Renewal Agreement Travel (RAT): What It Is and Why You Need It

When it comes to corporate travel management, companies often rely on Renewal Agreement Travel (RAT) to ensure seamless travel arrangements for their employees. RAT is essentially an agreement between a corporate travel management company and a corporate client where the two parties agree to enter into a long-term travel management relationship.

The RAT agreement is typically valid for a minimum of one year and is renewable annually. During this time, the travel management company takes care of all aspects of corporate travel, including flight bookings, hotel reservations, ground transportation, and more.

The benefits of RAT are numerous. First and foremost, it allows companies to streamline their travel management process, saving valuable time and resources. With a dedicated travel management team handling all travel arrangements, employees can focus on their work without worrying about travel logistics.

Moreover, RAT agreements can often result in cost savings for companies. By negotiating bulk rates with airlines, hotels, and other travel vendors, travel management companies can secure discounted rates for their clients. This, in turn, lowers overall travel costs for the company.

Another significant benefit of RAT is the ability to enforce travel guidelines and policies. By working closely with the travel management team, companies can ensure that all employee travel adheres to company guidelines, such as booking with preferred vendors, staying within budget limits, and complying with travel expense reporting procedures.

In conclusion, Renewal Agreement Travel (RAT) is a valuable tool for corporate travel management. By entering into a long-term travel management agreement, companies can save time and resources, lower overall travel costs, and enforce travel policies and guidelines. If your company regularly sends employees on business trips, consider working with a travel management company and exploring a RAT agreement to optimize your travel management process.