Managing travel costs isn't just about the money—it's about making intelligent, strategic choices that lead to efficiency gains. Think of it as an opportunity to get more bang for your buck, keeping your accountants and travelers happy.
In this guide, we'll take you through innovative strategies to help your SME effectively manage and reduce business travel expenses. From leveraging the latest tech to crafting the perfect travel policy, these tips will help you unlock serious savings and streamline your travel operations.
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Key strategies to save money on business travel
Dive into the key tactics to better utilize your corporate travel budget and save big.
1. Book in advance
You know the saying, "The early bird gets the worm"? Well, in business travel, the early bird gets the best deals. Booking at the last minute is like gambling with your company's budget; trust us, the house always wins.
Nearly a quarter of business travelers (22%) overspend on travel simply because they wait too long to book. Office managers and assistants often get swamped with urgent tasks, leaving travel plans until the last minute when prices are sky-high.
But booking in advance avoids these high costs, unlocking opportunities for significant savings.
Let's look at A-Gas, a world leader in refrigerants and lifecycle management. In 2017, they typically booked just 15 days ahead of travel. Our team at Corporate Traveler devised a strategy to get their booking earlier, aiming for 23 days in 2018 and 30 days in 2019. The results? They hit their targets and saved 10% each year.
Booking in advance gave A-Gas cheaper flight options and allowed us to negotiate better rates with airlines and hotels. For example, we arranged a tier match with Virgin for travelers who typically flew with British Airways, ensuring they received the same perks and benefits. By 2021, A-Gas expanded its travel program globally with our help, continuing to rake in savings.
The takeaway? Planning isn't just smart—it's essential. Early booking means lower prices, better choices, and more opportunities to maximize your travel budget. So, set reminders, get bookings in early, and watch the savings roll in.
2. Use travel management companies (TMCs)
Missed connections, last-minute changes, and endless booking hassles can make you want to pull your hair out.
But imagine having a travel expert at your fingertips who takes the guesswork out of booking corporate flights, hotels, and transportation. This would leave you free to focus on the important stuff—like nailing that big presentation or closing a crucial deal.
TMCs can get you better rates on flights and hotels, provide comprehensive services, and ensure all travel is policy-compliant. Plus, they offer 24/7 support, so you've got someone to call when things go sideways at 3 AM.
While travel management company fees might seem like an extra expense, the savings and peace of mind they bring can far outweigh the costs.
3. Leverage a corporate travel platform
Why should business travel be an exception in the age of smartphones and smart everything? Leveraging the right tech, from booking tools to expense management software, can save you time, money, and headaches.
These tools streamline the entire process, from booking flights and hotels to managing and tracking expenses. They provide real-time data and analytics, ensure policy compliance, and offer seamless integrations with your existing systems.
- Take Melon, a global digital platform that lets you search and book flights with just a few clicks. Melon gives you insider access to exclusive rates and deals, ensuring you always get the best prices. Plus, Melon's comprehensive reporting tools help you track travel spend and maintain full policy compliance, making decision-making easier and more informed.
- Ramp is another excellent tool to have in your arsenal. Corporate Traveler integrates seamlessly with Ramp to serve its US customers. It automates travel expense management, making submitting receipts effortless.
With the right technology, you can automate mundane tasks, reduce errors, and closely monitor expenses.
4. Negotiate corporate rates
The magic of negotiating corporate rates with airlines and hotels is getting VIP treatment every time you travel without the VIP price tag. You want to go beyond just scoring corporate travel discounts to forging relationships that bring long-term savings.
Start by analyzing your travel data. Are your employees frequently flying to the same destinations or staying at the same hotel chains?
Use this data to your advantage. Approach airlines and hotels, and present the volume of business your company offers. Show them why giving you a discount is beneficial for both sides.
Building a strong relationship with your travel providers is critical. It's not just a one-time negotiation but an ongoing partnership. When you book consistently with the same airlines or hotels, they recognize your loyalty and might offer better rates or perks over time.
Regularly communicating and being transparent about your travel needs helps maintain these connections. Here are some tips for successful negotiations and potential savings:
- Highlight travel volume: Showcase the consistent business you bring to airlines and hotels to negotiate bulk rates.
- Utilize loyalty programs: Use frequent flyer miles and hotel loyalty points for extra perks and discounts.
- Bundle services: Negotiate package deals that include flights, hotels, and car rentals for additional savings.
- Establish long-term partnerships: Build strong relationships with preferred travel providers to secure better rates over time.
- Be flexible: Offer flexibility in your travel plans to negotiate lower rates during off-peak times.
- Leverage a TMC: Ultimately, using the scale and buying power of a TMC is your biggest leverage in negotiating corporate rates.
Next time you're planning a business trip, channel your inner negotiator. By strategically negotiating corporate hotel rates, you can significantly reduce your accommodation expenses while ensuring your employees stay at comfortable and convenient locations.
5. Encourage flexible travel dates
Alright, let's talk flexibility. You know how life can throw you curveballs? Well, business travel is no different. Embracing flexibility in your travel plans can save your budget.
Say your company needs to book a flight for an important meeting, but you're not locked into a specific date. This is where the magic happens. Shifting your travel dates by just a day or two can unlock hidden savings waiting to be grabbed.
Flexible tickets allow you to change your travel dates, times, or even destinations without those pesky fees that airlines love to charge. This is a lifesaver for business travelers who often make last-minute changes. Are you all set for a Friday departure, but your client needs to reschedule? No worries! With a flexible ticket, you can adjust your plans at no extra cost.
Statistics show that departing mid-week can save you significant cash. A simple shift from Friday to Wednesday can save around $35 on average for flights. The same goes for hotels—opt for a Thursday check-in rather than a Friday or Saturday, and you're pocketing an extra $60.
These small changes add up, leaving more room in your budget for other important things, like a fancy dinner with a potential client. A little flexibility goes a long way in keeping your travel budget tight.
6. Implement a comprehensive corporate travel policy
A corporate travel policy is the cornerstone of efficient corporate travel planning, ensuring all travel activities align with company policies and budgets. It's a comprehensive guide for your road warriors, covering everything from booking flights to handling expenses. A solid travel policy answers all the essential questions:
- How, where, and when to book: Sets clear guidelines for the booking process.
- Approved technology for travel management: Specifies the tools and platforms to use.
- Preferred suppliers: Names the go-to airlines, hotels, and car rentals.
- Approval processes: Details the steps for getting those tricky out-of-policy bookings greenlit.
- Trip extensions and personal travel: Outlines the dos and don'ts of combining business with pleasure.
- Expenses and reimbursements: Defines what's covered and how to get your money back.
- Travel insurance and emergency contacts: Ensures everyone knows what to do if things go south.
Creating a travel policy doesn't have to be a headache.
To make things easier, check out our handy travel policy template builder. This tool will guide you step-by-step, helping you craft a custom policy that fits your company perfectly. With clear guidelines, your team will travel smarter, spend wiser, and stay safer.
Create a corporate travel policy [Free template]
Follow along with our corporate travel policy template as you read.
Since no two companies have identical travel needs, this guide will help you tailor a policy that fits your organization while adapting to an ever-changing travel landscape.
7. Monitor and analyze business travel expenses
Keeping a close eye on travel expenses is essential. Regular tracking and reviewing business travel costs can prevent budget overruns, identify cost-saving opportunities, and ensure that every dollar spent is accounted for. It's about maintaining financial health and transparency, ultimately leading to more intelligent business decisions.
Why is this so important?
Without a clear view of your travel spend, you could be wasting money on unnecessary expenses or missing out on potential savings. By regularly monitoring travel expenses, you can spot trends, adjust policies, and make informed decisions that benefit your bottom line.
So, how can you do this effectively?
The key lies in using the right tools for expense tracking, and that’s where our travel platform, Melon, shines. Melon allows you to analyze your spend and save across the board—all from anywhere, on any device. Whether you're in the US, UK, or Canada, Melon is tailored to make life easier.
Melon’s smart policy tool lets you set and forget, guiding your travelers on where and what they can spend. Your personalized company dashboard adapts to changing market conditions, saving time for you and your bookers. With real-time data and insights, reporting becomes a breeze.
For US users, there's an added advantage—Melon integrates seamlessly with Ramp, a powerful expense management tool.
Ramp tracks every dollar spent in real-time, eliminating the hassle of lost receipts and outdated expense reports.
Imagine your top sales executive traveling across the country to close deals. With Ramp, they can snap photos of receipts and submit them instantly. Meanwhile, your finance team back at the office enjoys real-time access to all travel expenses, making end-of-month reconciliations effortless.
By leveraging tools like Melon and Ramp, you ensure that every travel dollar is spent wisely, ultimately keeping your budget in check and freeing up your team to focus on what they do best—driving business success.
Try our travel savings calculator
Ready to see the savings you've been missing?
Run your numbers through our savings calculator and find out how much more you could be keeping in your travel budget.
8. Utilize loyalty programs
Who doesn't love perks? Loyalty programs can be a goldmine for saving money and scoring sweet extras on business trips. Imagine earning miles for every dollar your company spends on flights.
Loyalty programs aren't only about saving a few bucks. They're about enhancing the travel experience with perks that make business trips more comfortable and enjoyable. So, next time you book a flight, think about the rewards you could earn and start making those trips work harder for you.
9. Encourage the use of public transportation
Public transit isn't just for tourists with maps. For business travelers, the savings and benefits of using public or shared transport can be huge. Plus, it's a win for the planet.
First off, think about the cost benefits:
- Using public transit can significantly slash your expenses. No more sky-high gas prices or costly car rentals. It's a budget-friendly option perfect for businesses looking to trim costs.
- For those commuting up to 12 miles, you could save about $1,600 per year by sharing rides. Go further, and the savings climb to $4,300. When you add it all up, the combined savings for multiple employees can be substantial—up to $81,000.
The environmental benefits are nothing to sneeze at:
- US public transit saves around 37 million metric tons of carbon dioxide annually. That's equivalent to the emissions from the electricity used by nearly 5 million households. Just imagine the impact if more businesses encouraged their employees to take public transport.
Imagine a scenario where your team frequently travels around town for meetings. Instead of everyone driving separately and dealing with parking fees, they could carpool using a ride-sharing service. This would cut down on travel expenses, encourage teamwork, and reduce the hassle of finding parking.
By encouraging public and shared transportation, your company can significantly cut costs while contributing to a greener planet. Now that's a win-win!
Let's make those savings happen!
So there you have it—your guide to slashing those business travel expenses while keeping your team happy and productive. Let's recap the main strategies we covered:
- Book in advance to secure the best deals by planning ahead.
- Use TMCs to get expert help, better rates, and 24/7 support.
- Leverage technology using booking tools and expense management software to streamline the process.
- Negotiate corporate rates by establishing relationships with airlines and hotels to get VIP treatment without VIP prices.
- Encourage flexible travel dates to save money by being flexible with your travel.
- Implement a comprehensive travel policy with clear guidelines to manage travel efficiently.
- Track every dollar spent to make informed decisions.
- Utilize loyalty programs by taking advantage of rewards and perks to enhance your travel experience.
- Encourage the use of public transportation to cut costs and contribute to a greener planet.
Ready to slash those travel costs?
Proactive travel expense management isn't just about saving a few bucks here and there—it's about creating a sustainable travel program that benefits your company in the long run. Implementing these strategies will optimize your travel budget and enhance your team's travel experience, boosting productivity and satisfaction.
Remember, every dollar saved on travel is a dollar that can be reinvested into growing your business. So, start implementing these strategies today, and watch your savings soar. Happy travels!
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