Planning corporate travel is one of the trickiest jobs in the world. From budgeting the trip to ensuring the safety of employees, travel admins have to pay attention to numerous details. One such detail that often gets ignored is the hidden travel costs. While the obvious costs such as flight tickets, hotel tariffs, and car rentals get priority, hidden travel costs can be a nuisance and increase the overall budget of the trip significantly. These costs can be high or low depending upon the importance and terms and conditions of the travel suppliers. Let us cover some of the critical hidden costs on business travel that you must be aware of at all times.
Top lesser-known hidden costs on business travel
1. Transaction fees
Most of the payments made online or via card generally have transaction fees involved. It can further add up with the convenience charges if the supplier or service provider is offering extra services. The charges can rise as you are going to make international transactions. Hence, when calculating the budget for the trip you should be vigilant about these charges for a better estimation.
2. Cancellation and change fees
Considered among the most frustrating charges, cancellation fees are highly dependent upon the travel supplier you choose. They are usually kept high to avoid last-minute cancellations and are sometimes dynamic. It is always best to plan your trip details better, read the terms and conditions fully before booking, and establish connections with the suppliers for low cancellation fees.
3. Meals and incidentals
While meals are an expected part of travel, additional expenses for snacks, beverages, and incidentals are not given any value. However, when you are out for lunch or snacks, most of us know that beverages cost extra. The charges of beverages are generally high especially when they are alcoholic. You should therefore ensure to include beverage charges along with the meal so that no discrepancy remains. Employees can also purchase snacks in the evening or while working on their travel which should also be considered in meal charges.
4. Transportation charges
Airport transfers can be costly if not planned vigilantly. Additionally, airport parking cost is generally kept high. Travel admins should estimate the transfer costs along with any other ground transportation being used by the employee to conduct business for the company. You can use various transport calculators for a specific country to get a better estimate of the cost.
5. Wi-Fi and communication charges
As a standard service hotels and airports provide wifi services. However, if your employee is traveling for work online connectivity is critical. Therefore, you should provide allowances for wifi and communication. Additionally, some of the airports also offer paid internet services that can add to the overall cost of the trip. Further, international roaming charges for mobile phones can be substantial.
6. Laundry and dry cleaning
While on a business trip, professional attire plays a crucial role in winning over clients. Many business travelers may need laundry or dry-cleaning services, especially for longer stays. It’s important to consider these costs, as they can vary depending on the destination and the hotel’s pricing.
7. Travel insurance
Though not entirely hidden, the importance of travel insurance is sometimes underestimated. Unexpected events such as medical emergencies, trip cancellations, or lost baggage can lead to additional costs. Comprehensive travel insurance is essential to ensure that your employees are covered adequately.
Suggested Read: What Are The Benefits Of Getting Dubai Travel Insurance
8. Opportunity costs
When employees are away on business, there might be opportunity costs associated with their absence from the office. Consider the potential loss of productivity or missed opportunities for new business or projects that could have been undertaken if the employee had been present.
9. Lost productivity
Apart from opportunity costs, the actual loss of productivity during travel should also be considered. Time spent in transit, jet lag, and adjusting to a new environment can affect an employee’s efficiency. This can impact the overall cost of the trip.
10. Conference and event fees
If the purpose of the trip is to attend a conference or event, there might be registration fees, booth costs, or other related expenses. These fees can sometimes be overlooked but are essential to include in the overall budget.
11. Equipment and technology
Employees may require specific equipment or technology while on a business trip, such as laptops, projectors, or specialized software. Ensuring they have the necessary tools can contribute to a successful trip but may incur additional costs.
Corporate travel admins should always be prepared with an accurate and optimized budget. This will help the management plan their operations and get the most out of the trip. Hidden costs on business travel can be a problem in planning trips if not given the correct importance. Therefore, travel admins should ensure proper training of the employees and appropriate channels to calculate trip budgets including hidden travel costs.
Suggested Read: Detailed Calculations Of UAE Business Travel Costs
Hidden Costs On Business Travel FAQs
What are hidden travel costs in corporate travel?
Hidden travel costs refer to expenses often overlooked during corporate trip planning, such as transaction fees, cancellation charges, and other less obvious expenditures.
Why should one be concerned about transaction fees in corporate travel?
Transaction fees, incurred during online or card payments, can accumulate, especially for international transactions and impact the overall budgeting.
How can one minimize cancellation and change fees during business travel?
To minimize frustration and costs related to cancellation fees, it is advisable to plan trip details carefully and read terms and conditions before booking.
