Open Bookings vs. Managed Travel: What Corporate Travel Leaders Should Know

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Economic uncertainty is roiling financial markets, prompting fuzzy leisure travel forecasts for the remainder of 2025. Meanwhile, the outlook for corporate travel remains cautiously optimistic.

According to a 2025 GBTA survey, 71% of travel buyers said their company’s business travel bookings increased last year. In addition, nearly half (48%) said their company will take more business trips this year than it did last year, compared to only 12% who believe their company will take fewer trips.

Amid fluidity in the broader business environment, corporate travel buyers and financial leaders are under pressure to incorporate thoughtful and intentional policies that minimize costs, maximize flexibility, and optimize business travel’s role in driving company growth.

This article explores the differences between open bookings and managed travel to help companies understand the best ways to provide optimal pricing, employee support, timely expensing, and automated reporting.

Not all corporate travel booking strategies are created equal. And that’s a good thing. Travel booking requires a delicate balance for businesses of all sizes, and it can look different from department to department and even from trip to trip.

Pressures on the corporate travel landscape have “added new layers of complexity,” said Dan Skaggs, chief product officer for TravelBank. “Employee expectations are becoming more demanding, and there are now more self-serve options available. Therefore, it’s essential for travel and finance leaders to revisit their programs to ensure their tools, policies, and platforms are modern, flexible, and aligned with today’s workforce needs.”

Many organizations, especially small- and medium-sized businesses with limited resources, prefer an open booking model, which allows employees to choose whichever flights and accommodations they prefer.

Employees tend to like these programs because “they may not be required to get pre-trip approvals or be limited by pre-approved vendors,” Skaggs said. “Some employees enjoy open bookings as they can select accommodations based on comfort, convenience, and personal loyalty programs.” And in some cases, employees may find lower base fares than those available through traditional managed programs.

Though it may satisfy some employee preferences and ease administrative burdens on the front end, an unmanaged, open booking model is not always the best solution from a business standpoint. While open booking may offer greater flexibility, it also introduces several challenges for management and finance teams:

• Tracking and reconciling expenses become more complex when bookings happen outside a centralized system, which can lead to frustration for business travelers and administrators alike.

• When employees book with unapproved vendors, exceed budget limits, or ignore company travel guidelines, companies may be at an increased risk of policy non-compliance.

• Open booking often sacrifices discounted rates that managed travel platforms secure by leveraging larger volumes of travel spend, ultimately resulting in lost cost-saving opportunities.

• When travel plans change or flights (inevitably!) get delayed, employees have to troubleshoot on their own.

When compared with open booking policies, managed travel programs offer a range of benefits that simplify and enhance employees' travel experience while reducing costs, increasing scale, and providing more policy oversight and employee services.

Managed travel platforms are introducing smarter booking tools, personalized recommendations, conversational booking assistants, automated itineraries, and real-time expense tracking, all of which streamline the travel experience for employees and administrators.

Furthermore, some platforms combine travel, expense, and card management into an all-in-one, easy-to-use system. Employees can use a centralized corporate card to handle bookings and simplify payments. And some platforms even reward employees for booking below budget.

With automated systems in place, travelers no longer need to manually submit expense reports. They can minimize out-of-pocket costs and be reimbursed faster.

There are cost savings on the company side in this arrangement as well.

Managed platforms can guide travelers to book within travel policy and automate approval requirements for out-of-policy requests. When travel plans need to be reassigned, it’s much easier to cancel, modify, or transfer bookings without losing track of costs or responsibilities. Plus, “a managed travel platform helps reduce the risk of fraud by automating and verifying expense claims before they’re reimbursed,” Skaggs said.

By deploying a platform mandated to incorporate new technologies, tools, and services, companies can outsource the ever-growing challenge of understanding the latest advancements in the industry, allowing them to stay focused on what really matters: financial health and employee well-being.

This is especially the case if they’ve integrated an all-in-one travel, card, and expense platform, which streamlines processes and increases visibility across a company’s financial operations. Such a platform also unlocks access to negotiated rates and group discounts that are typically reserved for larger enterprises. Finance teams benefit from real-time insights into spending patterns, enabling more accurate forecasting and budget optimization.

“As the business grows, the platform scales alongside it, eliminating the need for costly system overhauls,” said Skaggs. “By capturing more spend on corporate cards and reducing leakage, companies can also improve working capital and take advantage of financial incentives such as rebates and rewards programs. These efficiencies can significantly impact cash flow and long-term financial health.”

There’s also the question of duty of care for travelers and travel risk management (TRM).

“A free and open booking policy limits a company’s visibility and control as it comes to duty of care,” said Skaggs. “Without centralized tracking, it becomes difficult to locate employees or provide timely support during disruptions or emergencies. Additionally, without dedicated support, last-minute cancellations or logistical issues may go unsolved.”

However, with managed travel platforms, itinerary information and real-time location tracking allow companies to quickly identify and assist travelers. In addition, professional agents are available 24/7 for support in case of delays, cancellations, or emergencies, which means a company employee isn’t constantly on call to handle issues to which they may not know how to respond.

In the end, Skaggs said, managed travel is a win for small- to mid-sized businesses. It centralizes functions to reduce administrative overhead, simplify travel management, and minimize the inefficiencies that come with juggling multiple systems — all while making travel easier and less stressful for employees.

Wondering how CFOs are responding to T&E trends? TravelBank analyzed hundreds of thousands of booking and expense reports, saw three major shifts in 2025 T&E trends, and asked CFOs to weigh in.

This content was created collaboratively by TravelBank and Skift’s branded content studio, SkiftX.