There are some simple tips to cut business travel costs without hurting your company’s image. Before you decide how to cut business travel costs, consider these tips to make the process more efficient and less stressful. First, don’t nickel and dime your way to a cheaper travel budget. It’s not worth your employee’s time to haggle about the rental car price or the restaurant menu. Instead, try to prioritize your business travel expenses by department head or relevant employees.
Dos and Don’ts
Cutting business travel costs may be easier said than done, but there are certain dos and don’ts you should keep in mind. After all, it’s the cost of business travel that will make or break your company. But by following the dos and don’ts, you can cut your business travel costs without sacrificing the quality of your business travel. These tips should be followed by all business travelers and are easy to implement.
When deciding what expenses should be cut, ask relevant employees to prioritize them. While cutting business travel costs is possible, you shouldn’t compromise your company’s image by limiting the number of meals and drinks employees can eat. You also don’t want your employees to nickel and dime their way to a lower travel budget. And don’t let employees agonize over rental car prices because that won’t help your company’s image.
Consider outsourcing your business travel to a professional. Using a consulting firm can help you identify where you can cut costs. Using a third-party travel agency can help you identify opportunities to cut costs in your business travel, including airfare and accommodations. Ultimately, you’ll save money by cutting back on business travel costs if you hire a company with a proven track record of efficiency.
When it comes to accommodation, booking in advance is key to ensuring that you get the best possible deal. The same goes for transportation. Try to avoid last-minute bookings and encourage employees to book their own accommodations. If you’re traveling with your team, don’t let your employees share hotel rooms – it’s uncomfortable and can cost you money. Besides, people need time alone to recharge and get some rest. For that, you need to put the people in the center of your business.
Ways to reduce business travel costs
Booking ahead of time is one way to cut business travel costs. According to a study by Concur, businesses who book eight days before departure save $148 per ticket. When booking early, employees will also be less likely to travel on an unfavorable day. When determining how to reduce business travel costs, it’s crucial to look at various options, including low-cost airlines and alternative transportation. These tips should provide valuable insight on how to reduce business travel costs and maximize travel dollars.
A good way to cut business travel costs is to prioritize travel expenses. The travel budgets of relevant employees should be assigned to departments. While cutting costs will improve profitability, you should avoid hurting your company’s image by not providing adequate service to clients. For example, if your clients require you to meet with them in a nice restaurant, your business should cover the bill. On the other hand, you shouldn’t nickel-and-dime your way to a lower travel budget. You also don’t want your employees agonizing over car rental prices.
Another way to cut down on business travel costs is to find accommodation that will foster a productive work environment. Ideally, you want to stay in a central location near clients and events, with easy access to restaurants. Make sure the location balances comfort, convenience, and affordability. The wrong location or an unfavorable hotel can affect employee performance. On the other hand, staying in a five-star luxury suite isn’t cost-effective. However, it can be a good option if you know how to book in advance.
A simple, yet effective way to reduce business travel costs is to adopt a travel policy that covers every aspect of your business trips. Be sure to develop a travel policy that clearly defines how you will reimburse each employee and prevent out-of-policy bookings. It’s not easy to implement a travel policy that covers all expenses, so make sure your employees understand and adhere to it. This way, you can avoid paying for travel that doesn’t make sense.
Using frequent flyer miles
Many business firms use the mileage redemption strategy to reduce air travel costs. They accumulate frequent flyer miles and apply them to upcoming business trips to receive “free” tickets. This paper presents the framework for mileage redemption and investigates the best ways to use frequent flyer miles. It can be implemented by any company using spreadsheet software. The benefits of using this strategy are clear. This paper outlines some best practices to reduce travel costs and maximize frequent flyer miles.
Another example of a company using the frequent flyer program to cut travel costs is Unisys, a computer corporation. The company offers cash incentives for employees to take advantage of the program. Unisys has saved half a million dollars in travel costs and avoided outrage from frequent flyers. This program could serve as a model for other companies, especially those trying to control their costs.
Despite the fact that frequent flyer miles are not tax deductible, they can be a valuable tool to reduce business travel expenses. Business travelers can also use frequent flyer miles to buy plane tickets. The cost of purchasing airline tickets with frequent flyer miles is zero-dollar. However, if these airline tickets are not used for business purposes, frequent flyer miles are not tax-deductible. If you’re using frequent flyer miles to reduce business travel expenses, you should first consider if they qualify as business travel expenses.
Another way to cut business travel costs is to use frequent flyer miles for auto rental. The rewards programs for airlines often offer discounts and early sales. In some cases, you can even get free tickets or discounted rates if you travel often. This can result in substantial savings for a company. You should consult with your corporate travel agent to understand which airline rewards program is right for your business. You can even use the mileage from your business credit cards to pay for a rental car!
Using hotel points
A study conducted by American Express found that nearly 70 percent of business travelers change their travel plans each year due to rising travel costs. Instead of taking fewer trips, they choose to travel shorter distances. Using hotel points or miles to make travel cheaper is an efficient way to cut travel costs and provide more flexibility. However, some businesses should be aware of the terms and conditions of using hotel points. Read on to learn more about the benefits of using hotel points and miles for business travel.
Hotels offer discounts and guaranteed low prices when people join their loyalty programs. Usually, these programs require booking directly. Companies can also make employees use public transportation to save money. Using public transportation instead of airport taxis can cut business travel costs by as much as 50 percent. Using hotel loyalty programs and branded credit cards to advance rewards are two ways to save money on business travel. There are many benefits to using hotel points and miles to cut business travel costs.
For the most significant benefits of using hotel points for business travel, you should join a loyalty program of a major hotel chain. These companies have different programs, which allow you to earn points and redeem them for benefits like free breakfast, late check-out, and extra bonus points. However, if you frequently book hotel rooms, joining a loyalty program may be the way to go. So, it is worth it.
Typically, employees keep frequent flyer miles and hotel points for personal use. By using these programs, your company can claim those points for business travel by offering employees discounts or free flights. This way, you can save money on the costs of employee travel, while boosting employee morale in the process. If you don’t mind taking the hit on employee morale, it may be a worthwhile investment for your company.
Using public transportation
Taking public transportation is a smart way to cut business travel costs. Instead of hiring a cab, consider using public transportation. Not only is it cheaper, but public transportation gives you the opportunity to experience a new city and meet different people. Check out bus and train schedules to find the best options for your company. And when you’re out and about, consider using small businesses to reduce your expenses.