Travel software & APIs Travel technology glossary

OBTOnline Booking Tool

Also called online booking toolcorporate booking toolself-booking toolSBT

Definition

An OBT (online booking tool) is self-service software that lets a company's employees book business travel, such as flights, hotels, rail and car hire, within the company's travel policy. It filters or flags options by policy, routes exceptions for approval, applies negotiated rates and passes bookings to a travel management company for ticketing and support.

What OBT means

Before online tools, business travellers phoned or emailed a travel agent for every trip. OBTs moved routine bookings to a website or app, so employees can search and book themselves while the company keeps control over cost and safety.

The defining feature is policy built into search. Company rules, such as cabin class by flight length, hotel rate caps by city, advance-booking windows and preferred airlines, decide what the traveller sees. Simpler tools hide non-compliant options; others show them with warnings and ask for a reason code. Trips outside policy go to a manager for approval before ticketing.

OBTs usually work alongside a TMC. The tool takes the booking, while the TMC issues tickets, handles changes and supports travellers on the road. Complex itineraries, groups and markets with weak content are often booked offline through TMC agents, at a higher fee than online bookings.

Content has long been the weak point. Traditional OBTs relied mainly on the GDS, so low-cost carriers outside the GDS and some NDC fares were missing or hard to compare. Newer tools add API connections to NDC airlines, aggregators and hotel suppliers. Bookings also feed expense systems and duty-of-care tools that track where travellers are.

How OBT works

A typical corporate booking runs through policy, approval and TMC fulfilment in a few minutes.

  1. Traveller signs inThe employee logs in, often through company single sign-on, and the tool loads their profile, loyalty numbers and policy group.
  2. Search with policy appliedResults from GDS, NDC and other sources are filtered or labelled by policy, with negotiated corporate fares and hotel rates highlighted.
  3. Select and justifyThe traveller picks an option; if it breaks policy, they choose a reason code or write an explanation.
  4. Approval if requiredOut-of-policy or high-cost trips are routed to an approver, often by email or mobile notification, before the booking is ticketed.
  5. TMC fulfilment and dataThe booking passes to the TMC for ticketing and quality checks, and the trip data flows to expense and duty-of-care systems.

OBT in practice

Examples of OBTs: SAP Concur Travel and Amadeus Cytric are long-established tools, and several TMCs run their own, such as Lightning by Corporate Travel Management. Newer platforms, including Navan and Spotnana, combine booking with their own content connections.

Illustrative policy: a company allows economy class on flights under six hours, caps hotels in Dubai at a set nightly rate, and requires booking at least seven days ahead. An employee books a business-class Dubai to London flight four days before departure. The OBT shows the fare with an out-of-policy label, asks for a reason, and sends it to the line manager for approval before the TMC issues the ticket.

Who uses it

Corporate travel managersEnforce travel policy, use negotiated rates and get reporting on spend and compliance across the company.
Business travellersBook routine trips themselves at any time without waiting for an agent.
Travel management companiesHandle large volumes of simple bookings online at lower cost, keeping agents for complex trips and servicing.
Finance and HR teamsReceive booking data for expense reconciliation and know where employees are for duty-of-care purposes.

Advantages and limitations

Advantages

  • Policy rules are applied at the moment of booking rather than checked afterwards.
  • Online bookings usually cost less in TMC fees than agent-assisted bookings.
  • Centralised booking data improves supplier negotiations and spend reporting.
  • Travellers can be located quickly in an emergency because every trip is recorded.

Limitations

  • Missing content, especially some low-cost carriers and NDC fares, pushes travellers to book outside the tool.
  • Self-service changes and cancellations, particularly for NDC bookings, are still limited in many tools.
  • Complex itineraries and group travel often still need an offline agent.
  • A tool tied to one TMC can make it harder to change TMC without replacing the booking tool.

Frequently asked questions about OBT

What is the difference between an OBT and a TMC?

An OBT is software; a TMC is a service company. The OBT lets employees search and book within policy, while the TMC issues tickets, manages changes, provides 24-hour support and negotiates with suppliers. Most companies use both, with the OBT handling routine trips and the TMC handling exceptions and fulfilment.

Why do employees book business travel outside the OBT?

Usually because the tool lacks the fare or hotel they want, or shows higher prices than airline sites or consumer OTAs. Research by Skift and Navan found missing inventory and better prices elsewhere were the main reasons. Gaps in low-cost carrier and NDC content are common causes.

Can an online booking tool show NDC fares?

Many can, either through a GDS that carries NDC content or through direct API connections. The quality varies: some tools do not display NDC offers next to GDS fares in a comparable way, and post-booking changes on NDC tickets may still require a TMC agent.

How do approval workflows work in an OBT?

The company sets rules for which bookings need approval, such as out-of-policy fares, international trips or costs above a threshold. When a traveller books one, the tool holds it and notifies the approver. Once approved, the booking proceeds to ticketing; if rejected or not answered in time, it is cancelled.

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Sources and further reading

  1. Navan — What is an online booking tool (OBT)?
  2. AltexSoft — Corporate online booking tools
  3. Corporate Travel Management — Online booking tools