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Corporate Booking Tools (CBT): How companies and TMCs are taking control of travel expenses

Corporate Booking Tools (CBT): How companies and TMCs are taking control of travel expenses

Corporate booking tools are no longer just a digital replacement for telephone or e-mail business travel bookings. Modern CBTs connect booking, travel policy, approvals, expenses, data and, increasingly, artificial intelligence. Through corporate booking tools (CBTs): how companies and TMCs are taking control of travel costs, companies gain better control over spending. At the same time, for TMC agencies, this means a change in the way they organise their service and technology for corporate clients.

When an employee independently books a flight or hotel for a business trip, a fairly complex system can lie behind just a few clicks today. A corporate booking tool, or CBT, must know who is travelling and which rules apply to that employee. Also important are data on tariffs that the company has negotiated and whether the booking requires additional approval. How the expense will be recorded upon return is also important.

That is precisely why a CBT is no longer just a booking engine. It has become one of the main technological components of a corporate travel programme.

From a booking tool to a business travel management system

The basic task of a CBT is relatively simple: to enable an employee or travel consultant to search for and book flights, hotels, rail travel, car hire and other services in one place.

Business value only begins when the company's travel policy is applied to that content.

If economy class is mandatory for an employee on European flights, the system can apply this during the search. Similarly, if a hotel in a certain city must not exceed a defined amount or the company prefers a specific hotel chain, the system applies the appropriate rules. The traveller therefore does not have to read the internal policy every time to know what they are allowed to book.

In the event of a deviation, additional alerts or an approval process may be triggered. For instance, a more expensive flight may be permitted due to the timing of a business meeting, but the booking goes to a line manager for confirmation prior to ticket issuance.

SAP Concur today lists automated enforcement of travel policy, approval processes, centralised reporting and a breakdown of expenditure among the core functions of its travel platform. In the latest generation of Concur Travel, it goes a step further. AI is also used to transform text-based company rules into configured policy rules.

That is an important change. The travel policy is no longer a document that an employee opens when they are not sure what they are allowed to do. It is becoming part of the booking process itself.

Where CBT really delivers control and savings

The greatest benefit of TMC is not necessarily finding the cheapest individual airline ticket. It is much more important to control total spend across the entire travel programme.

Through the tool, the company can direct bookings towards contracted suppliers and utilise corporate hotel rates and private airline fares. It can define budgets and monitor the extent to which bookings are made in compliance with policy.

Data is equally important. If bookings are made through various websites, directly with carriers, by phone and via several agencies, the travel manager struggles to get a complete picture. A centralised system shows how much is being spent per destination, department or supplier. It also shows how early employees book and where departures from policy most frequently occur.

Such data then becomes a negotiating tool. A company that can accurately demonstrate its volume with an individual carrier or hotel chain has a better basis for negotiating corporate terms.

At the same time, a good travel policy should not be so rigid that it drives employees outside the system. So-called leakage is precisely one of the major problems of corporate programmes. A traveller finds a better or simpler option on the public web and makes a booking outside the approved channel. In doing so, the company loses not only control over the price, but also the data necessary for reporting, duty of care and future negotiations.

Because of this, leading platforms are increasingly focusing on user experience rather than just control. Navan, for example, combines a centralised inventory with personalised limits and dynamic rules. These rules can react to market prices instead of applying the same fixed amount to every destination.

For travel managers, the goal is to find a balance: enough control for the company to manage costs, but a simple enough process that the employee has no reason to go outside the official booking channel.

The booking engine is changing: NDC, AI and travel & expense are increasingly interconnected

Behind the user interface lies another important part of CBT: content access.

Traditionally, a large proportion of corporate airline bookings relied on global distribution systems such as Amadeus, Sabre and Travelport. Today, the picture is more complex. A modern booking engine can combine GDS content, direct connections with airlines, NDC, low-cost carriers, hotel sources and other API integrations.

This is especially important in the aviation segment. NDC has expanded the possibility of distributing additional tariffsa, ancillary services and offers that are not always identical to those in the traditional distribution stream. Navan uses its newer multi-city booking engine, for instance, to combine different content sources, including NDC. This is especially true for more complex itineraries that were previously often passed on to an agent.

The second major change is artificial intelligence.

In SAP Concur, the Booking Agent uses conversational AI. In this way, it turns a traveller's request into a travel proposal that takes into account company policy, budget and employee preferences. The idea is no longer for the user to go through dozens of filters, but simply to write what they need. At the same time, the system applies company rules in the background.

AI is not only used on the passenger side, though. It is increasingly being applied in policy administration, expense processing, traveller support and data analysis.

The boundary between booking and expense management is simultaneously being erased. Perk, formerly TravelPerk, has combined travel and spend management into a single platform following its rebranding. On the other hand, Amadeus Cytric also connects booking and expense processes and integrates them with business environments such as Microsoft Teams.

In other words, the market is moving away from the idea of a standalone „booking tool“. The aim is to connect the entire process, from the travel request to booking, payment, invoicing and the final financial report.

What the development of CBT means for TMC agencies

For Travel Management Company agencies, CBT brings both opportunity and pressure.

A standard return flight ticket or simple hotel reservation no longer needs to go through a travel consultant. If an employee can make such a booking themselves, within policy and with an automated workflow, the agent can focus on more complex itineraries, changes, disruptions and advisory services.

This changes the economics of the TMC business. The value of the agency is gradually shifting away from the transaction itself towards the management of technology, content, data, integrations and support.

Particularly interesting is the development of platforms like Spotnana. Its Travel-as-a-Service model is not conceived merely as another CBT for the end user, but as a technological infrastructure that can be used by TMCs. The online booking tool, agent desktop, booking engine, profiles, policies and data are all housed on a shared platform. Such an approach should reduce the gap between online booking and subsequent servicing by the agent.

This is particularly relevant for regional TMC agencies. It is not necessary to develop a proprietary booking system from scratch in order to offer clients a modern digital experience. There are an increasing number of models where a TMC can utilise a global technology platform. It can also integrate its own service and local expertise while retaining the relationship with the corporate client.

Therefore, when choosing a CBT, the licence price should not be the only criterion. You need to look at the quality and breadth of content, NDC and low-cost options, modification and cancellation automation, policy engine, approval workflow, reporting, integration with HR and financial systems, duty of care, payment options, and the quality of support when automation is no longer enough.

This is also where the main difference lies between an average and a well-structured corporate travel programme.

A good CBT is almost invisible to the employee: they quickly find the right option and book it. In the background, the travel manager gains control, data and an overview of costs. Finance gets a cleaner process, and the TMC fewer routine transactions and more room for service that truly requires expertise.

Precisely why corporate booking tools are becoming an infrastructural part of business travel. They are not a replacement for a TMC nor for a travel manager. Instead, they automate the part of the work where human intervention brings the least value, while leaving people and data for situations where they are truly needed.

Stipan Spaija
Stipan Spaija

Stipan Spaija

Stipan Spaija – founder and editor of Tragento.com

Stipan Spaija is the founder and editor of Tragento, the region’s largest tourism industry portal. He has more than 25 years of experience in tourism, with a focus on aviation, travel technology and distribution.

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