Corporate travel for small businesses is as challenging and rewarding as for large organizations. Face-to-face interactions ensure stronger business relationships and increase the confidence of clients and investors. However, arranging business travel is complex because of myriad uncertainties. Controlling travel expenses is crucial to get a sound return on business travel. Small businesses may not have access to funds and resources like large enterprises. They may not have access to better discounts on transportation and accommodation because of small volumes. Many small companies leverage automated travel management solutions to save costs besides streamlining business travel. Continue reading to discover how small businesses can implement business travel efficiently.
The four pillars of efficient business travel
The feasibility of corporate travel management for small businesses depends upon the consolidation of financial information and compliance with a travel policy. Understanding the four pillars of efficient business travel is crucial for a successful business travel program.
1. Consolidation
Since business travel is among the leading expenses, finance staff must have access to the travel expenditure trends. Monitoring these trends helps the business to know the current cost efficiency of business travel. The consolidated information about travel costs is helpful for allocating budgets across departments. Incorporating a SaaS-based travel management platform improves the cost-efficiency of business travel.
2. Travel policy compliance
Effective compliance with travel policy eliminates unwanted expenses as employees know what the travel policy expects from them. Controlling the behavior of employees through an appropriate corporate travel management companies help improve travel policy compliance. Travel managers should focus on mitigating deviations from travel policy besides managing supplier costs.
3. Effective communication for better flexibility
Unlike big enterprises, practicing two-way communication between employees and top management is possible in a small business environment. Therefore, being flexible will help establish an economical and efficient business travel program. Further, unforeseen circumstances lead to changes in itineraries. Management should be flexible to allow frequent business travelers to make changes without being rigid. Also, reviewing travel policy to incorporate changes that help employees will boost their morale.
4. Travel experience
The business travel success in any organization depends upon the employee’s travel experience. Travel managers should explore ways to boost the travel experience by implementing a company’s travel policy. Allowing a self-booking facility, providing round-the-clock emergency support, and facilitating automated expense reporting are some aspects of a better travel experience. Paxes is an advanced travel management platform that supports travel policy compliance by allowing employees access to a vast database of travel suppliers.
How to manage business travel in a small business
Managing corporate travel for small businesses requires a clear purpose of travel and an understanding of who will undertake business travel besides the timing. Implementing effective expense management is crucial for small businesses to ensure that the travel expenditure does not exceed the travel budget. Create an expense strategy involving spending limits and rules for different employee levels. Decide on payment methods such as per-diem, credit cards, or corporate credit cards. Avoid asking employees to pay from their pocket and then wait for reimbursement. The ideal way is to use a prepaid card or corporate credit card to meet business travel expenses.
A clear, concise, practical, and transparent travel policy is the foundation of an effective travel program. Communicate the travel policy and sell it across employee levels. Provide easy accessibility to the travel policy for better compliance. An automated travel management program that integrates travel policy guidelines helps improve compliance. Efficient tracking and monitoring of expenses are essential to determine business travel ROI. Using a travel management platform that allows online expense reporting and generating previous data is helpful in conducting expense analysis.
Ways to book corporate travel for small businesses
There are several options to book travel for employees. Consider an option for maximum savings on flight tickets, accommodation, and local transport.
- Corporate travel agencies – Small businesses may not have a travel manager to shoulder the responsibility of travel booking. Travel agencies can provide rate negotiation services by contacting airlines, car rentals, and hotels. They have access to special discounts and can help businesses save travel costs for a certain commission.
- Travel booking sites – These websites provide online travel booking services by showing multiple inventory options. Small businesses can access cheaper rates through a user-friendly interface.
- Online booking tools – Small businesses prefer using online booking tools. Most travel booking tools provide free services and ensure control and supervision of employees booking travel through these tools.
Tips for corporate travel for small businesses
- Prefer booking connecting flights passing through the destinations for cost saving
- Explore corporate apartments for longer stays during business trips
- Use business credit cards offering reward points, airport lounge access, free hotel stays, and loyalty program benefits
- Use tax deductions on annual tax returns
Challenges of corporate travel for small businesses
- Choosing local transport modes – While using a taxi is the fastest local transport, it is also the most expensive. Public transportation may enable cost savings, but it is not convenient.
- Choosing accommodation – Shared accommodation guarantees cost savings, but employees need to compromise with safety and privacy.
- Unfamiliar environment – Geo-specific factors like language, food, and culture may pose challenges to business travelers.
- Flight disruptions – Cancelation and delays may impact business travel itineraries.
Conclusion
Managing corporate travel for small businesses can be tough because they must build everything afresh. They have to focus on cost efficiency while organizing business travel. Unlike large enterprises, small businesses may not have access to significant discounts, resulting in higher traveling costs. Adopting an automated travel management solution like Paxes empowers small businesses to access a vast inventory of travel suppliers besides access to GDS and regional LCC airlines. Small businesses can leverage advanced travel management platforms like Paxes for seamless travel policy compliance to optimize business travel.
Suggested Read: All You Need To Know About Corporate Travel Management
Corporate Travel For Small Business FAQs
What is an alternative term for small business travel?
SME travel, or Small and Medium Enterprise travel, is another term for small business travel.
Why do small businesses need business travel?
Small enterprises need to grow their sales for more business revenues
What challenges do employees face during business travel?
A few challenges of business travel include missing a flight, non-availability of a hotel room on arrival, baggage loss, illnesses, and injuries while on a business trip.
What are the attributes of an ideal travel policy for small businesses?
A travel policy should be clear, brief, well-communicated, and easily accessible.
How can small businesses benefit from implementing a corporate travel policy?
Small businesses can benefit from a corporate travel policy in several ways including cost control policy compliance, streamlined booking, negotiating power, and expense reporting.
What are the key components of a successful corporate travel policy for small businesses?
A successful corporate travel policy for small businesses should include travel booking procedures and guidelines, travel expense reimbursement and reporting procedures, preferred airlines, hotels, and car rental companies, per diem and spending limits, and approval process for travel requests.
What are the cost-saving strategies for small businesses when it comes to corporate travel?
Cost-saving strategies for small businesses in corporate travel include negotiating corporate rates, using online booking tools, encouraging advance bookings, implementing a policy to minimize business class travel, monitoring and reporting on travel expenses.
What is the process for booking and managing corporate travel for a small business?
The process typically involves travel requests, booking approvals, trip bookings, expense tracking, and trip reporting.
What tips and best practices can businesses follow when working with a corporate travel management company?
Clearly communicate, set expectations regarding cost savings, establish a strong partnership, regularly review and analyze travel data and expenses.
How do corporate travel management companies handle emergency situations or last-minute travel changes?
Corporate travel management companies rebook flights and accommodations, provide assistance with medical or security emergencies, offer alternative travel options, coordinate with local contacts and authorities, and communicate with the traveler and designated contacts of your company.
