Virtual Payments and Non Employee Travel Bookings
Whether it is expense visibility and control, complexity of payment processes, data security concerns or just simply risks of overspending; Non-employee travel has long been a struggle for most companies. With an increasing number of companies resuming in-person meetings and events, and the trajectory of business travel poised for a significant uptick (business travel spending is forecasted to soar to $1.4 trillion by 2024), it is becoming increasingly important for companies to look at how to solve some of the issues they may be experiencing when it comes to non-employee bookings. Some are unaware that non-employee travel can be done using virtual credit cards for both online and offline bookings. In this blog we will detail some of the issues that companies are having with traditional methods of payment, the transformative potential of virtual credit cards, and how this all relates to non-employee bookings.
What is non-employee travel?
Let’s start off with the basics: non-employee travel, also known as guest travel, non-profiled travel, or non-staff travel, encompasses arrangements made for individuals who are not permanent employees of a company or organization but require travel for business-related purposes. These individuals may include subcontractors, consultants, researchers, clients, vendors, partners, students, or other external stakeholders.
One of the largest industries that relies on non-employee travel is the entertainment industry. Entertainment companies often involve a wide array of non-employees who may need to travel on behalf of the company, including talent and production crews. This can include actors and actresses engaged for specific projects, directors and producers overseeing creative endeavors, as well as musicians and bands participating in concerts and recording sessions.
Additionally, writers and screenwriters may travel for research purposes or to collaborate with production teams. Crew members, such as cinematographers and sound engineers, are often required to travel for location shoots and technical support. Publicists and agents manage promotional activities and media engagements, often traveling for press events and client meetings. Marketing teams attend industry events and trade shows to promote entertainment products, while distributors and exhibitors travel to film markets and conferences. Consultants and advisors offer specialized expertise, necessitating travel for consulting engagements and workshops. Legal and financial representatives handle business affairs, often traveling for negotiations and contract signings.
These non-employee individuals are integral to the success of entertainment projects and contribute significantly to the industry's operations through their diverse travel requirements. Each plays a crucial role in ensuring that the company's projects are executed smoothly and that promotional efforts effectively reach their intended audiences.
In other industries, subcontractors and consultants are often engaged by companies for specialized services or expertise, necessitating travel for meetings, training sessions, or project work. Academic institutions and research organizations frequently host visiting researchers, scholars, or scientists who travel to conduct research, attend conferences, or collaborate with colleagues. Businesses often host clients or vendors for meetings, presentations, or negotiations, with visits aimed at showcasing products, discussing project progress, or finalizing contracts. Educational institutions and companies offering internship programs may arrange travel for students or interns participating in educational or work-related experiences, including attending conferences or gaining practical experience at different locations.
Additionally, companies may sponsor employees or external speakers to attend conferences, workshops, or industry events relevant to their field, where they may participate in panel discussions, deliver presentations, or network with industry peers. Board members, executives, or senior leaders from partner organizations may also require travel for board meetings, strategy sessions, or business development activities, playing a crucial role in decision-making and shaping the direction of the company.
Non-employee arrangements typically involve booking flights, accommodations, ground transportation, and other logistical details to ensure a smooth and productive experience for the guests. However, managing non-employee effectively requires addressing various challenges, such as payment processing, expense tracking, compliance, data security, administrative tasks, and cost management, as discussed earlier. By understanding the diverse needs and purposes of non-employee, companies can develop tailored strategies and solutions to optimize the guest experience, enhance collaboration, and achieve their business objectives.
Common issues for travel managers when it comes to non-employee bookings
Complex Booking Processes: Non-employee travel often involves dealing with various stakeholders, such as clients, partners, or contractors, each with different preferences and requirements. Managing these diverse needs can lead to complex booking processes.
Expense Management: Tracking and managing expenses for non-employee travel requires efficient systems to handle reimbursement, invoicing, and auditing effectively. Unlike employees who may have standardized expense reporting processes, non-employee travelers may have different reimbursement requirements, billing procedures, and payment methods, adding layers of complexity to expense management. Integrating non-employee travel expenses into financial reporting and accounting systems is complex, requiring seamless integration with existing processes and systems. The timing of expense reimbursement can be also critical, especially for contractors or partners who rely on timely payments to maintain cash flow. Delays in processing expenses can lead to dissatisfaction among non-employee travelers and strain relationships with external partners.
Compliance and Policy Enforcement: Ensuring compliance with company travel policies and regulations can be challenging when managing non-employee travel. Travel managers need to ensure that non-employees adhere to the same standards as employees, which requires effective enforcement mechanisms.
Data Security and Privacy: Managing sensitive personal and financial information of non-employee travelers requires strict adherence to data security and privacy regulations. Travel managers must implement secure systems and protocols to protect confidential information and prevent data breaches.
Scalability and Flexibility: As non-employee travel volume fluctuates, travel managers need scalable and flexible solutions to accommodate changing demands efficiently. Implementing adaptable processes and technologies can help streamline operations and enhance agility in managing non-employee travel.
Virtual credit cards and non-employee booking
Virtual credit cards offer a multifaceted solution for mitigating the challenges associated with non-employee booking. These digital payment methods enhance control and security by allowing travel managers to set specific spending limits, validity periods, and usage restrictions tailored to each booking, reducing the risk of fraud or unauthorized transactions. Streamlining the payment process, virtual cards provide a centralized method for managing expenses, simplifying expense reconciliation and reducing administrative burden. With robust tracking and reporting capabilities, travel managers gain real-time visibility into transactions, enabling better expense management, budget control, and financial reporting.
Moreover, virtual credit cards facilitate compliance enforcement by enforcing company travel policies through predefined spending limits and usage restrictions, ensuring adherence to regulations and reducing non-compliant bookings. Their flexibility and scalability enable travel managers to generate cards as needed, adjust spending limits on the fly, and deactivate cards instantly, providing greater agility in managing non-employee bookings. Virtual credit cards offer a comprehensive solution, enhancing control, security, efficiency, and compliance in managing expenses for non-employee travel.
Did you know that Grasp has the perfect solution to help solve your isues with non-employee travel?
