What is Travel Management Software?

Travel management software is a centralized, cloud-based platform that enables companies to manage their entire corporate travel program from a single, integrated interface. It is the technological engine of a modern travel program, designed to replace the disconnected, inefficient, and manual processes of the past—such as employees booking on various consumer websites, managers approving trips via email chains, and finance teams manually reconciling paper expense reports.

A comprehensive travel management software platform, such as the one offered by Routespring, combines multiple critical functions into one cohesive system. This integration provides companies with unprecedented visibility and control over their travel spend, while simultaneously creating a more streamlined and user-friendly experience for their employees. The software acts as the single source of truth for all travel-related activities, from the initial trip planning stage to post-trip financial analysis.

The Core Functions of Travel Management Software

A robust travel management software is built around several key pillars that work together to create a seamless end-to-end process.

1. Online Booking Tool (OBT)

This is the heart of the platform. The OBT is a user-friendly portal, designed to feel as intuitive as consumer travel websites like Expedia or Kayak, where employees can search for and book their own flights, hotels, and car rentals. However, it contains powerful corporate features that set it apart:

Policy Integration: The company's travel policy is built directly into the booking tool's logic. As an employee searches, the software automatically flags or hides options that are out-of-policy. For example, it can show a warning for a flight that is more expensive than the "lowest logical fare" or for a hotel that is above the per-diem rate for that city. This real-time guidance is crucial for preventing non-compliant spending before it happens.
Vast Inventory: The OBT aggregates content from multiple sources, including Global Distribution Systems (GDS), direct connections with airlines (NDC), and various online travel agencies and consolidators. This ensures that travelers have access to a comprehensive range of options and competitive pricing.
User Profiles: The software stores traveler profiles, which include passport details, loyalty program numbers, and seating preferences. This personalizes the booking experience and speeds up the checkout process.

2. Policy and Approval Engine

This is the control center for the travel manager. The software allows administrators to build and automate complex business rules.

Customizable Policies: Administrators can create granular policies for different groups of employees. For instance, executives may have a policy that allows for business-class travel on long-haul flights, while the general employee population is restricted to economy class.
Automated Approval Workflows: The software can automate multi-level approval workflows. A trip request can be automatically routed to an employee's direct manager for initial approval. If the trip's cost exceeds a certain threshold (e.g., $5,000), it can then be automatically escalated to a department head or the finance team for a second level of approval. This entire process is tracked within the system, creating a clear audit trail.

3. Expense Management Integration

One of the most powerful features of modern travel software is the tight integration between travel booking and expense management.

Automated Expense Creation: When a flight is booked through the platform, an expense entry for that transaction is automatically created in the system. The data—vendor, date, amount, and department code—is pre-populated, eliminating the need for the employee to manually create an expense report for these items later.
Mobile Receipt Capture: For on-trip expenses like meals and taxis, the software's mobile app allows travelers to simply snap a photo of their receipt. OCR (Optical Character Recognition) technology automatically reads the key information from the receipt and creates an expense item.
Centralized Payment Reconciliation: When the company uses a centralized payment method for bookings, the software automatically reconciles the transaction from the corporate card feed with the booking data, further reducing the administrative burden on the finance team.

4. Reporting and Analytics

By capturing all travel data in one place, the software provides powerful business intelligence tools.

Real-Time Dashboards: Travel managers and finance leaders can access dashboards that provide a live, graphical view of key metrics like total travel spend, spend vs. budget, policy compliance rates, and top travel routes and suppliers.
Custom Reporting: Users can generate detailed reports to drill down into specific areas. For example, a travel manager could run a report on "missed savings opportunities" to see how often travelers are choosing more expensive options when a compliant, cheaper alternative was available. This data is invaluable for refining policy and coaching employees.
Supplier Negotiation: The consolidated data on spending volume with specific airlines and hotel chains is a powerful tool for negotiating corporate discounts.

5. Duty of Care and Risk Management

In today's world, ensuring traveler safety is a top priority. Travel management software is a critical tool for fulfilling a company's Duty of Care.

Live Traveler Tracking: The software provides a real-time map that shows the location of all traveling employees based on their itineraries. In the event of a crisis (e.g., a natural disaster or security incident), the company can instantly identify who is in the affected area.
Risk Alerts and Communication: The platform can integrate with risk intelligence providers to send automated alerts to travelers about potential threats at their destination. It also provides a two-way communication channel for travelers to "check in" as safe or for the company to send out broadcast messages with instructions.

In summary, travel management software is an essential business application that moves corporate travel from a chaotic, decentralized process into a controlled, efficient, and strategic corporate function. It provides cost savings, enhances employee safety, and improves productivity for travelers and administrators alike.