There are a few tried and tested guidelines to control business travel expenses while enhancing the employee travel experience. These tips will help travel managers or business owners to keep in budget and better manage the bottom line.
- Use a travel policy to guide employees
Set up an approval system for business trips. Also establish travel limits, like what class of ticket or car rental to book, create hotel price caps, and allowance limits to take control of expenses that can quickly get out of control. Then create a travel policy that sets out booking guidelines and details the various spend limits to ensure everyone is on the same page. This is also strong way to make sure that the trip is not only organised correctly, but to create a baseline for establishing what was crossed and exactly how.
- Teach cost-conscious behaviour
To achieve your goals, you need the help of your travellers. Use meetings to discuss cost-conscious behaviour with your team and to advise them on staying within budget. Support this with the travel policy that is easily accessible and follow this up by getting your message across with targeted messaging that reduces costs.
- Shop Smart
Airlines, accommodation, and transport suppliers have struggled to keep up with the rapid increase in demand post Covid, creating fierce competition for availability, which means higher prices if you don’t plan ahead.
Make sure you get the balance between cost and quality right, so you maximise traveller productivity. For example, consider a smarter approach such as:
- Negotiating benefits like free ticket alterations. Imagine your top salesperson securing a game-changing deal but needing an extra day to close it. Having the flexibility to adjust their flight without incurring fees can be truly priceless.
- Booking in advance and be flexible. Early morning and late afternoon flights are most popular, so travelling outside of these times means you can often find better fares.
- Weighing up the cost of a cheaper hotel that’s further away from where you need to be vs. the cost of transport – it may cost more in time than money.
- Watch the extra’s
Incidental costs like airport and hotel parking, wifi, and dining out can quickly blow the budget, so make sure you address these too. Many airlines also charge extra for specific seat allocations or sell snacks onboard which also adds to the cost of travel. Consider setting a daily limit on food and beverage expenses
- Take advantage of loyalty programs
Joining reward programs with your preferred airlines, hotels and car rental companies is an easy way to save money. Most suppliers offer the opportunity to earn loyalty points when you travel, which can be redeemed to reduce the cost of future trips.
- Leverage travel technology to your benefit
Savings of up to 20% can be realised through process efficiencies and the effective use of new technologies and booking processes. Choose a Travel Management Partner who offers technology solutions that will streamline the process. For example:
- Automating the approval process allows you to stop rogue spend before the trip takes place.
- Implementing an Online Booking Tools (OBT) allows you to compare options in real-time, providing side-by-side quotes that empower you to make informed choices. Worried about safety standards with a particular airline? Exclude them from your options with a few clicks, and you’re on your way.
- Technologies like price assurance will continue to check for lower fares post-booking. This ensures that you get the best deal, even if you’re not a seasoned travel-booking pro.
- Keep track of booking behaviour to improve savings
Keeping track of your spend allows you to make pro-active decisions to improve traveller behaviour and savings. Think of it as the Sherlock Holmes of business travel. Accurate and timely business reporting empowers you to run various analyses, helping you identify opportunities to save money and make more strategic decisions.
Whether you’re a seasoned corporate travel budget manager or just diving into the world of managing travel expenses, Rennies BCD Travel has your back. We save our clients an average of 20% every year and know how to help your corporate travel budget work smarter, not harder.
