Active Proactive Optimized

COVID

COVID 19: Impact on Business Travel

Situation16 Risks Impact17

Role of TMCs

• As the spread of COVID escalated at an unprecedented rate, many business travellers were stranded and dependant on their TMCs for safe passage to their homes.

• In such times, TMCs can leverage their vast expertise, industry connections and global networks to resolve complications that may arise such as unavailability of flights, miscommunication with airport authorities, additional hotel bookings required, etc.

Financial Risk

Personal Risk

Regulatory Risk

Other Risks

Travel Program

Risk

>90% Of companies cancelled/ postponed business

meetings/ trips/conferences/ events, etc.

54% of the forecasted business travel spend for 2020 could potentially be lost due to corona induced travel bans and cancellations

Global Cases: 3,012,224Global Deaths: 207,860

India Cases: 27,977India Deaths 884

Source: 16. Worldometer, 17. GBTA

Understanding the Business Travel

Landscape

10

As economic conditions are anticipated toimprove around the world, the globalbusiness travel market is expected tocontinue to flourish. The Global BusinessTravel Association (GBTA) predicts a $1.6trillion business travel market by 2020 whichcould expand to $1.7 trillion by 2022.Travel and tourism contributes ~10% to theworld’s GDP, with business travelaccounting for ~22% of the industry.1 Withan increasing number of organisationspursuing business opportunities in diversegeographies, the business travel industryhas grown significantly.According to the World Bank, internationaltravel departures have more than doubledfrom roughly 600 million to 1.3 billion overthe last two decades.2 Asia Pacific hasregistered the highest growth in terms ofbusiness travel in 2018.

Driven by India, China, and other emergingeconomies of Southeast Asia, businesstravel spending is expected to rise to $900billion by 2025.3 Consequently, businesstravel spending in the region is expected toaccount for half of the world’s total businesstravel spend by 2025.3

Global Business Travel Risk Overview

1.15 1.23

1.6 1.7

2016 2018 2020(P) 2022(P)

Figure 1: Global Business Travel Spending 2019

in USD Trillion

Figure 2: Top 15 Travel Markets with % Business Travel Spends1

Business Travel Spend as a % of Total Travel Spend

>30%

Between 15% to 30%

Less than 15%

• USA, China and Japan have the highest travel spends globally

• Turkey, China, India, Thailand, and France recorded the highest travel spend growth in 2018

Source; 1. ‘Travel and Tourism Economic Impact 2019’, World Travel and Tourism Council 2. GBTA; 3. ‘The Future of Business Travel in Asia Is the Future of Business Travel’, Skift 2019

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As business travel market grows, the risksinvolved in business travel grow in tandem.Nearly half (47%) of business decision-makers in an 82-country survey byInternational SOS and Control Risks believethat travel risks have increased in 2018.Going forward, 52% of respondentssurveyed foresee geopolitical threats andcivil unrest to drive travel changes in 2020.Given current state of geopolitical ambiguityand domestic unrest, organisations arebeing cautious about allowing theiremployees to travel to certain areas.Amongst protests in Hong Kong, Brexit,Saudi drone strikes, US-Iran/Chinatensions, etc., business travel to theselocations has taken a hit.In 2018, approximately 3.9 million flights –or 10,700 a day – were delayed by over 30minutes or cancelled globally,4 affectingmillions of passenger journeys. Flight delaysand cancellation cost airlines globally US$30 billion a year in lost revenue, in additionto costs borne by their passengers.4

Other factors such as natural calamities;Australia bushfires, California wildfires,hurricanes in the USA, disease outbreaks,petty theft of personal belongs such aslaptop, passport, etc. are also potentialdisruptors for business travel.

Political Uncertainty

The US-China trade war has adversely impacted the flow of

Chinese travellers to USA

Diplomatic Tensions: Inter Country Trade Wars

Thomas Cook Group PLC* and Indian Airline Jet Airways shut down

operations in 2019, while many others are facing troubles

Challenging environment for Travel Service Providers

In 2018, Approximately 3.9 million flights were delayed or cancelled

around the world.

Flight Delays

Figure 3: Global Travel Risks

~6%decline in travellers despite high growth in previous years6

470 million passengers were affected by this4

Political instability in certain regions such as protests in Hong Kong and

Saudi Arabia, Brexit

40% decline y-o-y in tourism for Hong Kong in 20195

Natural Calamities

Others

Disease Outbreaks

Petty TheftVisa Issues

Source; 4. Global survey by Cirium; 5. The Economist; 6. ‘Chinese tourism to U.S. falls amid trade war, China's cooling economy’, Chicago Tribune 2019 *Thomas Cook UK, Germany, Scandinavia, France & Belgium

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India’s annual growth in business travelspend is at 11.4%—the largest rise amongthe top 15 business travel markets globally.In 2019,7 India’s business travel marketstood at USD 30 billion in 2017 and isexpected to increase to USD ~93 billion by2030.8

India’s young and skilled population makesit well positioned to become the businessdestinations for other countries. On theother hand, Indian businesses are exploringnew geographies to expand and diversifytheir business.This two-fold push to business travel isenabled by technological advancements

such as self-booking tools, mobile apps fortravel planning and timely security alertsetc.India’s bustling start up industry andgrowing SME segment has also added tobusiness travel growth. With Online TravelAgents (OTAs), low cost airlines,emergence of sharing economy services,business travel has become moreaccessible for all. As this market grows andmatures, companies are becomingcognizant of their travel requirements andhave begun to align them with theirbusiness objectives through acomprehensive travel management program

Figure 4: Growth Drivers for Business Travel in India

Rise in SME travellers and Entrepreneurs

• SME Business travel market is at $7 billion9

• Nearly 25,000 SMEs registered on OTAs9

Increase in Travel Service Providers and OTAs

• Emergence of OTAs for business travel bookings

• Sharing economy services: Airbnb, Uber

New Destinations for Business

• Indian companies exploring new business destinations such as Indonesia, Vietnam, Uzbekistan, Israel, Turkey, etc.

Millennial Dominated Workforce

• Millennial are projected to be 50% of the workforce by 2020, and this number is expected to reach 75% by 202510

Growth in Tier 2 Cities

• Smaller cities surged by 79 percent compared with just 21 percent in metropolises in total FDI11

• Tier II cities of ten Indian states account for more than 75 percent of India’s aggregate GDP11

Technology Enabled Processes

• Ease of availability of information on business destinations

• Efficient and convenient travel process

• Constant connectivity to work on the go

Source; 7. GBTA; 8 KPMG Analysis; 9. Makemytrip.com 10. A study by Society for Human resource Management; 11. Forbes, 2016

13

Needs Assessment

Budgeting

Policy Framing

Stakeholder Management

Risk Management

As travel needs become more diverse,travel management is undergoing a shiftfrom micromanaging towards trust andefficiency. As organisations have a variety oftravel services providers to choose from,transparency and simplicity of services is animportant factor to consider.In India, 87 percent of travellers in a recentsurvey by GBTA believe that the quality oftheir business travel impacts their businessresults and over 90 percent feel that itimpacts their overall job satisfaction. Thus,a robust business management programmeis a necessity to allow organisations tofocus on their core businesses.Multiple factors must be taken into accountto develop a travel programme that is bestsuited for an organisation. This may varyfrom organisation to organisation;comprising mainly five functions; needsassessment, budgeting, policy formation,stakeholder management and riskmanagement.

Needs AssessmentFor a thorough business travel program, abalance must be maintained between thetravel requirements of the organisation andthose of the business traveller. The needs ofan organisation can vary depending on thesize, nature, industry and location ofoperations. For example, companies withinternational travel requirements have tofactor in foreign exchange, visa processes,health conditions, etc.On the other hand, the business travellerneeds are similar in nature acrossorganisations. Business travel is one of thekey motivators for improved workperformance. With a young tech savvyworkforce, employees expect a seamlessbusiness travel experience. Thus,employers and travel service providers mustadapt to the latest technologies to keeppace with evolving business travellerpreferences.

Key Functions of Business Travel Programs in India

Figure 5: Key Functions of Business Travel Programs in India

Organisation• Cost effective

processes • Reliable and

controllable services

• Industry expertise

Traveller• Convenience• 24/7 support • Information • Choice

Figure 6: Needs of Businesses and Travellers

14

BudgetingOnce the purpose of the travel program hasbeen defined through the needsassessment, a budget must be allocated tomanage the travel spends.Budgeting places a critical role as businesstravel is the 2nd largest expense in mostorganisations, after employee salaries. Thisprocess includes negotiating the best rateswith TMCs, hotels, airlines, vendors.In certain cities, MICE (Meetings,Incentives, Conferences, Events) spendsper traveller has reached up to ₹ 500,000per person for a six-to-seven-nights trip. 12

To keep such costs in check, expensemanagement and adoption of latesttechnologies and industry best practices arecrucial.

Figure 7: Budgetary Elements

Policy FramingThe business travel policy is the guidingdocument for all business travel, coveringall procedural aspects. With acomprehensive policy in place, employeescan be aware of what they can and cannotdo and how to go about planning theirtravel. It outlines the responsibilities of bothemployees and employer such as corporatecard usage, personal expenses, etc. Thetravel policy should clearly define timelinesi.e. the ideal time, between when a trip isplanned to when it is booked to completionof post trip formalities, should all bestipulated within the policy.However, travel policies need to account forevolving customer needs and newpractices. While most companies have atravel policy, more than half of Indianbusiness travellers book out of policy or arenot aware of the policy. This can lead todata leakages, security risks and otherissues. Hence, the travel policy should bedrafted in such a way that it can be easilyaccessed, followed and implemented, formaximum efficiency

Figure 8: Elements of Business Travel Policies

53%

TimelinesApprovals required

Do’s and Don’ts while

travelling

90%

Reimbursement

Of Indian companies have a travel policy13

of employees feel that travel policy is lax or unclear13

IT Automation for Process

ImprovementAir Transport Ground

Transport

Meals Hotels Others

Source; 12. SMEfutures.com; 13. American Express GBT Traveller 360 survey

Source; KPMG Analysis, Primary Interactions

Source; KPMG Analysis, Primary Interactions

15

Stakeholder ManagementAt various stages of business travel,different stakeholders are involved. There isa constant need to communicate with thesestakeholders to ensure free flow of marketknowledge and continuous processinnovation. To ensure this, building andmaintaining relations with externalstakeholders such Hotels, Airlines and otherTSPs is important.Internally, understanding the travel needs ofemployees and keeping them satisfied canlead to a more productive workenvironment. Interactions betweendepartments are also necessary for timelycompletion of travel processes such asbookings and re-imbursement, includingapprovals from CFOs and CXOs.Travel programmes highlight this interplayby defining Key KPIs for externalstakeholders and monitoring and improvingprocess for internal stakeholders. The rolesand responsibilities of each player should beclearly articulated in a travel programme.

Risk ManagementAt every stage of business travel, there isan element of risk. With multiplestakeholders involved, there is potential fordisruptions. As the duty of care lies on theorganisations/employees, risk managementof business travel is an important element ofany business travel program.These risks can range from financial,technology, employee safety, TMCperformance etc. to unforeseeable eventssuch as natural calamities.While some risks can be alleviated throughclear communication and marketknowledge, others may require morecomplex methods of mitigation. In suchcases, it is imperative to define who isresponsible for it and what actions need tobe taken. TMCs can guide organisations ontravel risk management as they have vastsector knowledge and years of industryexperience. Depending on the degree ofrisk, certain technologies can also beleveraged to ensure a safe and productivebusiness trip

Internal Stakeholders

External Stakeholders

Employees/Travellers

Travel Managers

Admin/HR/Finance

CXOs

TMCs

Hotels

Airlines

Cab Vendors

Other TSPs

Figure 9: Players in Business Travel Ecosystem

Business

Travel

Program

Source; KPMG Analysis, Primary Interactions

Identifying Business Travel Risks

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In today’s increasingly global world,business travel is on the up rise asbusinesses expand beyond their localeconomies. Business travel is an essentialpart of several professions and often servesmany purposes beyond business relatedobjectives. It enhances employee relations,encourages professional development andis often considered an enjoyable exercise,increasing work life satisfaction.

However, travelling outside the office oftenposes risks for both the employers and theemployees, irrespective of whether it iswithin the same city or international travel.The type and severity of the risk varies inaccordance to several factors, such astravel location, travel duration, geopoliticalsituation, etc. These risks can becategorized into two – travel program risksand travel specific risks.

Identifying Risks in Business Travel Programs

Travel

Program Risks

Travel

Specific Risks

Types of Business Travel Risks

Risks associated with thechosen method of travelmanagement – in-house travelmanagement or outsourced to aTravel Management Company(TMC)

Choice between the twodepends on several factors suchas travel requirements, firm size,economies of scale, internalcapabilities, complexity of travelneeds, etc.

This also includes risk ofemployees violating establishedtravel policies, either intentionallyor due to lack of knowledgeabout the policies

Risks associated with the actualtravel undertaken by employees,with the journey beingcategorised into three phases -pre trip, during trip and post trip

These risks involve severalstakeholders at each stagewhich need to be consulted

Beyond the traveller’s journey,erratic risks such as geopolitical,environmental and cultural risksalso exist.

These risks vary in frequencyand severity, requiring differentprevention and mitigationmethods

Travel Policy Violation Risk

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Business travel management can beundertaken in house by establishing a traveldepartment which assists employees inmanaging travel bookings. While this allowsemployees greater independence in findinghotels that best fit their needs, it has limitedvisibility and may prove difficult to managelast minute bookings or cancellations in ahassle free and cost effective manner.

This model is usually opted for by smallercompanies as their travel needs may not belarge or complex enough to necessitate useof a TMC. Companies often use selfbooking online tools or Online TravelAggregators (OTAs) to search for the bestdeals. Additionally, with the rise of thesharing economy, platforms such as Airbnband Uber allow cost optimization as well.

1.1 Travel Program Risks – In House Travel Programs

• Empowered and independent employees free to choose preferred service providers and booking channels

• Regular assessment of travel policies and personnel to identify areas of improvement through data analysis

• Avoids additional costs incurred in hiring an outside agency

• Reduced risk to sensitive employee and company data as lesser data is shared with external parties

• Ensuring compliance and avoiding travel policy violation is more complex with in house company travel managers

• Unclear ownership of travel risk with multiple data sources and lack of visibility

• High travel expenditure due to lack of specialized vendor relationships and exclusive corporate deals

• Expense management providers may still need to be enlisted for insight into policy performance

ChallengesBenefits

Associated RisksFinancial – Volatility of foreign exchange rates and limited economies of scale may result in a company overpaying for forex or travel arrangements when handling travel management in house on a smaller scale

Technological – Small in house travel departments may not have the budget or capability for the most advanced technological tools for travel management

Policy Related – Policy may not be comprehensive enough to ensure all aspects of business travel risk are accounted and prepared for

Process Based – Different countries have differing visa processes and travel requirements which the company travel manager may not be familiar with or well equipped to handle

19

Large global companies tend to outsourcetheir travel management to TMCs tomanage their complex and varied travelrequirements across geographies. As needsof Small and Medium Enterprises (SMEs)also diversify and expand, they too havestarted enlisting TMCs to streamline andoptimize their business travel management.

As convenience increases, so do the risksas more external parties have access tosensitive personal data. However, using aunified system for managing travel bookingsleads to greater process transparency andavailing benefits of vendor relationships.TMCs also have specialized emergencyresponse systems for traveller emergencies.

1.2 Travel Program Risks – Outsourced Travel Programs

• Transparent and centralised process to manage travel related matters

• End to end management through a single entity handling all aspects of travel

• Increased visibility for all stakeholders and reduced approval time

• Consistent systems and processes improving data consolidation and insights

• Access to special deals and corporate discounts due to TMC tie-ups and economies of scale

• Additional cost of TMC services• Companies yet to open up on sharing

sensitive employee and company data• Need to address challenges in

integrating company systems with TMC IT platforms

• Lesser flexibility as bookings must be done through certain TMC channels only

• Harder to regularly review TMC performance for process improvements

ChallengesBenefits

Associated Risks

Cultural Compatibility – Given that TMCs work closely with the company’s employees, cultural incompatibility can affect efficiency and process compliance

Data Management – Travel data includes sensitive personal and company data which must be handled and stored in a safe and secure manner, and policies regarding use by third party agency like TMCs, OTAs, etc. must be formulated

Reliability – With large TMCs like Cox and Kings and Thomas Cook facing financial distress, reliability and market reputation of the TMC is another risk

Financial and Contract Risk – Selecting a TMC based on lowest cost instead of value proposition can lead to financial losses. Additionally, unclear SLAs, lack of KPI visibility and lengthy contract period are some TMC contract risks

20

Choosing the right TMC to match thecompany’s travel needs is essential toensuring an optimal fit. Five key factorsmust be considered while making thisdecision – cost and value added services,technological capabilities, front and backend support, data analytics and security,and brand image and sector experience.Enlisting a TMC involves additional costs foravailing their services. However, this is oftenoffset in terms of savings realized throughthe TMC’s expertise and supplierrelationships which allow subsidized ratesand special offers.Beyond costs, technological capabilities ofthe TMC make a palpable difference to thebusiness travel experience. Using latesttechnology to streamline the process canimprove visibility at all levels resulting in ansmoother experience from beginning to end.

Working with a TMC requires integration ofsystems as well as communication of keypriorities and needs. This requires activefront and back end support to ensureseamless functioning between the twoentities. Additionally, it also proves essentialduring any emergency situations that arise.Sensitive personal data is shared withmultiple entities in the travel process alongwith gathering new data about the travelprocesses and expenditures. It is importantto ensure robust measures for data securityand tools for insight driven data analysis.Service delivery differs across TMCs andbrand image can be a good indicator forevaluating whether the TMC is a good fit forthe company’s needs. Additionally, differentsectors may have different travel needs andthus experience in the same is important fora customized and hassle free experience.

Choosing a Travel Management Company (TMC)

Cost and Value Added Services

Data Analytics and Security

Brand Image and Sector Experience

Front and Back End Support

Technological Capabilities

Figure 10: Important Factors when Deciding on a Travel Management Company (TMC)

21

Journey of an Indian Business TravellerPr

e Tr

ip User travel request through

Physical Email SBT*Policy check and approval

Employee ready for travel

TMC makes bookings as per policy

Taxi to airportAirport arrival and boarding Departure from

origin

Land at destination Mobile app.

Book taxi using

HailingTaxi to hotel

Check-in at reception

Arrival at hotel

Local travel using

Mobile app. Local taxi

Travel request, approval and bookings

Taxi to airport

Airport arrival and boarding Departure from destination Land at origin

Expense claim submission

Offline OnlineOffline verification

and approvalClaim settlement

Departure from origin

Arrival at destination

Stay at destination

Arrival at origin

Post travel formalities

HailingMobile app.

Book taxi using

Electronic key for check-inMobile app. Hailing

Taxi to Airport

Dur

ing

Trip

Post

Trip

Pre

Trip

Dur

ing

Trip

* Self Booking ToolNote: This process is only indicative of air travel, similar process could be used for train/road journeys

22

Prior to the commencement of the trip, thereare several preparatory steps that need tobe undertaken to ensure a smooth journey.These may involve pre trip approvals,booking transportation and stayaccommodations and ensuring requiredtraveller documents are in place.

While the traveller has not officially left forthe trip yet, several risks are encountered inthis stage already. These risks could be ofvaried types, such as financial risks,employee safety risks, compliance risks andTMC related risks. Some of these risks areenumerated below.

2.1 Travel Specific Risks – Pre Trip

Lack of cost optimization while bookingtransport and stay accommodations

Last minute changes in tripnecessitating changes in reservations

Expenses related to visa applicationissues and delays

Fluctuating Forex rates Flight cancellations/delays

Missing required immunization Traveller health check up not conducted Emergency contact information not

updated

Employees booking flights andaccommodation out of policy throughalternate channels

Employees unfamiliar with travel policy Circumventing pre trip approvals for last

minute travel Visa approval delays

TMC not knowledgeable about visa processes and destination information

TMC systems not integrated with company systems causing delays

Travel bookings taking longer than expected

No travel alerts for destinations before departure

Financial Risks Safety Risks

Compliance Risks TMC Related Risks

Pre Trip Risks

Disclaimer: List of risks not exhaustive

23

Post departure, the propensity for travelrelated risks escalates considerably. Asseveral external factors begin to play a rolein how travel progresses, some risks arecontrollable and can be prevented, whilesome external risks are uncontrollable and

hence need to be mitigated. Several typesof risks are faced during the trip, namelyfinancial risks, TMC related risks, employeesafety risks and data security risks. Thefollowing list indicates some risks facedduring the trip.

2.2 Travel Specific Risks – During Trip

Delays at arrival

Employee refused entry into destination country

Employee unaware of incidents at travel destination

No travel alerts for travel destination

Employee unaware of emergency assistance procedures/helpline

Unforeseen expenses/emergency Forex requirements

Hotel/cab company not honoring bookings

TMC unable to handle/assist in employee security concerns

Employee health crisis/death

TMC unreachable/does not have 24/7 helpline

Longer stay than expected

Employee losing belongings/passport/company documents

Employee cannot be tracked/disappeared

F S DTFinancial Risk Employee Safety Risk

TMC Related Risk

Data Security Risk

D

S

T

T

S

F

F

T

S

T

F

S

F

D

S

F

F

S

T

T

T

T

T

Disclaimer: List of risks not exhaustive

F

24

2.2 Travel Specific Risks – During Trip – Erratic Risks

Sudden collapse of airlines or vendors, similar to the Jet Airways collapse, is an uncontrollable risk that can greatly affect travel plans and bookings. They pose significant financial and operational risks.

Airline/Vendor Collapse

Political unrest, strikes and other forms of protests, like the Hong Kong and Delhi protests, can result in violence, posing a threat to employees safety and requiring the company to fulfil its Duty of Care responsibilities.

Geopolitical Crisis and Domestic Unrest

Being in the midst of a terrorist attack or a hijacked plane can cause severe emotional and mental trauma, along with a threat to the employee’s safety and security.

Terrorist Attack

Environmental disasters, such as the Tsunami of 2006, Australia bushfires, California wildfires, can

trigger evacuations and present a severe threat to employee’s safety and lives along with financial

risks.

Natural Disaster

Outbreak of infectious diseases such as Corona virus, Ebola, Malaria, yellow fever, etc. in certain

geographies affect travel plans and travel to those locations can put certain employees at severe

health risk

Infectious Diseases

25

Once the traveller has returned to their localoffice post their business trip, the riskssubside to encompass mainly financial andcompliance related risks. The main activitiesremaining include expense reporting andcompliance related matters.The most common post trip activity thatmust be undertaken by employees isexpense reporting. Expenses incurredduring the trip must be consolidated andfiled in order to maintain records as well asobtain reimbursements. A key risk faced atthis stage is a mismatch between theexpenses filed and the expected expensesfor the trip.In terms of compliance, employees often failto file their expenses in time, thus creatingcompliance issues as well as financial risks.When expenses are not filed within thestipulated time period, delayed expensereporting can create financial budgetingdiscrepancies and disturb accountingprocesses.

2.3 Travel Specific Risks – Post Trip

79% of Indian business travellers find expense reporting to

be time consuming

72% claim the expense reporting process is overly

complicated

92% require approval prior to submitting expense reports

Figure 11: Factors Contributing to Delayed Expense Reporting

Source: American Express Global Business Travel, 2018

Voice of the Industry

Pre Trip During Trip Post Trip

“Preference is given to certain airlines with zero cancellation

fees for corporates”

- Multinational consumer electronics firm

“Travel to destinations with travel advisories is rare and only allowed in exceptional cases when unavoidable”

- UK Based Financial Services Firm

“Reimbursement requests beyond a month are not

entertained”

- Leading chemical holding company

“Compliance issues are minimized as travel bookings are handled by internal travel

department”

- Large Renewable Energy Company

“There is a dedicated intranet page for travel related

policies, alerts and keynotes to keep employees informed”

- International IT Security Company

“Travel expenses are only reimbursed as per travel policy and those above

allowed limits are not paid”

- Indian e-commerce payments company

26

Business Traveller Journey

During Trip

Pre Trip

Post Trip

Steps Involved Key Risks Stakeholders

Financial Risk

Employee Safety Risk

Compliance Risk

TMC Related Risk

Financial Risk

Employee Safety Risk

TMC Related Risk

Data Security Risk

Erratic Risk

Financial Risk

Compliance Risk

Planning transport and lodging

Booking through preferred service providers

Visa and passport management

Immunizations

Traveller

Business Travel Department

Travel Management Company (TMC)

Travel Service Provider

CFO

CIO

Ensuring timely transportation

Emergency response systems

Changes in travel plans

Monitoring employee safety

Traveller

Business Travel Department

Travel Management Company (TMC)

Travel Service Provider

Expense Reporting

Feedback

Consolidation of trip details

Traveller

Business Travel Department

CFO

27

Factors Affecting Business Travel Risks (1/2)

Domestic vs

International

Travel

Domestic Travel International Travel

• More risks due to foreign laws, regulations and norms

• Additional Visa and immigration risks

• Requires international organisation/TMC coverage and insurance

• Higher degree of familiarity

• Risks associated with rail/road travel domestically

• Fewer cultural risks

Sector

Specific

Low Risk Sectors High Risk Sectors• Sectors which deal with

risk prone work environment

• Sectors that travel to politically unstable or remote locations

• Sectors that deal with hazardous materials and/or heavy machinery

• Sectors with less or infrequent travel

• Sectors with travel to well established business destinations

Firm Size

Small and Medium Enterprises

• More varied travel needs, with more travellers and larger variety of destinations

• Able to get better corporate deals due to volume of bookings

• Lesser volume of travel• May get neglected by

TMCs• Underdeveloped risk

processes

Large Firms

28

Factors Affecting Business Travel Risks (2/2)

Location of

Travel

Type of

Traveller

Travel

Length

First Time Traveller Veteran Traveller

Frequently Visited Locations Unfrequented Locations

Short Visit Expatriate Assignment

• More familiar with travel processes, reducing risk of violation due to lack of knowledge

• Faster booking, reducing time spent away from business related activities

• Low familiarity with travel processes

• Lesser exposure to business travel norms, resulting in heightened risks

• Unfamiliarity with business travel can affect employee productivity

• Higher risk proposition due to unfamiliarity with local laws and customs, visa requirements, etc.

• Time consuming process to understand local landscape

• Established travel relationships with vendors

• Better understanding of location based security concerns

• Higher risk as duration is longer

• Needs consistent monitoring to ensure compliance

• Additional strain of living away from home for a long period of time

• Lower risk due to shorter trip

• Multiple short trips close together may affect employee productivity

29

Business Travel policies are formulated tostreamline and regulate travel processes ina company. While these are createdkeeping employee safety and comfort inmind, these policies are often violated bythe same employees. The reasons forviolating these policies are rarely maliciousbut rather in attempt to customize and easetheir travel experience or simply from a lackof knowledge of these policies.Improperly constructed policies can prove tobe hinderances rather than facilitators whenthey incorporate laborious process andextensive approval requirements. Thesemotivate employees to work around thepolicies for their convenience. Working withemployees to achieve an efficient processand increasing employee awareness oftravel policies can help reduce travel policyviolations and increase compliance.

Policy Violation Risk

Picture

93%

94% 92%

88%96%

Figure 12: Common Reasons why Indian Employees Violate Company Travel Policies

To be closer to

the meeting / business

event venue

To minimize

any negative impact on health and well being

To earn loyalty

points or rewards /

save company money

To fly with another

airline not under

current policy

To stay in the same

hotel as the client / in a

safer location

Source: American Express Global Business Travel, 2018

66%Indian employees admit to breaking company travel policy 97%

Indian employees prefer incentives to increase policy compliance

Source: American Express Global Business Travel, 2018

Impact of Business Travel Risks

31

Impact of Business Travel RisksThe risks of business travel in India havevarying degrees of impact on anorganisation. Some risks could hinderemployee productivity such as flight delaysor lengthy booking processes, while somecould have legal repercussions such as visafraud or data security leakages.From an organization's perspective,business travel risk can lead to lowprofitability, when cost of travel exceedsbudget, or a blemished reputation. Sincethe ‘duty of care’ lies on the employer, anytraveller specific risk must be addressed bythe firm as well.Business travel risk can impact anorganisation in more than one way as well.The resulting implications from these riskscan be broadly characterized into fourcategories;Figure 13: Impact of Business TravelRisks

Profitability Travel and Entertainment is the secondlargest expense head for most corporates.As per a global study by Harvard BusinessReview, companies that spend heavily onbusiness travel could see profits rise by asmuch as 47%.Furthermore, companies with a strong travelculture – where top management considersbusiness travel as an investment rather thanan superfluous cost – are likely toexperience better business results thanthose with a weak travel culture. However, ifnot managed properly, certain elements canadversely affect the probability of acompany.Since companies are driven by a profitmotive, it is important to ensure that risk thatmay arise do not affect the profitability thecompany. Whether travel management isoutsourced or handled in house, practicesshould be in place to ensure prevention andmitigation of risks.Contracts with travel service providersshould have clearly defined terms to avoidfinancial risks. Additionally, last minutetravel emerges as the key contributor tocosts.Sometimes, there are unforeseencircumstances such as the collapse of anairline such as Jet Airways or a travelmanagement company such as ThomasCook Group PLC that can put travellingemployees and business operations at risk.This also has a waterfall effect on othertravel service providers, leading to inflatedprices. Thus, costs incurred for businesstravel is likely to be higher in times of suchevents

Profitability Productivity

Reputational Legal

32

Budgeting and Policy

Compliance

Fare Monitoring

Direct Deals with Hotels, Airlines

etc.

TMC Contract Negotiation Risk

Figure 14: Risks Affecting Profitability

• KPIs not defined • Complacency of TMCs• Lack of relevant knowledge

leading to longer processes, missing out on value added services

• Adherence to SLA by TMCs• Quarterly performance

reviews with TMCs• Selection of TMC on factors

other than price such as services offered, technological capabilities

• Lack of company’s buying power or to negotiate deals

• Lack of company’s industry knowledge to extract best offerings

• Leverage TMC industry expertise

• Direct deals between company and vendors such as fleet operators

• High fares/rate on the date of travel

• Unavailability of flights/hotels as per requirement

• Fare monitoring post booking travel by travel department/TMC

• Well defined timeline for booking e.g. 5-7 days before domestic travel, etc.to be followed by employees

• Monthly MIS reports by TMCs to be reviewed by travel department/CxOs

• Costs exceeding budget due to unexpected extensions of trips, unavailability of hotels, etc.

• Employees not complying to policy or overspending

• Foreign Exchange fluctuations

• Flexible travel policy as per employee needs

• Onboarding sharing economy services to increase cost effective options

• Relevant polices on forex conversions or issuance of forex cards

Risk Mitigation Techniques

33

Figure 15: Impact of Airline Collapse on Business Travel

Steps taken by Corporates/TMCs

Impact on Business TravelFall of Jet Airways

30-40% hike in airline prices for a 4-6 month period

Cancellation of flights without notice and partial refund

• Alternate airlines were approached to ensure travelling employees reach their destination

• Increased fare monitoring to ensure best price of air tickets

Voice of the Industry

15,000 employees, including 1,500 pilots and 4,000 cabin crew, wide network of flights

Over 60,000 people affected

Insolvent

“Last minute travel is common, leading to high fare costs”

“We have a corporate tie up with Uber, which charges from point A to point B, unlike other cab vendors. This helps us reduce costs.”

“Sometimes, there are global events taking place, so hotels get booked up and flights are expensive. Additional approval is required in such cases.”

Source: Primary Interactions, Times of India

“We implemented a self-booking tool and adoption is good. However, SBT lacks a personal touch and certain remarks on employee preferences usually get missed. ”

Leading Telecommunications Firm

Leading Venture Capital Firm Leading Advisory Firm

Multiple sources

Other Airlines that Collapsed (2012-2019)

34

ProductivityBusiness travel is considered a covetedperk amongst today’s millennial dominatedworkforce. While employees are motivatedto travel, the risks that arise during travelcan have an detrimental impact on businessobjectives and employee productivity.

Note: Response when business travellers wereasked to define a ‘very important reason forbusiness travel. This list is not exhaustive.

As business travel covers a variety ofactivities imperative for a company’s growth,employees must be in their best condition todeliver high quality work. Thus, everyaspect of the business traveller’s journeyshould be handled in an efficient andemployee friendly manner.Certain risks such as delays andcancellations, inconvenient hotel locations,lengthy booking processes, etc. can disturbbusiness activities. These issues are time-consuming and distract employees fromtheir intended purpose during or before atrip.While business travel is integral part of acompany’s operations, it has the potential toput employees at risk for stress-relatedissues. Back to back meetings, packedschedules or last minute travel addsanother level of stress to employees, on topof their existing workload. Hence, poorlyplanned travel or uncertainties during travelcan lead to employee burnout.While there are many perceived employeebenefits in business travel, organisationsshould be aware of risks that can lead toemployee burnout or hinder businessactivities and take precautions accordingly.

Figure 16: Reasons for Business Travel

Foster existing business relationships

Establish new business relationships

Meet with co-workers in other offices

Attend conferences/events

Gather a team in one place

Close a deal

~47%

~39%

~38%

~36%

~30%

~28%

Source; Skift, Trip Actions 2020 Business Travel Survey

35

Lengthy travel booking process

Issues with Travel Service Providers

• Delays/Cancellations by airlines

• Ground transport issues; cabs cancelling last minute or unavailability

Subpar hotel locations

• Location far from meeting destination

• Lack for facilities in hotel such as wi-fi

Lack of knowledge on

destination• Language

Barriers• Unfamiliar

destinations and potential unrest

• Cultural differences

Factors that Disturb Business Activities

Last minute travel

• Less time to prepare for travel

• Rushed booking process

Absence of bleisure

• Short trips that leave no scope for bleisure

• Rigid travel policies

Inconvenient flight times

• Early morning or late night flights with no buffer time

• Too many stop overs

• Long flight durations

• Complicated visa formalities

• High turnaround time for tickets

• Multiple approvals required

Factors Leading to Employee Burnout

~40% of calls to an international travel risk management company are stress related20

“Due to mis-information on required vaccinations, our business trip to Ethiopia kept getting postponed, leading to idle days before the trip”

“Our work place was in such bad condition that I had to travel back to the hotel for basic facilities such as restroom. This wasted a significant amount of time and energy.”

Frequent travels can result in an estimated $3 million a year in lost productivity21

Note: Bleisure refers to extension of business trips for personal reasons by employees

Hectic schedules

• High number of meetings or Back to back meetings

• Multiple destinations in a single trip

Source: 20; ISOS 21; ‘The Hidden costs of business travel’, Priority Pass, 2018

Employee, a leading advisory firm

Employee, a leading consultancy firm

36

As travel management evolves, these riskfactors are slowly being addressed. Withcollaborative efforts by companies, TMCsand travel service providers, varioustechnologies, sharing economy services anduse of online aggregators, are becomingcommon place. However, there are manymore steps that can be taken to ensure thattravel related problems do not hamperemployee productivity.

Smooth Booking Process

Value Added Services

Bleisure

Convenient Options

• Implement technologies such as Self-booking Tool for simplified booking, in built approval systems and 24/7 assistance

• Allow Mobile access/ applications to all travel related information for on the go decision making

• Leverage TMC expertise for complex travel requirement such as visas and quick turnaround time

• Negotiate for value added services such as Premium lounge access, extra leg room, customised meals, loyalty points

• Customised travel plans, airport drop and pick up to boost employee productivity etc.

• Personalized assistance from TMCs for travel booking

• Encourage extension of business trips for leisure activities

• Allow access to facilities such as gym, swimming pool, meals, etc. to allow employees to rejuvenate their minds & bodies

• Avoid late night/early flight bookings and keep some buffer time to budget for delays

• Explore nontraditional stay options to ensure proximity to meeting locations and employee satisfaction

• Alternate options should be readily available in case of cancellations

Figure 17: Steps to Reduce Risks to Employee Productivity

37

ReputationalBusiness travel can have a two-fold impacton a company’s reputation. When anemployee travels, they act as arepresentative for the company. Thus, theiractions can have a reputational impact onthe company. When dealing withorganisations in other countries, culturaldifferences must also be considered toavoid miscommunication and otherincidents. Additionally, an employee’sperception of their company can alsochange if their travel experience is notsatisfactory. When employees travel, thereis a burden of responsibility on theorganisation to ensure safety.Duty of CareAn employer has a moral and legalobligation to ensure the wellbeing of theiremployee at all times. This responsibility istermed as ‘duty of care’. Given the highlevels of global political uncertainty andclimate change, ‘duty of care’ plays animportant role in business travel.From the moment when the need for abusiness trip rises, it is the employer’s dutyto ensure that the business destination iswell suited for employee travel. Earlier, thiswas mostly relevant for companies in themining or oil and gas sectors. However,developing economies have emerged aspopular destinations for business travel.This has led to an increased emphasis on‘duty of care’ across the globe. In India,approximately 90% of employees feel thatbusiness travel impacts their jobsatisfaction.14 Hence, travel managers musttake all necessary precautions to ensureemployee safety at all times.

Figure 18: Steps to be Taken to Ensure ‘Duty of Care’

Assess Destination• Assess business destination for political

stability, natural disasters, and friendliness to foreigners

Prepare Employees• Prepare travel brief for employees• Ensure vaccinations and other health

requirements

Contingency Plans• Tie-ups with neutral international

organisations for ease of extraction in case of emergencies

• 24/7 point of contact in case assistance is needed

Source; 14 GBTA

~44% >66%employees expect their

employers to locate them in an emergency

overseas14

expected to be contact within two

hours of an adverse event14

38

• An employee traveling to an African country did not wait the required incubation period after getting Yellow Fever vaccination

• As per WHO guidelines, in the absence of a vaccination certificate, the individual is to be detained in quarantine for up to 6 days of departing from a location with risk of yellow fever transmission

• Employee was quarantined, leading to emotional distress and frustration

• Additionally, there was a halt in business activities for some days

• Multiple travelling employees were in Sri Lanka when a terrorist bombing occurred

• TMC took proactive measures to contact employees and ensure their safety

• Although employees were safe, TMC maintained constant contact with them till they reached their origin point

• TMC was prepared to evacuate employees if needed

• 80% of fortune 500 companies have tied up with ISOS to ensure employee safety

• Large IT corporation had to call emergency relief firm International SOS to pull out its executives from flood affected parts of Andhra Pradesh.

• Recused 130 Indian employees of a steel manufacturing firm from Ebola outbreak in Liberia

• As a neutral international organisation, ISOS can assist in emergencies with ease

ISOS Benefits

Implications for TMCsIn case of natural disasters, terror attack, and other unexpected situations, corporatesmay require additional support to protect its employees. At the same time, employeesshould be informed about their travel destination through frequent travel alerts andadvisories etc.To support corporates, TMCs can utilise their industry expertise and knowledge toadvise corporates on destinations, etc., leverage global network to assist in emergencycases and advise on use of technologies to mitigate these risks.

Source: Primary interactions with a leading travel management company

Source: Primary interactions with a leading advisory firm

Source: Times of India

Terrorist Bombings in

Sri Lanka

Vaccination Oversight in

Africa

Figure 19: Examples of Situations under ‘Duty of Care’

39

Cultural DifferencesFor businesses to flourish in an increasingly global world, there is a need to understandand adapt to cultural differences ranging from language barriers to work place norms. Toestablish business in a new region or country, an organisation must adhere to the existingcultural norms for success. Therefore, travel managers can work to develop the skill ofcultural intelligence and draft protocols accordingly. As organisations and travelers becomeculturally aware and cognizant to the particular customs of the places they visit, positiveand long lasting business relationships are more likely to follow.

Figure 20: Risks arising due to Cultural Differences

• Language barriers can lead to miscommunication. Certain words have different meanings in different languages, leading to confusion

• Some languages have formal and informal usage which should be adhered to in a business setting

Mis-communication

• Western countries such as USA tend to be rule centric whereas Asian countries are relationship centric in their businesses and prefer to build trust between parties first.

Mismatched Working Styles

Hierarchical Mishaps

• Certain countries have a more relaxed managerial style which may lead to unproductive work hours when applied in a different country.

Voice of the Industry

“We are an employee centric company, with safety as our priority.”

“We have tied up with iJet for travel advisories and emergency assistance for employee safety”

- Global Telecommunications firm

“During the Chennai floods, our TMC leveraged their industry connections to get our employees back ”

- Multi-national Advisory Firm

- Large Industrial Gas Company

Source: Harvard Business Review, KPMG Analysis

40

LegalThere are times when business travel canresult in legal complications. These issuesare most commonly found in contractnegotiations, visa formalities, data security,etc.Contract Negotiation RisksCorporates generally choose their travelpartners after careful consideration ofmultiple factors such as price, marketpresence, services offered, etc.Figure 21: Contract Negotiation Risks

These risk can be nullified through carefullydrafted contracts that have clearly definedKPIs and strict SLAs for TMCs and othertravel service providers. Other steps suchas monthly or quarterly reviews with TMCsto monitor performance, regular paymentsto vendors, etc. must also be undertaken.Travel managers of a company must alsobe aware of industry best practices toensure that Travel Service Providers areoffering relevant services at competitiveprices.

Complicated Travel ProcessesAs companies expand their businesshorizon to new geographies, visa issuesmay arise. As it is illegal to be in a countrywithout the required visa, these nuances invisa and immigration processes must beunderstood before travel to avoid duplicationof work or difficulties for employees duringtravel.Information such as cash foreign exchangelimit, required health checks and paperwork,maximum duration of stay etc. should beclearly communicated to ensure smoothtravel for employees. In cases of visa fraudor abuse of immigration process, theresulting fines can be as high as $34 milliondollars.15

Figure 22: Example of Visa Fraud

KLong Term Agreements

• Vendor lock in may lead to complacency, outdated policies and technologies, inflated rates

Poorly Defined SLAs

• Unclear jobs roles and responsibilities leading to duplication of work or negligence

• Undefined metrics to measure TSP performance

Additional Clauses

• Hidden clauses such as automatic roll over, extra fees, etc.

Repercussions

Thorough investigation by relevant USA authorities*

Fined 2.5 million dollars for civil and criminal allegations

H1B and B1 Visa FraudExploited complicated visa processes to boost profits Paid employees working in

the US India Salaries

400 potential B1 visa violations

And 300 illegal visa bond contracts

An Indian Data Analytics Consulting Firm

Headquartered Chicago, USA with main delivery

center in Bangalore, India

Operations in China, Singapore, USA, UK, UAE,

Australia, Canada, Germany, Japan

Source: Entracker*USA Immigrations and Customs Enforcement (ICE), Homeland Security Investigations (HSI) and the U.S. Department of State’s Diplomatic Security Service (DSS)

Source: 15. ICE.gov

41

Data SecurityIn an increasing data driven world, there arenow laws and standards in place to ensureimportant information is protected.Comprehensive data protection laws suchas the EU General Data ProtectionRegulation (GDPR) and the India PersonalData Protection bill are needed to safeguardthe interests of all stakeholders involved inany online transaction. Since these lawsare aimed at establishing a regulatoryframework to safeguard businesses andconsumers alike, they are expected to havea ripple effect on the business travelindustry. As corporates are accountable forthe use of their employee data, datamanagement systems that adhere to theselaws are essential.

Employee Related RisksIt is the company’s legal obligation to ensureemployee safety and wellbeing whentravelling. If proper safety protocols andstandards are not met, then employeeshave the right to claim compensation fromthe company for their troubles.On the other hand, a certain standard ofbehavior must be maintained by employeesat all times. A workplace is no longerrestricted to a physical office. Hence, whenan employee travels for business, theyrepresent the company and the company isliable for their actions. Any misbehaviorwhile on a business trip can lead to legalconsequences for an organisation.Thus, employers need to be proactive indefining parameters and communicatingexpected employee behavior while they areout representing the organization

• Misdemeanours: Employee misbehaviour such as drunk and disorderly behaviour

• Bribery: Excessive entertainment through lavish dinners, extravagant gifts, ostentatious private events

• Sexual Harassment: Making other employees uncomfortable as through inappropriate actions or statements

• Social Media Usage: Posting on social media during travel can lead to commercial espionage or risk of burglary

Employee Related Risks with Legal Implications

Source: SAP Survey 2019, KPMG Analysis

Risk Management through

Stakeholders

43

Traveller

Travel Managers

Key Stakeholders in Travel RiskMitigationTo keep these risks under control andfacilitate continuous flow of businessoperations, each stakeholder has a role toplay.Decision makers such as the CFO or theCIO play an important role in the travel riskmanagement ecosystem. As topmanagement, their decisions and actionscan define the ‘culture’ of the company.Travel Departments and TMCs are thedriving force for travel risk management.From drafting travel polices to post tripformalities, these players are involved atevery point.On the other hand, stakeholders such asTSPs and Travellers play an incrementalpart in travel risk management. A traveller’srole can be confined to policy complianceand code of conduct. TSPs such as hotels,airlines, cab vendors etc. are critical forbusiness travel but play a limited role forrisk mitigation.

Business Travel Stakeholder Ecosystem

TSPs and Others

CFO

CIO

TMCs

44

Nowadays, four in ten CFOs spend time onstrategy, transformations, or other non-finance-specific areas, with rising focus onmanaging employee performance.16 Thus,the role of the CFO is now expanding toinclude more considerations for drivingbusiness growth, such as profitablebusiness travel.As business travel is major expense formost organisations, the CFO has asignificant role to play in this area. When itcomes to risk management, CFOs needs totake a pre-emptive approach, starting withselecting the right travel partners toensuring employees follow the respectivepolicies.Figure 23: Steps for Risk Mitigation

Selecting a Travel ManagementCompanyIn some cases, the CFO is a key decisionmaker for selecting a TMC. Although pricequoted is a key consideration, it is no longerthe only parameter considered for picking aTMC.CFOs need to be made aware of the needsof their organisation and choose a TMCaccordingly, even if it leads to higher costs.For example, a company with operations invarious countries would prefer their TMC to

have a global presence to facilitate smoothoperations. Through this, employees wouldhave a local point of contact, in case ofemergencies.Understanding the Consequences ofBudgeting RestraintsImposing budget constraints on businesstravel is a common step to control spends.However, this could have seriousramifications such as employee burnout,inconvenient hotel/flight bookings andmissed business opportunities. Thus, CFOsmust take informed decisions regarding this,after careful and detailed analysis of travelspends.Figure 24: Common Budget Constraintsand their Potential Outcomes

Role of the CFO in Risk Management

Selecting a Travel

Management Company

Understanding the

Consequences of Budgeting Constraints

Empowering Travel

Managers

Focusing on Curbing

Employee Spending

Imposing Travel Freeze

• Missed business opportunities

• Halt in inter-regional business

Lower Budget for Business

Trips

• Inconvenient flight timings, long stop overs

• Substandard or poorly located hotel bookings

Restriction on Number of People Travelling

• Entire workload falls on few employees, leading to overburdening of employee and inefficiencies

Short Duration of

Trips

• Cramped schedules

• Meetings under time constraints

45

Empower Travel ManagersApproximately 27% of CFOs16 consider theirrelationship with the travel management tobe effective. However, travel managers orthe travel department of an organisationmust work closely with the CFO and thefinance team to develop and enforce cost-effective travel polices. For a mutuallybeneficial relationship, there is a need forregular meetings to discuss KPIs, expensemanagement metrics, industry trends,technological innovations and areas ofweakness and opportunity.Appropriate Decision Making AuthorityAppropriate decision making authority canbe given to travel managers, to removeunnecessary layers of approvals. Withdynamic pricing in travel, quick decisionmaking for ticket booking, etc. is highlycritical. This also leads to a faster and morecost effective booking process.Encourage Continuous InnovationsWith the CFO and CIO’s support to evaluatesuitable technologies, travel managers canbe encouraged to constantly upgrade thetravel processes and implement cost savingalternatives such as corporate tie-ups withonline cab aggregators, expense software,etc. As technology invades every aspect ofthe travel process, travel managers must beaware and open to these developments.Ensuring Travel Policy ComplianceAnother key consideration for the CFO is toensure policy compliance. When employeesbook out of policy, these spends are notrecorded in the proper channels and cancause budgeting issues. Thus, metricssuch as policy compliance rate, commonareas of compliance violation, etc. shouldbe evaluated to determine required changes

Focus on Curbing Employee SpendingApproximately one third of employee travelbudget is spent on over spending.17 Whenemployees are frustrated, they are morelikely to overspend. Most employees bookout of policy when travelling for reasonssuch as better hotel locations, preferredairlines, loyalty points, etc.Although these reasons may seemfrivolous, it is important for employees tofeel comfortable and well rested duringtravel to avoid burnout and other financialconcerns. Thus, with the CFO’s approval,incurring additional costs to ensurecomfortable and convenient trips foremployees can result in better ROI ofbusiness travel.Figure 25: Financial Implications ofEmployee Spending

Investing in value added services such asmeal preferences, extra leg room, premiumlounge access, etc. can go a long waytowards profitability.In most organisations, compliance cultureflows from the top. Since high levelexecutives have higher spend limits, theirextravagant spending may tempt employeesto overspend. Hence, senior executiveshould be considerate of spend limits. Thissupport from their colleagues wouldencourage larger policy compliance.

78%of travellers who indulged in Bleisure report that their work was more effective

4.2xmore profitable than companies that don’t have employee centric policies

33% Of travel budget is taken up by employee overspendingdue to dissatisfaction

Source: Harvard Business Review, CFONewsDaily, Locomote

Source: 16. ‘CFO’s guide to reducing team travel costs’, Locomote; 17. ‘How to manage overspending business travellers’, Locomote Harvard Business Review, CFONewsDaily, Locomote

46

“CFO is cautious about travel costs and encourages regular data analysis for balancing costs and employee satisfaction”- Major Technology Company

“We have the freedom to book tickets costing up to Rs 10,000 without requiring extra approval.” - Leading Investment Firm

“Monthly MIS reports from TMC are sent to top level executives to help us control costs.”- Indian Technology Firm

“Towards year end, CFO sends email communication to limit travel and use VC wherever possible. Additional approvals are needed for travel.” - Leading Property Management Firm

“CFO reviews the travel spends and focuses on big picture decisions while travel managers handle all the operations.”- Top engineering firm

“Sometimes, employees overspend while entertaining clients. We realized that there is no set limit for such cases and rectified the policies accordingly. “- Global Payment Solution Provider

Voice of the Industry

47

The key function of the CIO is to lead thedigital transformation of the organisation.Approximately 95% of organizations in arecent survey18 have undertaken digitaltransformation projects.With a millennial dominated and digitallyenabled workforce, use of technology intravel is becoming common place. Thus, asbusiness travel volumes grow, there is anexpected growth in demand for user-oriented processes, sharing economyservices, mobile applications, analytics, etc.While some companies are future-forwardand constantly improving their processesthough technology, some require anadditional push towards digital. Forexample; Self booking tools (SBT) gainedpopularity 3-4 years ago in the Indian travelindustry, however many firms are yet toinculcate SBT into their travel process orhave just started this year.Manual processes or lag in adoption ofavailable technologies can add unnecessary

risks to business travel.Thus, the CIO must take the initiative todrive the restructuring of current businesstravel processes with savvy use oftechnology to mitigate risks and ensureemployee productivity is not hampered.Figure 26: Role of CIO in Business Travel

Role of the CIO in Risk Management

Identify Relevant Technologies

• Identify relevant technologies and industry best practices to enhance travel management and manage risks

Ensure Compatibility with Company

• Ensure that suggested travel tools are compatible with company culture to increase adoption

• Assess compatibility with existing processes to facilitate integration

Implement Associated Data Security Measures

Lack of 24/7 availability in case of emergencies

No visibility to employee location

High turnaround time leading to high fares

Frustrated employees due to complex

processes Lack of convenient

options for transport etc.

Expenses not filled on time

High fares for last minute travel

Employee noncompliance and exploitation of policy

loopholes

High costs due to duplication of work

Data leakages

No visibility into travel spends

Oversight or steps being missed due to human

error

Figure 27: Risks of Outdated Technology in Business Travel Processes

List is not exhaustive

18. Economic Times

48

To safeguard against risks, there is abouquet of tools that a company can adoptlike self-booking tool, mobile, AI, etc. Thesetechnologies work together to pre-emptrisks such as dynamic fares, complicatedbooking process, delayed approvals, policynon-compliance, frequent rescheduling,employee safety. However, a recent surveyby SAP revealed that employees still believethat their organisations are late adopters oftechnology or have not introduced them yet.Figure 28: Current State of Technologyin Business Travel19

Figure 29: Prevalent TechnologicalTravel Tools and Trends

To understand and address the gaps in acompany’s travel process, the CIO shouldengage in frequent conversation with travelmanagers and TMCs. Since travelmanagers are directly in charge of thetravel, they are likely have better insight towhat is required. This would avoid overinvestment in technology. For example;companies with majority domestic travelmay not need a self-booking tool forinternational travel.At times, a company may be a late adopterof technology, leading to pressure frommarket forces to revamp their existing travelprocesses. Some TMCs play an active rolein such cases by proving the required toolsor leveraging their industry expertise for thecompany. Discussions with the CFO wouldalso be needed to determine the level ofinvestment required.After careful consideration of all availabletechnologies, the CIO must approve theimplementation of the chosen tool.Technological solutions are not ‘one size fitsall’. The needs of an organisation vary andhence, different tools would be fitting fordifferent organisations. It is the CIOs duty toensure that suggested travel tools arecompatible with company culture toincrease adoption within the organisations.For successful implementation and usage oftools, certain measures should be taken.

77%agree that their employers are behind the curve when it comes to technology to manage travel

67% have experienced gaps in technology adoption

66%feel a need for automated safety alerts about their destinations

Self-booking Tools

For pre-approved automated booking

Artificial Intelligence

For answering queries, chat bots, etc.

Business Profiles

For integration with platforms such as Uber,

Ola, OTAs, Airbnb

Travel Data Analytics

For insight into spends, patterns, trends, etc.

Mobile Applications

For on the go bookings, expenses, queries, etc.

Automated Alerts

For timely dissemination of safety alerts

Blockchain

For secure record keeping and payments

Cloud ComputingFor scalable and

accessible infrastructure

“We tried SBT but employees thought it was time- consuming and reverted to using email.”

“We recently implemented SBT and traction is good, last minute travel is easier”

Head Admin, a leading audit firm

Travel head, a renewable energy firm

Source: 19. Moneycontrol.com, Primary interactions, KPMG Analysis

49

Voice of the Industry

Figure 30: Steps to be taken forTechnological Adoption

Such actions can help employees realizethe benefits of these tools. Additionally,promotion of tool should flow from the top,with senior level executives encouraging theuse of tools amongst employees.

It is also critical to assess compatibility withexisting processes to facilitate integration.Due to complex IT policies of a firm, it cantake time to integrate a new tool, withmultiple layers of approvals and testingrequired. Further, cyber security and dataprivacy concerns are a major roadblock foronboarding new technologies.

Adherence to General Data ProtectionRegulation (GDPR) and Personal DataProtection Bill is also critical. Thus, with theCIO’s support, this integration can happenin a smooth and timely manner.

“We rely on our TMC for advice on technological tools as they

have industry expertise.”

“Once the CIO has signed off, we handle

the rest”

“It took a while to work out the IT issues before implementing the SBT. We were the last to get SBT amongst our competitors.

Our TMC helped us catch up to our peers.”

“Through business profiles on existing platforms such as uber, Ola, Airbnb. we

have direct visibility into employee spends and there is ease of integration.”

agree that risk of cyber-attacks thwart the progress of digital transformation projects in their organisations

have encountered a security incident

Frequent communication about tool via email, etc. before and after

implementation

Online trainings to increase familiarity with tool

Step by step guide on how to use tool

Physical kiosk/helpline for queries on the tool

61% 46% Source: Economic Times

50

involves steps that can be taken at variousstages in the business traveller journey (pretrip, during trip and post trip) to ensure thatany foreseeable risks are minimized.These are followed by regular reviews andimprovement analyses for ensuring anygaps discovered are addressed and futurerisks are minimized.The last two activities are often outsourcedto TMCs or performed in conjunction withthe appointed TMC to capitalize on theirexpertise on industry leading best practices.The degree of delegation can differ fromcompany to company based on complexityof their needs, travel frequency, size ofoperations, etc.

The travel department is the central point ofcontact for all travel related matters. It playsan essential role in ensuring employeetravel is handled in a streamlined andefficient manner, with minimal complicationsand risks. From designing the travel policy,to handling travel bookings, interfacing withTMCs, to ensuring cost and time effectivetravel arrangements, the travel departmentis involved every step of the way.While it is not possible to eliminate all risks,the travel department can take measures tosignificantly reduce preventable risks anddevelop procedures to effectively handleunforeseeable risks.There are five key activities that should beundertaken by the travel department to aidin reducing risks faced with business travel.First and foremost, careful formation of thetravel policy plays an important role in riskprevention and mitigation. Thus, ensuringrisk management fundamentals areintegrated into the travel policy can beextremely beneficial.Second, the travel department managestraveller data security by moderating datasharing policies and conducting regular dataprivacy trainings for employees.Third, it also coordinates and interfaces withthe TMC to ensure smooth operations. Thiscould involve ensuring that the appropriateprocess flow is followed, IT systems areintegrated with the TMC’s systems andthere is minimum miscommunication.Several risks associated with outsourcingservices to a third party can be mitigated inthis manner.Fourth, there are travel managementactivities which can be adopted to shrink therisks associated with business travel. This

Role of the Travel Department in Risk Management

Travel Department

Often outsourced to a Travel Management

Company (TMC) depending on scope and requirements

Travel Policy Formation

Data Security

TMC Coordination

Travel Management Activities

Review and Improvement Analyses

Figure 31: Role of the Travel Department in Risk Management

51

Travel Policy Formation and ReviewA key function of the travel department isformation of a robust travel policy. Thetravel department (handled by theadministration in smaller companies),undertake this responsibility in conjunctionwith the CFO, CIO and other senior leaders.It is important that the policy is created toreflect the organization needs, travellerneeds and address potential risk areas. Forexample, there must be a balance betweencost minimization and ensuring safetyprovisions. These priorities will contribute topreventing and managing travel related risks

Regular review of the travel policy throughfeedback and compliance data alongsidefinancial metrics can ensure the policy is up-to-date and optimised for risk management.A well crafted travel policy would include sixelements – well defined systems,procedures and timelines, automatedcompliance monitoring, clear channels ofcommunication, emergency responsesystems, traveller education and trainingand regular review and policy updates.A travel policy with these elements would bewell equipped to handle both common travelrisks as well as emergencies.

Well Defined Systems,

Procedures and Timelines

Automated Compliance Monitoring

Clear Channels of

Communication

Emergency Response Systems

Traveller Education

and Training

Regular Review and Policy Updates

Strong emergencyresponse systems canprotect againstunforeseeable risks byproviding clearprocedures to follow forassistance in variousuncontrollable situations

Several risks can bemitigated by increasingtraveller awareness oftravel policies andprocedures, facilitatedby periodic trainings,online or offline, toensure compliance

Regular policy reviewsupported by travellerfeedback and dataanalysis can revealimprovement areas forfurther strengtheningthe travel policy andreducing potential risks

Clarity regarding who tocontact at various pointsin the travel journey andduring times of distresscan aid in preventingrisks and delays thatarise from employee’slack of awareness

Automated systems withsequential approvalprocesses, usingleading technologysolutions can helpimprove compliance andreduce employee policyviolations

Elements of a Robust Travel Policy

Creation of well definedsystems and processesalong with cleartimelines can mitigateseveral risks before theyoccur and protect boththe employer and theemployees

52

Data SecurityWith increasing technological adoption, thethreat of data vulnerability has expandedmanifold. This has led to prioritisation ofdata security, with emergence of regulationssuch as General Data Protection Regulation(GDPR). While data security policies areusually driven by the CIO, it is the traveldepartment’s responsibility to ensure theirenforcement and employee awareness.Travel departments are responsible formoderating the amount and type of travellerdata shared with external agencies likeTMCs and Travel Service Providers. Datasharing can be limited to authorised entitiesand only when absolutely required to reducedata security risks. Further, it is prudent tofortify data storage systems to prevent dataleakage and regularly purge irrelevant data.Beyond data management, the traveldepartment must conduct regular trainings,online or offline, to educate employees ondata security risks and means of mitigation.This practice will encourage employees tobe vigilant against data theft.

Theft of laptop or mobile device/other personal devices used for business purposes

Disallow use of personal devices for business purposes, encrypt or password protect highly sensitive data and regularly backup data to protect against loss by theft

Using public PCs/personal devices with weak security for business purposes, leaving sensitive information unprotected

Discourage use of public Wi-Fi, Public PCs and personal devices for security purposes. Provide secure connections through approved data cards and VPN connections

Revealing confidential information by location check in/uploading pictures on social media accounts

Educate employees on data protection policies to create awareness of methods of accidental data leakage through social media platforms

Disable Bluetooth

Connectivity

Use secure VPN when

working outside of

office

Lock devices when not in

use

Use encrypted USBs and

laptop privacy screen guards

Limit location sharing when

travelling

Use two factor authentication for enhanced

security

Avoid using public and personal

computers for official work

Regularly update

Operating System

Disclaimer: List not exhaustive

Figure 33: Tips for Enhanced Data Security while Travelling for Business

Figure 32: Common Data Security Risks while Travelling and Associated

Preventative Measures

53

TMC CoordinationWhen the travel department outsourcessome of its activities to a TMC, it takes onthe added responsibility of ensuringcoordinated efforts with the TMC for smoothoperations.This involves several duties such as:

Meticulous undertaking of coordinationactivities can reduce several risks thatemerge from lack of communication.Finally, the last two travel department dutiesof travel management activities as well asreview and improvement analyses are oftenoutsourced to a TMC to varying degreesand thus explored under the role of a TMC.

“TMC tie ups with hotels in frequently travelled cities allow us corporate rates and flexible

payment policies”

- IT services management firm

“There is high policy compliance as the travel

policy is communicated to all employees”

- Large Telecommunications Company

“Miscommunication between TMC and travel department

on travel updates has caused complications in the past”

- Venture Capital Firm

“We conduct quarterly review meetings with the travel department, TMC and

Business Heads to identify areas of improvement”

- Leading electronics manufacturing company

“We work with a combination of TMCs, internal team and travel service providers to

ensure cost efficiency”

- International Private Equity Firm

Voice of the Industry

Coordinating with TMC Implant in the office

Facilitate integration of TMC and company IT systems

Monitoring secure data sharing with the TMC

Ensuring absence of areas of duplication of work

Interfacing with TMC regarding MIS and last minute changes in bookings

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Companies outsource travel activities toTMCs for various reasons ranging fromexclusive corporate deals and value addedservices to large demand for a diverse setof travel needs which are better handled byan external specialist.Some companies hire partial services fromTMCs depending on requirements andpreviously established relationships withvendors. Some companies also hire multipleTMCs to ensure the best corporate rates.

Largely, a TMC can offer support in threeareas to assist in risk management –organizational support, travel managementactivities and review and improvementanalyses.Organizational SupportBeyond travel management, TMCs haveadditional responsibilities of ensuring aholistic experience for their clients. SeveralTMC related risks can be managed by clearexpectation setting with the TMC.

Role of the TMC in Risk Management

Lack of communication and business understanding

Potential TMC AssistanceRisk Areas

Process based confusion leading to under delivering of services

Intermittent TMC performance reports

Lack of traveller expectation setting

Underdeveloped travel processes

Absence of SOPs for common travel issues

Lack of emergency support services

Allocation of a dedicated account manager with experience managing travel for the client’s industry

Establish a transparent process with clear workflows to ensure adherence to defined KPIs and SLAs

Regularly scheduled MIS reports with pre-defined KPIs for insight into TMC performance

Development of company and destination specific travel briefs and list of do’s and don’ts

Industry benchmarking for guidance on adoption of best practices

Draw on aggregate knowledge of historical traveller incident data to build SOPs for common travel issues

Utilisation of technology based tools such as AI chatbots, 24/7 helplines and apps to provide emergency support services

Organizational Support in Risk Management

Disclaimer: List of risks not exhaustive

55

Travel Management ActivitiesTravel management should be an end toend process, going beyond simply assistingwith travel bookings. By ensuring that thecompany and the traveller is supported inevery phase of the traveller journey, theTMC can aid in reducing several travelrelated risks. This extends to all threephases of pre trip, during trip and post trip.I. Pre TripThe pre trip period is a crucial time to takepreventative measures to protect againstfuture risks that could arise during businesstravel. Holistic TMC support beyondbookings during this time can assist instrengthening preventative risk mitigationmeasures.TMCs can work in conjunction with thetravel department and the traveller toensure adequate preparation in terms of riskassessment, resources available as well asthe information provided to the traveller.

Travel Policy CommunicationAny employee undertaking businessrelated travel must be adequatelyfamiliarised with the travel policy so as toreduce the risk of policy violation. 53% ofIndian employees20 state that the morefamiliar they are with their policy, the morelikely they are to follow it.Employees who are unfamiliar withcompany travel policy pose a risk as theyare more likely to perform actions whichcan put the company at risk. These riskscan range from booking outside travelpolicy to employee behaviour on thebusiness trip which may have legalrepercussions for the company.Thus, regular and timely communicationof travel policies can protect againstseveral types of risks includingcompliance, communication, reputationaland even financial risks

Role of the TMC in Risk Management

Figure 34: Key Steps and Risks in Pre Trip Phase of Business Travel Journey

Travel Policy Communication

Updated Traveller Profile

Travel Risk Rating

Pre Trip Debrief

Planning and Booking

Source: 20. American Express Global Business Travel, 2018

56

Updated Traveller ProfilePrior to an employee embarking on abusiness related trip, the company maycreate and maintain a traveller profilewith essential details that could berequired during the travel process. Thisincludes emergency contacts, pre-existing health conditions, immunizationrecords, passport and visa informationand travel preferences.Updating traveller profiles regularly andensuring their accuracy can help protectagainst compliance risks as well asemployee health and safety risks.Additionally, it also avoids employeeshaving to repeatedly give out travelrelated details, which is a timeconsuming process and distracts fromcore business activities.

Pre Trip DebriefTravelling to new and unknowndestinations can act as a source ofstress for many employees, which cansubsequently affect their productivityand the outcome of the business trip.The pre-trip debrief can address riskconcerns such as emergency contactinformation for medical issues, visarelated issues, etc.It can also provide the traveller withinformation regarding the destinationand relevant laws, currency information,telecommunication, and other culturalnorms to ensure the trip goes smoothly.Providing the traveller with such adocket or debrief beforehand canreduce risks such as employee healthand safety risks, reputation risks, andfinancial risks.

Travel Risk RatingBusiness travel can often requireemployees to travel to remotedestinations or previously untappedinternational markets.Maintaining a travel risk map with riskratings of different locations can bebeneficial in determining the kind ofprecautions to be taken. Travel to lessfrequented countries often come withrisks such as unstable geopoliticalenvironments, personal safety risks andeven location specific medical risks.By consulting the travel risk ratings fordifferent destinations and countries,preventative measures can be taken foremployee safety or the need for travel todestinations can be reassessed whenbeyond a certain threshold level.

Planning and BookingMaking travel arrangements involvesevaluating several service providers toensure best rates. If proper processesare not defined and followed orbookings are not made in a timelymanner, financial risks arise.TMCs often provide special corporaterates and flexible cancellation policieswhich can help reduce these financialrisks to an extent. This is especiallyhelpful in the case of last minutechanges in travel plans which can be asource of stress for the traveller.Additionally, the visa applicationprocess can pose several problems andthe TMCs must have adequateknowledge about the same for ease ofprocessing.

57

II. During TripOnce the employee has departed on theirjourney, the TMC must adopt a supportingrole to ensure that the journey goessmoothly and any unforeseen risks areadequately dealt with in a timely manner.For example FCM travel solutions provides

airport assistance to ensure that travellersdon’t miss their flights. Support during thisphase of the travel could include emergencysupport services, post arrival support, travelitinerary tracking and bleisure capabilities.Thus, the TMC and travel department canwork hand in hand to support the travellerduring their journey.

Emergency Support Services

• 24/7 helpline availability with trained professionals for support during emergency situations such as natural calamity, legal complications, terror attacks, etc.

• Advanced technological services such as AI chatbots and travel apps for guided traveller assistance, for example, Allianz’s app TravelSmart

• Travel alerts to keep traveller updated about geo-political or medical risks that may arise

Travel Itinerary Tracking

• Assisting with travel extensions or changes which may require additional arrangements

• Depending on company policy and traveller comfort, using a check in method or GPS tracking to ensure traveller safety while on the trip

• Use of a travel app to collate all trip related information in a centralized location

Post Arrival Support

• Assistance with arrival delays and subsequent changes that may be required in travel arrangements

• Ensuring smooth visa and immigration processing at destination

• Providing support with obtaining additional foreign exchange required during the trip

• Coordinate with traveller to ensure hassle free check in experience at stay accommodation

Bleisure Capabilities

• Bleisure is the combination of business trips extended to include leisure vacations, an increasingly common trend

• Providing traveller flexibility to extend trip for leisure purposes with ease and within travel policy

• Ensuring the traveller is cognizant of insurance coverage and risk related differences during the trip extension

58

III. Post TripRisk mitigation can continue post travelthrough a simplified expense managementsystem and gathering feedback from theemployee to inform and improve futuretravels. These two steps can play animportant role in ensuring business travelrelated risks are reduced long term.

Review and Improvement AnalysesAs data creation has accelerated the lastfew years, its analyses has takenprecedence in improvement efforts.Similarly, travel related data is oftenunderutilised and not reviewed on a regularbasis for extracting insights.TMCs can play an important role in dataaccumulation and analyses to supplementregular review of the travel policy andexperiences. This review should involvestakeholders such as the travel department,TMC and senior management to enable acomprehensive view of the company’sbusiness travel program and identifyactionable areas for improvement.Areas of improvement could span:• Potential cost savings opportunities in

bookings and turnaround time• Technological support to ease pressure

on the travel department and increaseemployee travel policy compliance

• Areas of increased TMC support toachieve higher efficiency rates

• Industry leading practices that could beadopted for operations improvement

• Reviewing traveller feedback for majorglitches and suggested policyimplementations to prevent future issues

Regular dialogue with key stakeholders canplay an integral role in ensuring thebusiness travel program is being utilisedefficiently and effectively towards achievingbusiness goals with minimum impact on thebottom line. TMC support in this arena leadsto providing end to end services andsupporting the company in holistic travelprogram management.

Simplified and Integrated Expense Reporting Systems• Complex expense reporting

systems often act as a deterrent to travel policy compliance

• Technology solutions can aid in integrating internal and TMC systems for elimination of lengthy offline processes

• TMCs support clients in choosing industry leading practices in easing expense reporting mechanisms, like the SAP concur app

Traveller Feedback

• Gathering traveller feedback can help improve future travel experiences

• Feedback can enable insights on areas such as problems encountered, problem resolution experience, improvement suggestions and areas of successful execution

• Data analysis can be used to inform future travel policy amendments

59

List is not exhaustive

Business travellers assist in travel risk mitigation to a significant level. Though the onusfalls majorly on other stakeholders such as travel department or TMCs, there are certainthings that the traveller can do as well. A pro-active and responsible approach fromtravellers can have a beneficial outcome on an organizations' business travel program.

Role of Traveller in Risk Management

Pre Trip

Comply to booking policy

Pay attention to briefings provided,

email communications, travel alerts, etc.

Adopt new technologies

introduced by the firm

Appraise employer of pre-existing health

conditions and emergency contact

information

Arrange meetings beforehand for a

productive business trip

During Trip

Adhere to travel allowances and avoid exceeding the travel

budget

Be available via phone or email in case of

emergencies

Ensure safety of company assets such as laptop to avoid data

security breaches

Assess progress of the work to make timely

decisions on extensions

Maintain professional behavior with

colleagues and adhere to work place norms at

all times

Post Trip

File expenses on time and follow

proper procedure

Raise issues faced to travel department

so that they can take action

“Sometimes employees book out of policy to avail cashbacks and then claim the full amount from

the company”

“We went to Tunisia for a scoping but ended up wasting 2 days just to set up meetings, instead of doing so before travel.”

Global Consultancy Firm

Leading Renewable Energy Firm

“Our TMC sends us a survey to fill to take regular feedback on issues faced by travellers.”

Top Venture Capital Firm

60

Travel Service Providers face their own setof risks while operating. However, sincethey are a core part of a business traveller’sjourney, these risks can have a directimpact on businesses as well. When theseTSPs do not provide the promised services,it can waste time, energy and costs.

Hence, corporates must select their TSPscarefully to ensure a smooth and hasslefree travel experience. In some cases,TMCs have pre-existing tie-ups with certainvendors. However, these tie-ups should alsobe re-evaluated to ensure there are nohidden arrangements such as kickbacks.

Role of the TSPs in Travel Risk Management

“We have never had issues with our cab

vendors because they always have alternates

available, in case of delay or no-shows. ”

Global Payments Gateway Company

• Adhere to SLAs and Cyber security and data privacy laws • Corporate offerings that include value added services to retain customers• Have proper systems in place for cash management and transparency• Robust financial records for due diligence and steady growth

Hotels/Accommodation Services

• Unhygienic/ poorly kept accommodation

• Indecent behavior by guests

• Overbooking• Low quality food• Sub-standard services• High commission to

OTAs

• Adherence to health and safety regulations

• ID verifications for all guests and value added services such as women only floors

Airlines

• Delayed/Cancelled flights due to restricted airspace, overcrowded runways, refueling issues

• Lack of funds leading to sudden closure

• Price wars with other carriers

• Timely communication on delays, cancellations or complications

• Proper compensation for delay/cancellation

• Strong relations with other airlines to accommodate stranded passengers

Cab Vendors

• Unprofessional behavior by driver

• Late arrivals • No Shows • Dirty Cabs• Disregard for traffic

rules by drivers

• Background check before hiring drivers

• Tracking systems in cabs

• Value added services such as Shuttle Busses, Premium cars for executives

• Spot checks for cleanliness of cars

Ris

ks fa

ced

Miti

gatio

n Te

chni

ques

Figure 35: TSP Risk Mitigation

“Some vendors give kickbacks to the travel managers/TMCs. This

can compromise quality of service. ”

Venture Capital Firm

61

Interaction between Stakeholders

CIOCFO

TMC Travel Manager

High quality services

Budget approvals for technology

Selection process

Spend analysis and budget related polices

Selection and implementation of technological tools

Selection process, timely bookings, industry expertise, market knowledge

Assessment of suitability of

technological tools

Understand the needs of the company

Additional point of contact for all travel related processes

Key point of contact for all travel related processes

Adherence to SLAs and high quality services

Adherence to SLAs and high quality services

Professional behavior

TSP

Traveller

Figure 36: Interactions between Stakeholders

There is an intricate flow of interactions between stakeholders in travel risk management.While major decisions flow from the top, Travel managers and TMCs must work closelytogether to carry out operations and ensure there is no duplication of work. This requiresthat all stakeholder must come together to ensure that the travel risk management isoptimized.

Impact of COVID 19 on Business Travel

63

COVID 19: A global pandemicThe Corona Virus Disease (referred to asCOVID-19) is an infectious disease causedby the novel corona virus, which attacks therespiratory system. The disease is highlycontagious transmitted via droplets fromcoughing, sneezing, spitting and can enterthe body through the eyes, mouth or nose.While the exact cause or origin of thedisease is yet to be ascertained, thedisease spread from Wuhan in China tomultiple corners across the world led bygrowing people movement.COVID-19 has proved to be fatal especiallyfor people and travellers over 60 years andis rapidly impacting people across agegroups. While the first case was diagnosedin late January, in less than 3 months, thetotal affected cases have reached over 3

million with more than 200,000 deaths.Many countries have take extrememeasures to curtail its spread through wide‘Lockdowns’ and cancellation of valid visasto limit incoming people traffic. Given thelarge scale spread of the virus, it has beenrecently declared a global pandemic by theWorld Health Organisation.European countries of Italy, Spain, Franceand Germany become hotspots of CoronaVirus, each having over 150,000 confirmedcases. Currently, USA has recorded over987,000 cases in a short span of 2-3months. In India, there are currently over27,000 cases with 884 deaths. Given India’svast population and density, there is acredible fear that this number will increaseexponentially, if appropriate and timelyprecautions are not taken.

COVID – 19: A Global Epidemic

No. of Corona Cases

>150,000

70,000- 150,000

<70,000

Source: Worldometer, as of 27th April 2020, 6:00pm

As countries began to shut their borders and limit travel, both domestic and international, to flatten the spread of this disease, many business travellers were anxious to get home.

Corona Death Toll (Highest)

USA 55, 415

Italy 26,644

Spain 23,521

Total Cases: 3,012,224Total Deaths: 207,860Recovered:888,045

Figure 37: Spread of COVID 19 across the world

64

Impact of COVID on business travelThe spread of COVID 19 has had acascading impact on business operationsacross regions. As the situation escalated atan unexpectedly fast pace., in certaincases, organisations did not have sufficienttime to take precautions and make alternatearrangements. There was also someconfusion in terms of adherence toadvisories released by the government.Thus, business travellers who were in themiddle of their trips were exposed a host ofpotential risks. As the duty of care falls onthe employers, companies had tounderstand the various risks involved andtake necessary steps to mitigate them.These risks can have equal negative impacton the organisation as well as the traveller. Once the seriousness of the situation was

realised, many organisations had to takeprecautionary steps. With ‘travel safety’ asthe main concern for most organisations,business travel has dwindled to minimallevels.Figure 39: Steps taken by organisations

Impact on business travel

Text here

Financial Risk

Personal Risk

Regulatory Risk

• Risk of contracting the virus

• Risk of traveller spreading the virus to others

• Additional unforeseen costs of business travel

• Re-booking/ Cancellation fees

• Visa expiry • Miscommunication

with regulatory authorities

• Being quarantined in unfamiliar airport/ country

of companies have cancelled or suspended all or most international business trips

96%

of companies have cancelled or suspended all or most domestic business trips

82%

cancelled already scheduled meetings, events and conferences

95%

92% postponed meetings, events and conferences

Source: GBTA Survey , as on March 23rd 2020

Other Risks

Travel Program Risk

• Limited / lack of transport options

• Inability to return to origin

• Lack of emergency services

• Death during trip • Lack of access to

essentials such as food, hygiene facilities, etc. for travellers

• Reputational damage for organisations

Figure 38: Business Travel Risks during Corona

65

Within a short span of 3 months, COVID-19has spread globally and countries arestruggling to deal with the fallout. In themidst of this, many organisations havecancelled travel to certain regions andareas. This has resulted in drastic fall inbusiness travel demand and spends.Additionally, given that some countries suchas India and UK are currently under a threeweek lockdown, business travel spends areexpected to decline further.

This situation is expected to last atleast forthe coming few months. Hence, companiesare taking precautions and revamping theirtravel polices to fit the need of the hour.GBTA estimates significant reduction inbusiness travel spends for 2020 given thecurrent scenario and expected gradualrecovery in the latter part of the year.

Potential business travel impact

Potential 2020 Business Travel Spend Revenue Loss Due to Coronavirus

Source: GBTA BTI™ Outlook Annual Global Report & Forecast (2019)Methodology: GBTA conducted a poll of its members across the globe from March 4-6, 2020 and received responses from 1,095 GBTA global member companies

Country Potential Revenue loss in USD billions

% of companies cancelling/suspending travel to the region

China $404 95%

Hong Kong $3.4 87%

Taiwan $3.3 79%

Asia Pacific* $120 77%

Europe $190 51%

North America $63 18%

Latin America $17 30%

Middle East $18 47%

Total $820

This represents 54% of the forecasted business travel spend for 2020.

66

In times of uncertainty, TMCs have activelycome out in support of their clients. Due totheir vast experience, expertise and globalnetwork, TMCs (especially global TMCs) arebetter equipped in such situations, wheretheir client employees’ trip has been cutshort due to unforeseen circumstances.In March 2020, India imposed a travel banfor certain regions, followed by a nationwide

lockdown. This led to multiple complicationsfor travelling employees who were trying toget home. Since, it is their duty to ensurethe safe return of their employees,organisations turned to their TMC partnersto address the issues that arose due toCOVID 19. In some cases, the diligent andtimely response from TMCs ensured a safeand secure return for the employees.

Actions taken by TMCs

How TMCs have worked Actions taken by TMC

Employee to return to

India from Europe, via Turkey on 17th March

2020

• Turkish Airport Authorities did not allow them to board flight due to travel advisory from India to restrict travel effective from 18th March 2020

• TMC was unable to connect to airport authorities

• Lack of alternate flights to India

• Familiarised themselves with the travel advisory to find ways to bring employee home

• Made numerous attempts to contact relevant authorities, finally connecting to Indian Bureau of Immigration for assistance

• Obtained special permission to allow employee travel from Indian Embassy in Turkey

Problems FacedSituation

Actions taken by TMC

Employee to return to

India from Tampa, on 20th March

2020

• Emergency Support Team was overloaded with requests

• Lack of seats on flights to India

• Usual flight route had to be avoided due to Indian Government travel advisory

• Immediate time limit to book tickets

• Local team stepped up and began searching for flight options

• Continuous monitoring to find seats at competitive prices

• Quick decision making to book available seats and ensure safe passage for traveller

Problems FacedSituation

67

Although some countries such as India arecurrently under lockdown, TravelManagement companies must prepare forpost COVID 19 travel scenarios. In thesetroubles times, companies may turn to theirtravel partners for guidance and advice.

When lockdown, travel bans, etc. are lifted, organisations must be prepared to resume essential business travel. As the threat of COVID 19 would be a valid concern the coming months, at the least, companies and TMCs must proceed with caution.

Way forward

Heed the advice from all global health officials such as the CDC and the WHO when thinking about their travel plans

Be informed of operating airlines and keep companies updated on cancelled/ rescheduled flights

Stay up to date with all travel advisories, domestically and internationally

Stay connected with local and global offices for information sharing across regions and evacuations, if needed

Maintain strong relations with travel service providers such as airlines, hotels to ensure hygiene standards such as required levels of sanitation

Strengthen emergency response teams to handle higher loads of requests

Update health records of all current and potential travellers.*

Tie up with neutral third party organisations such as ISOS or World Aware for assistance in areas where TMC network is not strong

Way forward for TMCs

Develop criteria for differentiating between essential and non-essential travel

Develop SOPs for dealing with such situations

Employee tracking to locate them easily in case of emergency

Encourage Post trip checkups and monitor travellers to ensure they did not contract COVID on the trip

*Persons with pre-existing health conditions or those who are over the age of 60 should not be allowed to travel as they are more vulnerable to COVID

Way Forward

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The global business travel landscape hasundergone a transformation in the past fewyears and continues to do so with the rapidemergence of new technologies anddisappearance of international boundaries.This evolution has been accompanied byemergence of new risks and amplification ofsome old risks. Geopolitical and climaterelated travel disruptions have now becomemore common and require dynamic riskmanagement to safeguard travellers.Additionally, new risks related to dataprivacy and cyber security have cropped upin line with technological advancements.Business travel related risks have gainedpriority now more than ever with the widerange of risks that exist. These risks spantravel program management to travelrelated activities. A robust travel riskmanagement strategy and accompanyingsystems are required to protect both thetraveller and the company.

A Travel Risk Management PreparednessSpectrum can be used to judge anorganization’s travel program and identifyareas of excellence as well as scope forimprovement. Borrowing from theframework used in iJet’s Travel RiskManagement and Maturity Model (TRM3),the spectrum also has 5 defined five levels,each with successive levels ofimprovement.Six key criteria can be used to evaluate acompany’s level of preparedness when itcomes to travel risk management – travelpolicy, systems and processes, TMCinvolvement, pre trip processes, during tripprocesses and post trip process.Across each criteria, an organization can beat one of five levels, ranging acrossunderactive, reactive, active, proactive andoptimized. Benchmarking across the levelscan assist in gaining an understanding ofimprovement areas.

Way Forward

Travel Policy

Systems and Processes

TMC Involvement

Pre Trip Processes

During Trip Processes

Post Trip Processes

Figure 40: Six Criteria for Evaluating an Organization’s Travel Risk Management

Preparedness

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Travel Risk Management Preparedness Spectrum

ProactiveActiveReactiveUnderactive OptimizedTravel Policy Development and Execution

Underdeveloped, regulating few areas

Established, with dispersed awareness

Well formulated with majority aware of policy

Comprehensive, all travellers aware of policy

Comprehensive, widespread awareness across institution

Policy Violations/ Compliance Frequent violations Some violations Few violations Infrequent violations Rare violations

Risk Mitigation Strategy Practically non existent Nascent systems, under development

Limited focus, only across priority areas Well developed Well developed and actively

monitored for improvement

Senior Management Involvement

Unaware of travel activities, low to no prioritisation

Intermittent involvement, in case of emergencies

Travel related reports periodically discussed and reviewed

Travel activities and risk processes regularly reviewed

Active involvement in anticipation of new risk areas and review of travel activities

Process Automation Manual processes with no technological implementation

Majorly manual processes with some automation

Partial technology adoption with few manual processes

Appropriate technology employed, with Self Booking Tool functionality

Complete process automation with advanced technology adoption integrated with IT systems

SOP Development SOPs are missing, resulting in frequent confusion

SOPs are present but inconsistent with areas of ambiguity

SOPs are developed but lacking consistent application

Well developed SOPs with consistent application

Clear and elaborate SOPs with provisions for unexpected circumstances

Stakeholder Awareness Stakeholders unaware and confused

Stakeholders patially aware of some SOPs

Stakeholders aware of duties and responsibilities, confusion is rare

Stakeholders aware of duties and responsibilities and participate regularly

Stakeholders actively participate and suggest process improvements

Turnaround Time Long turnaround times Inconsistent and wide range of turnaround times

Reasonable turnaround times depending on employee responsiveness

Industry average turnaround times with some visibility on request tracking

Low turnaround times with user friendly features for tracking requests

TMC Services UtilizationAll activities handled internally on ad hoc basis, with rare TMC utilization

TMC services employed partially and utilised intermittently, in conjunction with internal capabilities

TMC services regularly utilised to support internal travel team

TMC services utilised extensively to support the internal travel team and the traveller

TMC services used for full scale support across travel activities, including strategic insights and improvement suggestions

Duplication of Work Frequent duplication of work due to largely manual processes

Duplication of work and miscommunication is common Duplication of work is infrequent Rare duplication of work No duplication of work

TMC CoordinationLittle to no coordination with TMC given infrequency of services

Inconsistent coordination with TMC, when required, lacking clarity in travel activity flow

Adequate coordination with TMC to avoid miscommunication and duplication of work

Well established lines of communication with the TMC to ensure coordination

Well integrated operations with the TMC to ensure efficiency and clarity in communication

Data Reporting No data reporting mechanisms Intermittent data reporting, usually incident based

Data based report generation functionality available for regular review

Monthly MIS reports generated and communicated to leadership for insights

Monthly MIS reports generated and communicated to leadership with insight based recommendations

IT System IntegrationIT systems not integrated with TMC systems due to infrequency of service utilisation

IT systems are not integrated with TMC systems due to low volume of involvement

IT systems are mostly aligned with the TMC systems for easier workflow management

IT systems are well integrated with TMC systems

IT systems are well integrated with TMC systems and regularly reviewed to ensure interoperability

Criteria

Trave

l Polic

ySy

stems

and P

roce

sses

TMC I

nvolv

emen

t

Potential areas of TMC support

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Risk Assessment Tools/Processes

No pre trip risk assessment processes

Basic destination risk assessment when required and traveller details are maintained but records often incomplete or outdated

Destination risk is assessed pre travel for international travel and traveller details maintained

Destination risk assessment is integrated into approval process and traveller details are maintained and used during booking process

Comprehenesive destination risk assessment to determine appropriate processes and traveller details regularly updated and utilised

Policy Awareness Trainings No traveller trainings for policy awareness

Brief training for policy disclosure

Periodic trainings for traveller awareness

Regular and interactive travel policy trainings, integrated into travel authorisation

Regular and interactive trainings for travellers integrated in travel authorisation; separate training for high risk travel

Pre Trip Debrief/ Expectation Setting

No pre trip debrief or expectation setting

Standard pre trip debrief conveyed via email

Partially customised pre trip debrief with traveller for expectation setting

Traveller given a comprehensive debrief specific to itinerary, well in advance, when possible

Traveller given a one-on-one debrief with a designated contact person with experience/knowledge about destination

Travel Itinerary Travel itinerary is ad hoc, not formalised and documented

Travel itinerary is inconsistently formatted, sometimes formulated by traveller and not consistently documented

Travel itinerary is clearly formulated and shared with traveller

Travel itinerary is clearly formulated and shared with traveller and other relevant parties

Travel itinerary is clearly formulated with options for traveller customisation and shared with traveller and relevant parties

Medical Check No medical history or health check up pre travel

Medical history maintained for high risk travellers

Simple medical history maintained for frequent travellers

Comprehensive medical history maintained for all travellers

Pre trip health checkup and updated medical history maintained

Insurance Coverage No specific travel insurance coverage

Travel Insurance only for senior leadership

Travel insurance issued for most travellers

Standard comprehensive travel insurance available for all travellers

Top of the line corporate travel insurance specific to company needs

Travel AlertsTraveller responsible for keeping track of travel alerts via news and other outlets

Inconsistent travel alerts Infrequent travel alerts, only in case of emergencies

Timely travel alerts and traveller tracking

Timely travel alerts through preferred channel of communication along with traveller tracking

Emergency Response Systems

Dispersed emergency response systems, with inconsistent availability

Emergency response team engaged but not well equipped to handle a range of emergencies

Emergency team engaged and well prepared, no 24/7 helpline

Emergency team available through 24/7 helpline and well equipped to handle emergencies

Standard international hotline with 24/7 assistance, manned by professional SOS agency

Emergency Contact Awareness

Employees unclear who to contact in case of emergency

Employees have a vague understanding on who to contact in case of emergencies

Most employees have a good understanding of who to contact in case of emergencies

Employees clear on who to contact in case of emergency

Employees clear on who to contact in case of emergencies and have information handy when needed

Expense ReportingAd hoc expense reimbursement processes, expenses frequently higher than expected

Largely manual expense reporting systems with some budgeting inconsistencies

Partially automated expense reporting systems, with few reporting delays and disputes

Well developed expense reporting systems, supported by automation, corporate cards and clear workflow visibility

Automated and mobile expense reporting integrated with IT systems, corporate cards and clear workflow visibility

Feedback and Grievance Redressal

No traveller feedback mechanisms

Intermittent traveller led feedback

Traveller feedback gathered occasionally

Traveller feedback gathered regularly

Travellers regularly given a platform to air grievances and give feedback, which is analysed for insights

Pre Tr

ip Pro

cess

esDu

ring T

rip Pr

oces

ses

Post

Trip P

roces

ses

Potential areas of TMC support

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ConclusionEven with the increasingly pervasive natureof technological advancements like videoconferencing, business travel seems tomaintain its foothold with steady growth.Across the travel policy and travellerjourney, exist a diverse set of risks, which ifleft unattended, can have graveconsequences.These risks can lead to reputational,profitability related, legal and productivityrelated impacts which can adversely affectboth the company as well as theemployees. Thus, it is essential for firmstoday, irrespective of size, to ensure theyhave a travel risk management andmitigation strategy in place.Since risks are often of a dynamic nature,changing in frequency, intensity, and form,firms must regularly review and fortify their

travel policies and procedures throughidentification of improvement areas.A recent example of an unforeseen and risk-filled situation is the COVID 19 outbreak. Itsdrastic effect on business travel and theeconomy in general, has created a need toreconfigure the entire business travelprocess.Additionally, business travel spans severaldifferent stakeholders in differentdepartments, who must be regularlyinvolved in the review and improvementactivities to ensure a holistic approach.With the rise of OTAs and shared economyservices, options have expandedconsiderably for an increasingly millennialdominated and mobile workforce. Aspreferences and available options undergotransformation, it is important for riskstrategy to keep up with the same.

Way Forward

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Glossary

AI Artificial IntelligenceB1 Visa Tourist Visa for USABleisure Business LeisureCFO Chief Financial OfficerCIO Chief Information OfficerCXOs C Suite OfficersEU European UnionFDI Foreign Direct InvestmentForex Foreign ExchangeGBTA Global Business Travel AssociationGDP Gross Domestic ProductGDPR General Data Protection RegulationGPS Global Positioning SystemH1B Visa Non immigrant employment visa for USAHR Human ResourcesISOS International SOSIT Information TechnologyKPI Key Performance IndicatorMICE Meetings, Incentives, Conferences, EventsMIS Management Information SystemOTA Online Travel AgentsPC Personal ComputerROI Return on InvestmentSBT Self Booking ToolSLA Service Level AgreementSME Small and Medium EnterprisesSOP Standard Operating ProcedureTMC Travel Management CompaniesTRM3 iJet’s Travel Risk Management and Maturity ModelTSP Travel Service ProviderUAE United Arab EmiratesUK United KingdomUSA United States of AmericaUSB Universal Serial BusUSD US DollarVPN Virtual Private NetworkWi-Fi Wireless FidelityY-o-Y Year on Year

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Disclaimer

o The information contained herein is of a general nature and is not intended to address thecircumstances of any particular individual or entity. The Report shall not be a substitute for anydue diligence to be carried out by any party. No one should act on such information withoutappropriate professional advice after a thorough examination of the particular situation.

o While information obtained from the public domain or external sources has not been verified forauthenticity, accuracy or completeness, KPMG has obtained information, as far as possible, fromsources generally considered to be reliable. KPMG assumes no responsibility for suchinformation.

o In connection with the Report or any part thereof, KPMG does not owe duty of care (whether incontract or in tort or under statute or otherwise) to any person or party to whom the Report iscirculated to and KPMG shall not be liable to any party who uses or relies on this Report. KPMGthus disclaims all responsibility or liability for any costs, damages, losses, liabilities, expensesincurred by such third party arising out of or in connection with the Report or any part thereof.

o By reading/ viewing the Report, the reader of the Report shall be deemed to have accepted theterms mentioned hereinabove.

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FCM Travel SolutionsContact in India

Rakesh NegiVice President and Brand LeaderFCM Travel SolutionsT : +91 98718 01176E : rakesh.negi@in.fcm.travel

Email: info@in.fcm.travelToll Free: 18002661312in.fcm.travel