Every day in the United States, about 1.3 million business trips are taken. As a business owner, you know the importance of corporate travel. It enables you to meet clients, expand your professional network, monitor off-site projects, and, heck, have some pleasure as well.
However, the cost of business travel can quickly add up if you and your employees are always on the road. If these expenses are giving you sleepless nights, it’s time to look for ways to reduce them.
Fortunately, you don’t have to go looking. We’re here with the solutions you need.
Read on for effective strategies to cut corporate travel expenses.
Develop a Corporate Travel Policy
While large corporations typically have a corporate travel policy, it’s not uncommon to find small businesses without any such policy. If your employees are taking business trips on a whim, it’s easy to waste a lot of money.
A corporate travel policy will help save money because it fleshes out who can take business trips, the means of transportation to use for various trips, how the money will be spent during the trip, and whatnot.
Without any travel rules in your business, for example, an employee can go for first-class air tickets and put up in pricey hotels, just because it’s the company picking up the tab. But with a policy that requires everyone to travel on a budget, the expenses won’t spiral out of control.
Implement a Trip-Approval Process
Given the freedom, everyone would jump on the nearest plane and take a business trip. Who can resist the urge to visit new places, even if it’s for work?
The price of such freedom is so steep even the richest corporations would struggle to pay. This is why you need to implement a trip-approval procedure.
Ask employees to make requests for business trips, vet those requests (or hire someone to do it), and ensure only trips that add value to the business are approved and funded.
Make Advance Bookings
There will always be trips taken on short notice, but most require advance planning. Use the opportunity to make advance bookings.
If you’ve taken personal flights, you certainly know that air tickets get more expensive if you’re booking closer to the date of travel. Some days are also busier than others, which raises the pricing of most travel-related services.
By booking a couple of weeks earlier, you’ll save your business some good change.
Use Spend Management Tools
In a small business with a few employees, it’s easier to keep track of business travel costs. But as the business grows and expands its workforce, expense tracking gets more complicated. Picture a scenario where 10 employees are on business trips on any given work day…
How do you stay on top of these travel expenses, let alone reduce them?
This is where travel spend management software comes in handy. The right software will enable you to develop travel budgets, set expense limits, and track all spending.
Ensure you have a good grasp of your corporate travel management software needs before searching for the various solutions on the market.
Corporate Travel Shouldn’t Cost an Arm and a Leg
Corporate travel can be an indispensable part of your business. It shouldn’t put a dent in your bottom lines, though. Be sure to use these tips to reduce the business expenses related to travel.
Enjoy your trips and don’t forget to bookmark our blog and visit often for more advice.