W
e all love saving money on travel, but many
companies don’t have an effective and ongoing
plan to manage this major expense. Factors
like company size, industry, trip volume and employee
demographics all impact your travel policy. Whether you’re
a startup or a multimillion-dollar corporation, finding the
budget to pay for key travel opportunities can be as simple
as working with a professional travel management company
to spend more astutely.
Employees can sometimes purchase their flights,
hotels, rental cars and meals without a care in the world,
assuming the company will handle it. Managers can’t
always find time to scrutinize every line item, and they
don’t always know where to look for smart savings. Below
are a few examples of where companies miss the mark
when it comes to understanding travel expenses.
Opting for a luxury hotel over a mid-range room
Your staff may sometimes treat themselves to high-priced
luxury hotels that don’t offer added-value extras like
free breakfast and often charge extra for that business
travel basic: Wi-Fi. Mid-priced or “value” hotels usually
offer free Wi-Fi and breakfast, along with perks like
fitness centers and free parking. By negotiating rates at
value-branded properties close to frequent destinations,
you’ll save on transportation expenses too. You may also
consider allowing a maximum hotel rate, with exceptions
for expensive cities like New York and San Francisco.
Waiting until the last minute to book flights & hotels
By making travel arrangements 14 days or more prior to
travel, employees have access to significantly lower fares,
more seat availability and better hotel rates.
Always choosing the lowest car rental
rate, regardless of vendor
Approximately 40% of car-rental expenses are costs
other than the daily rate, such as surcharges, refueling
costs, energy fees, insurance, etc. It’s better to negotiate
a competitive rate program with a primary vendor that
minimizes all the “hidden costs” of car rentals and will
often provide additional perks, such as complimentary
upgrades and free days.
Always booking flights online, regardless
of the complexity of the trip — especially
if it’s an international itinerary
The value of investing in business travel can be felt in a
number of ways across your workforce. Identifying savings
opportunities starts with a deeper understanding of what
your company is spending in key areas.
Business travel expenses can pile up quickly, so a
comprehensive reporting tool becomes important when
you’re making an effort to achieve cost savings. A travel
management company can not only provide you with
data tracking, but also analyze how your company can
further reduce travel costs without sacrificing the revenue
that comes along with business travel.
COST-CUTTING CHECKLIST
F Book air in advance
The cheapest fares go first!
A minimum, 14-day advance
purchase is a good benchmark.
F Create simple
spending guidelines
Employees will follow a
reasonable policy willingly.
F Promote affordable
travel strategies
Encourage compliance while
nurturing productivity.
F Negotiate or refine your corporate
deals with hotel and car-rental chains
in your frequent destinations for the
lowest rates and reduced surcharges.
F Consolidate spending with a
travel management company to
get the most bang for your buck.
F Enroll in a “soft dollar” airline
program that can earn your
company miles to exchange for
tickets or free upgrades without
sacrificing travelers’ personal perks.
By using a skilled agent on a complex trip, a traveler could
save a significant amount of time for a slightly higher
agent fee. Also, a skilled agent may offer different routing
or issue multiple tickets, which may result in a lower fare.
Elevating the Art of Business Travel
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