Corporate travel ranks among the largest expenses that a company incurs after the salaries of the employees. Though necessary, without a robust strategy and techniques in place corporate travel becomes much more expensive than it should be. The expense spillage is one of the biggest challenges while optimizing the cost of corporate trips. Uninformed employees, poor budgeting, and unsound travel policies are some of the reasons behind these challenges. However, with careful planning and efficient coordination, the expenses can be reduced to the bare minimum. Let us explore the various tips to organize a cost-effective trip like a pro.
Manage corporate travel savings
1. Tighten up your corporate travel policy
Corporate travel policy sets the necessary perimeter around the trip rules and travel expenses without which employees can spend more than the allocated budget. While devising a travel policy, travel admins should use a segmented strategy. They can decide the different categories of employees as VIP travel is more cost-intensive than standard employee trips. Additionally, they should pay attention to details and create an all-inclusive robust travel policy adhering to the organization’s needs.
2. Have a pre-trip approval process
Without the presence of a gatekeeper to check on the details and cost of the business travel, employees can make out of the travel policy bookings. Employees booking high-cost travel is a common sight among unorganized companies. Bookings made in bulk without multiple approvals can greatly affect the trip’s ROI and budget of the company. Therefore, having a well-defined approval process can save greatly on each trip.
3. Preferred Suppliers
One of the biggest expenses of corporate trips are flights, hotels, and transportation. Planning one step can help travel admins reduce the expenses to manifolds. They can make a list of preferred suppliers as per their requirements and supplier’s booking policy. They can also contact the suppliers to negotiate further. Several suppliers provide flexible corporate rates and policies that can prove to be beneficial for organizations. These suppliers can offer regular discounts and packages that reduce the cost of travel even more.
4. Employee Training
Formulating a travel policy can set the essential rules, ensuring that the employees understand and follow the nitty gritty of fulfilling the real objectives of the policy. The employee should be aware of the various steps involved in booking and approval of any trip. They should know the exact point of contact and have the postulates of travel policy handy with them. Employees should inculcate the feeling of maintaining a high ROI integrated into their core office morales.
5. Trade-off between comfort and cost
Affordability can easily turn into poor comfort and inadequate services. Cheap travel options can reduce the morale of employees and can generate mistrust among the staff. As a result, employees can write negative reviews about the company, raise a complaint, conduct peer-to-peer gossip, develop negative feelings, and leave the company altogether. Therefore, travel managers need to maintain a good trade-off between the comfort of the employee and the cost of the trip.
6. Plan ahead
As almost all of the travel inventory has dynamic pricing, forecasting future trends and festive events can help you plan. Moreover, booking the tickets nearer to the travel date can get expensive; hence, you should plan your journey to secure the best deals. Additionally, future trip planning will help you leave enough room to tackle any change in plans and contingency.
7. Understand travel auxiliary charges
Traveling cost is not restricted only to flight bookings and hotel reservations, they go deeper into the nameless little expenses that can pile up to be a hassle. These include parking costs, meal allowances, stationary shopping, in-city transport, etc. Travel admins should be vigilant about these expenses as in group travel, combined expenses can easily shoot up beyond the ceiling. Therefore, constant monitoring and optimization are necessary to control unwanted costs.
8. Consider a travel management service
Travel management service providers offer specially crafted travel booking and management services. They work in adherence to the corporate travel policy and help in making each trip affordable. With years of service in the industry, these providers have established cordial connections with various travel suppliers. Their network proves to be beneficial for negotiations and cost reduction. Along with that, they are equipped with an expense management system, GDS access, and support staff to provide all-round management assistance.
Suggested Read: How To Choose The Best Corporate Travel Management Software
9. Reward your employees – and your business
Last but not least, corporations should reward their employees with regular incentives and appreciation. Even “a job well done” is enough to motivate a person to enjoy trips and remain efficient. Though a word of appreciation can go a long way, employees should also get monetary benefits and time to explore the destination. The concept of leisure trips should become a common norm among corporations.
Corporate travel is the necessary devil that can be required to expand business across borders. Strategically planning trips can help achieve business objectives and high ROI. Therefore, travel admins should remain at the top of their game and facilitate efficient travel.
Suggested Read: Best Corporate Travel Management Companies In Dubai
Corporate Travel Savings FAQs
How can a corporate travel policy help reduce expenses?
A well-defined corporate travel policy sets clear rules and budget limits for trips, preventing overspending by employees.
Why is a pre-trip approval process important for cost control?
It ensures that travel bookings align with the corporate travel policy and receive necessary approvals, preventing unauthorized or high-cost bookings.
How do preferred suppliers help reduce corporate travel expenses?
Preferred suppliers offer discounts and flexible rates, lowering the cost of flights, accommodations, and transportation for companies.
Why is employee training crucial for cost-effective travel?
Proper training ensures that employees understand and follow travel policies, maintain high ROI, and make informed, cost-effective choices during travel.
How can travel managers balance employee comfort and travel cost?
Balancing comfort and cost helps maintain employee morale while ensuring the budget of the company remains under control.
