This bachelor thesis is concerned with the cost reduction potential of travel management tools with regard to business travel expenditures in micro, small, and medium-sized enterprises. For this purpose, primary research in the form of a questionnaire was conducted. The results, which are presented at the end of the thesis, reveal that travel management tools are on the spot for micro, small and medium-sized enterprises but by far not as much that one could say the market is saturated, since 29 percent of the companies are currently applying travel management tools, but more than half of them have not yet thought about the matter. The findings also show that corporate credit cards and online booking engines are by far the most popular tools and that travel policies and online booking engines are the most efficient tools for micro, small, and medium-sized enterprises with respect to their corresponding cost saving potential.
Table of Contents
1. Thesis Introduction
1.1. Introduction
1.2. Objects
1.3. Dissertation Structure
2. Business Travel
2.1. Definition of Business Travel
2.2. Current Market Overview of the Business Travel Market
2.3. Historic Development and Trends in Business Travel
2.4. Specialties of Business Travel in Small and Medium Sized Enterprises
2.4.1. Definition of Small and Medium Sized Enterprises
2.4.2. Corporate Travel Behavior in Small and Medium Sized Enterprises
2.4.3. Cost Structure
3. Travel Management
3.1. The Business Travel Management Process
3.1.1. Definition of Business Travel Management
3.1.2. Tasks and Objectives of Business Travel Management
3.1.3. Stages of the Business Travel Management Process
3.1.3.1. Pretrip Process
3.1.3.2. OnTrip Process
3.1.3.3. PostTrip Process
3.1.4. Positioning of Business Travel Management in Companies
3.2. Business Travel Management Tools
3.2.1 Corporate Credit Card
3.2.2. Travel Policy
3.2.3. Online Booking Engine
3.2.4. Travel Agency
3.3. Business Travel Management Tools for Small and Medium Sized Enterprises
4. Research Methodology
4.1. Research Question
4.2. Hypothesis
4.3. Research Design
4.4. Data Collection Method
4.4.1. Secondary Data
4.4.2. Primary Data
4.5. Sampling Procedure
4.6. Questionnaire Design and Layout
4.7. Data Analysis
4.8. Research Problems and Limitations
5. Research Results and Analysis
5.1. Facts and Figures
5.1.1. Response Rate
5.1.2. Characteristics of the Respondents
5.1.2.1. Industries
5.1.2.2. Headcount
5.1.2.3. Annual Turnover
5.1.2.4. Annual Travel Expenditures
5.2. Micro, Small, and Mediumsized Enterprises applying Business Travel Management Tools
5.3. Reduction of Travel Expenditure
6. Summary of Findings and Suggestions
Objectives and Topics
This thesis examines the cost reduction potential of travel management tools within micro, small, and medium-sized enterprises (SMEs). The primary research question addresses the current rate of adoption of these tools among SMEs and investigates how effectively they contribute to reducing overall corporate travel expenditures.
- Analysis of the current business travel market and trends.
- Evaluation of travel management processes and specialized tools (e.g., corporate credit cards, online booking engines).
- Exploration of travel habits and cost structures specific to the SME sector.
- Empirical study on the correlation between the implementation of travel management tools and measurable cost savings.
- Strategic recommendations for SMEs and travel management providers to optimize corporate travel efficiency.
Excerpt from the Book
2.4. Specialties of Business Travel in Small and Medium Sized Enterprises
Naturally, one would expect, the larger the company, the larger the business travel activity and expenditure, respectively. Although, this is certainly true, due to the enormous number of SMEs, it is a matter of fact that in the year 2007, EUR 39.1 billion out of a total of EUR 48.7 billion business travel expenditure, were spent by SMEs in Germany. In the UK, 99.9 percent of 3.7 million companies active, are classed as SMEs with less than 250 employees, according to the government’s Small Business Service. Carlson Wagonlit Travel puts business travel expenditures at about 1.5 percent of turnover. Taken the £ 0.5 trillion turnover generated by SMEs in the UK as a basis, it turns out that the SME sector spends an amount of £ 7.5 billion on business travel.
The author M. Frary wrote in his article ‘Small - the new big’: “Half of the money spent on business travel in Europe is thought to emanate from small to medium-sized enterprises (SMEs). Travel management companies (TMCs) would love to get their hands on that business but the high volume, low value and fragmented nature of the market means it has traditionally been difficult to access.” But once obtained as a corporate client SMEs secure constant revenues and are loyal to their business partners, since they do not do as many bid invitations as larger enterprises. Just because of lower service fees SMEs do not right away change their supplier, states Michael Marx, head of LCC Business Plus. Furthermore, margins for TMCs are often higher with SMEs and the economic risk is better distributed when serving many SMEs instead of just a few big ones.
Even if the market is relatively difficult to access, it is “a market that is increasingly attracting the attention of the major players in the business travel world”. Big TMCs are nowadays launching products and services especially designed and addressed to the needs and wants of SMEs. But what exactly are the needs and wants of a SME?
Summary of Chapters
1. Thesis Introduction: Outlines the research scope, the importance of managing business travel in SMEs, and defines the specific objectives of the thesis.
2. Business Travel: Provides a definition of business travel, an overview of the current market landscape, historical trends, and investigates the specific characteristics and cost structures within SMEs.
3. Travel Management: Explains the complex business travel management process, its stages, and evaluates various tools like corporate credit cards, travel policies, and online booking engines.
4. Research Methodology: Details the primary research approach, including the descriptive research design, the sampling procedure using a systematic approach, and the questionnaire design.
5. Research Results and Analysis: Presents the findings from the survey, including statistical data on the respondents, their industry, headcount, turnover, and the measured impact of travel management tools on costs.
6. Summary of Findings and Suggestions: Concludes the thesis by confirming the hypothesis, summarizing key insights, and providing strategic recommendations for SMEs and travel management agencies.
Keywords
Small and medium-sized enterprises, SMEs, Travel management tools, Business travel, Cost reduction, Corporate credit card, Travel policy, Online booking engine, Travel management process, Market trends, Travel expenditure, Business travel management, Primary research, Survey analysis, Cost efficiency.
Frequently Asked Questions
What is the primary focus of this thesis?
This thesis examines the potential for cost reduction in business travel through the implementation of dedicated travel management tools specifically for micro, small, and medium-sized enterprises (SMEs).
What are the main thematic areas covered?
The study covers the definition and market overview of business travel, the specific needs of SMEs, the stages of the travel management process, and an empirical analysis of various tools used to manage and optimize travel costs.
What is the central research question?
The research asks what portion of SMEs currently utilize travel management tools and to what extent these tools actually help in reducing their business travel expenditures.
Which scientific method is employed?
The research follows a descriptive research design, utilizing a primary data collection method in the form of an internet-based, structured questionnaire distributed to SMEs in Germany.
What topics are discussed in the main body?
The main body treats the business travel management process (pre-, on-, and post-trip), describes various management tools like credit cards and booking engines, and provides a detailed analysis of primary survey results.
Which keywords characterize this work?
The key concepts include SMEs, travel management tools, business travel, cost reduction, corporate credit cards, and online booking engines.
How do SMEs currently handle their travel arrangements?
The research indicates that many SMEs manage travel informally, with a significant reliance on individual booking efforts, and only a minority currently employ structured travel management systems.
Which travel management tools are identified as most effective?
The findings suggest that travel policies and online booking engines are among the most effective tools for SMEs to realize measurable cost savings in their business travel.
What conclusion does the author reach regarding market readiness?
The author concludes that while there is significant potential for cost reduction, many SMEs have not yet considered implementing professional travel management tools, leaving a substantial market opportunity for providers.
- Citar trabajo
- Benjamin Heselhaus (Autor), 2009, Potential reduction of corporate travel expenditures, Múnich, GRIN Verlag, https://www.grin.com/document/147007
