Travel management companies can save the public sector money

It is being reported that public spending is at an all-time high with no signs of slowing down indicating that public sector organisations must find a way to cut costs when considering the budget restraints that have been reported across the whole public sector.[1]

Travel management companies (TMCs) can help organisations to manage their corporate travel needs by taking control of several factors. One of these factors is being able to relieve some of the stress of travel with expert supervision, TMCs do this by handling bookings and logistics, managing expenses, enforcing policy, managing risks, offering concierge services, as well as offering 24/7 support to their customers for any queries or issues.

The need for travel management companies is being accentuated by reports that travel costs are expected to continue to rise in 2025, “Travel management company CWT is predicting "the great moderation" of travel pricing in 2025 and a period of "normalised growth", according to its tenth annual forecast published today.”[2] This highlights the importance of saving on travel in 2025.

Travel management companies can assist public sector organisations by finding savings in ways that often are not accessible without their support. Some examples include:

1. Negotiated discounts - TMCs leverage their buying power to secure lower rates on travel, accommodation and rentals.
2. Policy enforcement - By guaranteeing that all travel bookings comply with policies, TMCs help avoid unnecessary expenses.
3. Expense tracking and reporting - They can provide detailed reports on travel spending, helping to identify areas that require cost cutting and improved efficiency.
4. Centralised booking systems - Centralising travel bookings can reduce administrative costs.
5. 24/7 support - This ensures that any travel disruptions will be communicated clearly, and the best solutions can be found.
6. Risk management - Providing real-time updates on travel regulations and security concerns can help to avoid costly delays and improve traveller safety.
7. Technology integration - TMCs offer advanced booking tools and platforms that integrate with the organisations existing systems, further reducing administrative costs and improving efficiency.

Are you looking for the most cost-effective travel management solution?

At Procurement Services, we can offer a compliant and efficient route for all public sector organisations to access travel management companies.

Working together with our awarded suppliers, your organisation can make the most of the mentioned benefits, through our Travel Management framework.

To access our Travel Management framework, visit here.