Business travel has long been necessary to forge connections, explore new markets, and remain competitive. However, small and midsize enterprises face a heavier burden, as travel requires more effort to balance their strategic needs with limited resources and time constraints.
Heightened Importance of Business Travel
Research highlights the importance of face-to-face discussions. In-person meetings are 34 times more effective than emails and are vital in offering clarity and building relationships. Meeting with clients, partners, and colleagues has become even more crucial in today’s business environment, where employees often work in partially or fully remote settings.
In addition to staying connected, business travel offers numerous benefits to SMEs, including:
- Promoting Market Expansion: Visiting new regions or potential partners fosters a deeper knowledge of local preferences and competitors’ activities.
- Cultivating Stronger Relationships: By meeting in person, SMEs can more accurately evaluate customer needs, build trust, and enhance loyalty.
- Encouraging Collaboration and Innovation: Employee gatherings can prompt fresh ideas, which is integral to staying competitive.
- Contributing to Diversified Revenue Streams: Exploring new markets and meeting prospective customers in person can reveal new avenues for growth.
- Improving Employee Satisfaction: Business travel can enhance employee satisfaction and aid retention to help SMEs compete with larger companies.
Travel Management Challenges
Despite its crucial nature, business travel can consume a substantial portion of an SME’s finances and consume valuable time to plan and manage. In addition, SMEs operate with limited overhead, which requires them to justify every trip. Last-minute changes from unexpected events can lead to higher travel costs.
While the proliferation of booking platforms may benefit consumer travel, it can also make travel planning overwhelming, time-consuming, and burdensome for SMEs: Small businesses spend an average of 88 minutes organizing a single business trip, and medium-sized companies typically take 12 minutes longer, totaling 100 minutes.
Benefits of a Dedicated Travel Program
Partnering with a dedicated travel provider, SMEs can optimize their resources and enhance efficiency with:
- Transparent Pricing and Guaranteed Discounts: This reduces the time spent searching for deals, enabling SMEs to secure favorable rates.
- No Minimum Spend Requirements: Some programs cater specifically to smaller budgets, recognizing the needs of SMEs.
- Rewards for Business and Personal Stays: Loyalty points awarded to individual travelers and the company benefit employees and stretch SME funds.
- Consolidated Data and Insights: A centralized dashboard that tracks spending, average daily rates, and room nights supports informed planning.
IHG Business Edge: Tailored for SMEs
An example of a solution specifically designed for SMEs is IHG Business Edge from IHG Hotels & Resorts. The program assists SMEs in managing their travel more efficiently. Its features include:
- Free to join: There are no hidden fees or minimum spending requirements.
- Guaranteed Discounts: Offered at over 6,000 hotels worldwide, the discount covers a diverse portfolio of 19 unique brands, from the iconic Holiday Inn and Holiday Inn Express to InterContinental, the world’s first international luxury hotel brand.
- One-Stop Travel Portal: The portal facilitates easier bookings and provides visibility into company-wide travel data, helping business owners identify trends and optimize budgets.
- Accelerated Loyalty Status: This allows SMEs and their travelers to earn points that can be redeemed for various benefits, from personal getaways to meeting rooms for business events.
- Partnership Program: This new program connects members with trusted brands that offer exclusive discounts on tech, software, car rentals, and more.
“Meeting the specific travel needs of SMEs requires a thorough understanding of their distinct challenges. Hotel companies that understand SMEs can become crucial allies and assist them in balancing limited budgets, navigating tight schedules, and managing travel planning details.”
—Kate Norris, Global Director of SME Strategy – IHG Business Edge at IHG Hotels & Resorts
Forward-Looking
Business travel is necessary for growth, relationship-building, innovation, and investment in a company’s future. Working with the right travel partner, SMEs can fuel long-term success.
IHG is among the first hotel companies to establish a program for small and midsize enterprises, recognized by Global Traveler as the Best Small-to-Midsized Business Program for six consecutive years and the Inc. Power Partner Award in the General Excellence category in 2024.
Visit IHG Business Edge for more information on how we can simplify your company’s business travel.
