Corporate travel expenses are an inevitable complication that must be taken into account in any business that requires employees to travel in order to further the goals of the company. But if you are not careful, those expenses can spiral out of control and you could be left haemorrhaging profits as a result.
Indeed, travel expenses are the second largest business expense for many firms and it can be difficult to control. However, by following the tips below you should be able to mitigate at least some of the cost.
Book in advance – Don’t leave it until the last minute as fares are always going to be significantly higher. Particularly when it comes to air fares and train travel, book those trips ASAP and ensure you make this a company-wide practice.
Expand your sites – Don’t just stick to one travel site out of habit. Use comparison sites such as Expedia and Kayak to find the best deals and try speaking to the airlines directly to see if they can offer a great deal.
Partner with airlines – If your employees are flying regularly then consider partnering with an airline. This way you’ll enjoy corporate discounts and your employees will also receive benefits for their personal trips.
Travel light – Stress the importance of travelling light to your employees. The more baggage the more they are going to be charged, particularly when travelling by air.
Provide per diems to your employees – Limit how much money your employees have to actually spend on transportation and you’ll probably be surprised how enterprising they can be in sorting affordable transportation and food. It might mean they’ll spend less at the hotel bar too.
Bet on digitisation – Controlling employee expenses through a prepaid card is much easier and more secure than giving them their own company credit card. Or look for a company that offers open banking solutions, which will allow you to monitor and control all of your employee spending habits from one centralised location.
Keep it simple – There’s no need for an employee to fly business class on a short flight. Tell them to stick to economy and you’ll save thousands on expenses. As for the hotels, stick to the trusty chain hotels that’ll offer great deals and discounts and will always be cheaper than independent options.
Accept free meals – Many hotels might provide free meals to business customers, particularly if there are lots of them in a large group booking. Don’t turn it down as every free meal is more dollars in your pocket.
Uber it – Nine times out of ten, a quick Uber ride will be cheaper than renting your employee a car and if you sign up for a corporate Uber account you’ll be able to manage all expenses from the app.