When it comes to corporate travels, employees often end up spending more than they do on personal trips, after all, if someone will eventually be reimbursed there’s no need to go out of their way to choose the most affordable option. Why choose coach when you can fly business instead? A survey by J.P. Morgan shows that these missed saving opportunities eventually add up, causing the corporate travel expense budget to be the second largest operating expense of a corporation. Fortunately, there are several ways to cut down on your travel expenses:
Book Flights Strategically
Business trips often require companies to fly their employees to meetings and conferences. That said, airline tickets can be quite expensive, so it’s important to be smart about the ones you book. You can save up significantly just by being flexible on your travels dates and airline choice. If you are planning a trip way in advance, you can also look out for airfare promotions and discounted rates to greatly reduce your corporate travel expense. You can also consider turning to a corporate travel agency to help you secure great deals for your tickets.
Set a Realistic Allowance
Setting a realistic allowance for your accommodation, food, and transport can help you budget better. While allowing your business travellers to choose where they want to stay can ensure that they are comfortable throughout the trip, hotels have varying room rates. It’s best to set a budget threshold or to specify the room type that they can choose to help keep your expenses in check. If you’re planning a trip for a large group, you can enquire about the hotel’s percentage discount. This gives you up to 12% off the best available rates for their rooms. You must book at least 30 rooms in the same hotel annually in order to qualify, though.
The opposite works for food and transport. Giving your employees control over these two elements can actually help reduce overspending. Consider setting an overall allowance per day, allowing the employee to choose how much they would spend on breakfast, lunch, and dinner. For their transportation, simply advise them to choose the most cost-effective method and factor in journey times then reimburse them afterward.
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