13 tips to save money on business travel
Want to save money on business trips? We’ve got you covered with our 13 tips to stay within budget.
In today’s world, travel for business is an essential part of a company’s operations. More and more employees have to go on business trips to meet clients or collaborate with other teams in the company.
Corporate travel expenses often account for a non-negligible part of a company’s budget, and saving money on business travel is an important aspect of a company’s financial health. While travelers are responsible for saving money while away, so are business travel bookers and finance teams.
So, how can you save money while traveling for business? Here are 13 tips to help your company stay within budget.
Setting up a corporate travel policy is essential for controlling expenses. Establishing one is usually the responsibility of the travel manager, HR manager, legal team, or office manager. Your company’s travel policy should include all the information about:
Review the company’s business travel policy and assess whether it thoroughly covers every area of travel expenses. Your business travel policy should include a clear approval process as well as guidelines for the booking, spending, and expense procedures. This will ensure that business travelers make decisions in line with the company’s policy and that travel costs stay within each trip’s budget.
To save money on business travel, planning trips ahead of time is key. Airlines and hotels tend to increase their rates as the date approaches, so the earlier business travelers start planning, the more economical their trips will be. Encourage employees to book their flights and accommodations in advance by formalizing the latest reservation time in the company’s travel policy.
To lock in the best prices, employees should take advantage of early booking deals and avoid any last-minute fees. Booking early also has the advantage of giving employees enough time to compare offers and find the best deal.
Flexibility is key to saving money on business travel.
The first reason is that airline fares and accommodation rates often fluctuate based on demand. Monitoring fare calendars and identifying the most cost-effective options is an easy way to save money.
If there’s any chance that a business trip might be rescheduled or you want to be prudent in case of sickness, booking flights with free cancellation could be beneficial.
On top of taking advantage of lower fares, flexible travel dates (if possible) can also help business travelers benefit from promotions or discounts on flights and stays. During off-peak days or periods, hotels sometimes offer discounted rates to fill up empty rooms.
A more flexible itinerary can also help travelers catch more affordable flights. For example, booking a flight with a layover might cut down the cost compared to a direct flight, which could be a good option as long as the traveler’s wellbeing and productivity are kept in mind.
Sticking to a loyalty program can help business travelers save money on their flights. Loyalty programs are designed to reward frequent travelers with perks and benefits like:
Similar to airlines, booking the same hotel chain and/or joining a loyalty program can be beneficial for business travelers and can help your company save money on accommodations. Here are some common benefits:
Corporate booking tools are software used by companies to manage their employees’ business trips. Here’s how using a corporate booking tool can help your company save money:
Another easy way to stay within budget is to avoid parking at the airport. By excluding this possibility from your travel policy and asking business travelers to choose other modes of transportation, your company will save airport parking fees that are typically very expensive. Here are some alternatives:
If the business traveler needs a car, it’s possible to save on rentals by avoiding the agencies at the airport. Those rental companies are almost always more expensive due to added airport taxes and fees. Booking in advance is also key to saving money on rental cars. It’s also good to remember that some credit cards include insurance on rental cars, so it might not be necessary to pay extra.
One simple yet efficient way of saving a company money is to encourage employees to travel with carry-on luggage only, especially if they’re going on short trips. Most airlines charge fees for checked luggage. By traveling with carry-on luggage only, employees can both avoid extra costs and also save a lot of time. Traveling with a smaller suitcase also encourages efficient packing, since business travelers tend to overpack. Travelers also avoid the risk of their bags getting lost and needing to buy new clothes and essentials at their destination.
Without checked luggage, travelers also have more flexibility with their flight options, since they can choose to fly with budget airlines that offer lower fares and limited baggage allowance.
Your employees should always check the airline’s carry-on guidelines before packing to make sure their suitcase fits the dimensions requirements, which may vary by airline.
By using a travel reward credit card, employees who travel often for business can:
Choose a travel credit card that matches your company’s needs for business travel.
Employees on business trips tend to spend more than they realize on food. Eating out while on a business trip can be particularly tricky since they don’t know which places are expensive tourist traps and which ones serve delicious local food. Here are some strategies employees can use to save on food while traveling:
You can always include an allowance for one or two fancy restaurants for business meals with clients in your travel policy.
The most simple way to save on business travel is by having employees track how much they spend in real-time. Whether it’s by asking them to use an expense tracking app or a feature in a travel booking tool, you can get a detailed overview of where they’re spending money, which makes it easier to identify how they can stick to pre-approved budgets. This can help you identify where they’re overspending and save on corporate travel.
Tips for saving once the trip is over
The VAT refund is often an overlooked way of getting some money back from employees’ business trips. In a lot of countries, you may be able to count things such as flight tickets, hotel rooms, transportation fees, or business meals as business travel expenses if your company is registered to pay VAT. Employees should make sure all expenses your company will reclaim VAT for are business-related.
To help your employees collect their receipts and claim VAT refunds, use an app or software, which could also help you deal with the different country regulations for VAT.
Businesses can save on travel before, during, and after trips by following some simple strategies and recommendations. While travelers are responsible for how they spend the company budget, business travel bookers and finance teams must establish clear guidelines for business travel.
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