Companies are looking for more practical ways to save money on business travel. Corporate travel has become a strategic investment with expected returns, so it is best not to take a penny-wise approach for travel and expense management. Most businesses often overlook the costs associated with business travel, which can drain a company over time. So, the following are three proven tips to help you save money on corporate travel.
Put the Rules in Paper
First, you have to document all your business travel policies and guidelines. Having a written corporate travel policy in place is the best practice. Also, the policy should outline important information such as spending limits, preferred vendors, booking and reimbursement procedures, and other guidelines that explain about allowable expenses and non-reimbursable expenses. Educating your employees about spending policies is the first step you have to take to control travel costs.
Negotiate Vendor Discounts
Many companies simply don’t have any idea about what kind of volumes they are purchasing and what discounts they get from the vendors. Airlines, hotels, car rentals and even restaurants are open to corporate discounts. Perhaps, you can choose a group of vendors in each category and establish strategic tie-ups with them to get better deals. It is a good practice to mandate specific vendors in your policy, so find out the best vendors based on your travel frequency and employee preferences.
Using Integrated Booking Solution
Travel booking is one of the areas where you can earn huge savings when dealt the right way. Searching for a flight will give you a multitude of options, but knowing which one is the best is a big job. Employee convenience is given high priority over price, so the company will end up paying more. Integrating travel booking tools with expense report software will eliminate much of the guesswork while at the same time helps control costs. In fact, pre-trip approval feature and lowest logical fare option can control costs while assuring bookings are made as per the company’s spending policies.
Employees do not always make cost-effective business travel choices. Clear, effective policies that guide employee behavior can be the winning formula to control corporate travel costs.