The True Cost of Unmanaged Travel for Investment Firms

Yet, one operational area too often left to chance is business travel. Many investment firms allow partners, associates, and analysts to book their own travel without a managed program in place. On the surface, this might appear flexible and efficient, but the hidden financial, operational, and reputational costs can be substantial.

Let’s unpack the true cost of unmanaged travel for investment firms.

💸 1. Financial Leakage and Missed Savings
Without a managed travel program, firms miss out on negotiated corporate rates, loyalty benefits, and bundled services that specialist travel management companies (TMCs) secure. Individual bookings through public platforms often lack transparency, and expense claims may include premium fares booked at the last minute.

The result?

Inflated airfare, hotel, and ground transport costs.

Missed opportunities for supplier discounts and rebates.

Increased out-of-policy bookings driving up the average trip cost.

According to GBTA, firms can overspend by up to 24% on unmanaged travel compared to companies with structured programs.

📊 2. Lack of Visibility and Data for Decision-Making
Investment firms thrive on data-driven decisions — yet unmanaged travel means limited visibility over spend, traveller activity, and supplier performance. Without consolidated reporting, CFOs and operations teams struggle to:

Track total travel spend against budgets.

Identify cost-saving opportunities.

Monitor policy compliance and traveller safety.

This lack of control can lead to budget overruns, fragmented supplier relationships, and operational inefficiencies.

⚠️ 3. Duty of Care and Risk Exposure
In today’s unpredictable global landscape — with geopolitical tensions, health risks, and weather disruptions — firms have a legal and moral responsibility to know where their employees are when travelling for business.

Without a centralised system:

It’s difficult to track travellers in real-time.

Emergency response times increase in the event of incidents.

The firm is exposed to potential liability if duty of care obligations aren’t met.

For investment firms managing high-value deals in global markets, the reputational risk of poorly handled travel disruptions is simply too high.

📉 4. Loss of Productivity
Time is a premium asset for dealmakers. Unmanaged travel requires employees to research, book, amend, and expense their own trips — diverting focus from client work and investment opportunities.

A managed program reduces the admin burden by:

Providing fast, policy-compliant booking options.

Offering 24/7 support for itinerary changes.

Streamlining expenses and approvals.

When seconds matter in deal execution, lost productivity from inefficient travel processes has a tangible commercial cost.

💡 5. Missed Competitive Advantages
Top-performing investment firms use every operational advantage to outperform their peers. A strategically managed travel program offers:

Better negotiation leverage with airlines and hotel groups.

Preferential access to last-minute availability in key financial hubs.

Consistency of service for partners and clients.

This infrastructure strengthens a firm’s ability to move quickly, confidently, and professionally — especially in high-pressure, cross-border deal environments.

📌 In Summary

For investment firms, unmanaged travel isn’t just a logistical oversight — it’s a hidden drain on profit margins, productivity, and corporate reputation.

Implementing a tailored, managed travel solution delivers:

Cost control

Data-driven oversight

Enhanced duty of care

Operational efficiency

A competitive edge in dealmaking

In a market where operational precision underpins investment performance, managing your travel program is no longer optional — it’s a strategic imperative.

Want to assess the true cost of your firm’s current travel habits?
We can help. Get in touch for a no-obligation travel audit and recommendations tailored to your firm.

Happy & Safe Travels!

Posted on 11 July 2025 by VMR Travel