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Recipe for cutting travel costs

SAP Travel Management (TM) is a very powerful solution to manage the travel process and eventually reduce the travel related expenses. But what is TM? “Travel management or corporate travel management (CTM) is the function of managing a company’s strategic approach to travel (travel policy), the negotiations with all vendors, day-to-day operation of the corporate travel program, traveler safety & security, credit-card management and T&E data management” (wikipedia)

There are many reasons why TM is important:

  • According to JPMorgan Travel and Entertainment (T&E) is the second-largest business expense in most organizations.
  • Travel costs are rising and still there is more and more travelling in the corporate world.
  • Sustainability and risk management are high on the executives’ agenda and travelling has a huge impact on them.
  • The expectations of the travelers are growing, e-ticketing, self-service booking, mobile access to information have become the norm.

SAP TM offers some crucial benefits:

  • Cost reduction. Both direct cost (negotiation power with preferred travel suppliers) and indirect cost (shorter processing times and administrative savings.
  • Enforcement of travel policies
  • Integration with SAP ERP
  • Reliable bookings (synchronization with 3rd party booking systems, insight and analysis of travel information)
  • User-friendly software
  • Self-service available 24×7
  • Generic solution with country-specific versions
  • Legal compliance and support of the local language in 30 different countries

SAP TM supports the travel process end-to-end: the corporate travel policy can be maintained in the back-end, the travelers can maintain their own preferences, make travel plans (flight, rental, hotel, etc.), the managers can approve them, the traveler can submit expense reports, which again can be approved, credit card data can be processed, etc. Reports can be created in ECC and BW, but the nicest is of course in BusinessObjects.


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  • You should replace GDS by OBE as even SAP strategy changed sind a couple of years here to interface to OBE’s like e-Travel from Amadeus or GetThere from SABRE.

    Also the netweaver portal is not necessary to run new WebDynpro’s for ABAP!

    What is with mobile architecture – would think of many benefits for managers and travelers.

    • Hi Siegfried,

      You are right, this is old by now… It was published two years ago. Now that the new SCN is live, I could assign this blog to the Travel Mgt place, maybe that’s why you came accros it now.

      Now I would add NWBC, Travel Management On Demand, SUP, On Demand Portal, etc. just talking about some of the technologies which have risen strong recently.