Saving on Business Travel
Travel and entertainment can be a big line item in your cost centre, especially if you have clients all over the country. Finding ways to reduce these expenses can help you improve your profit margin and keep you in the green. So here are some money-saving tips to help you reduce your business travel expenses.
If you decide a face-to-face meeting is going to be worth the expense then a clever way to reduce your overall cost is to bundle your out-of-town meetings, so that you only have to take one trip. Avoid flying to a city for just one meeting. Create a travel calendar and find a few “anchors” in each main city you travel to. Then schedule a series of meetings once a quarter in each key market. This strategy also helps maximize the value when you’re travelling for a tradeshow or training.
Share And Share Alike
Reduce the cost of your travel expenses by using alternate travel services, like Uber or Airbnb. Many younger employees are comfortable with these types of services and may even prefer them. Plus, many of the larger companies in the sharing economy may help you save even more when you set up a corporate account with them.
When you have employees travelling for you, it may be difficult to get them to save above and beyond your travel policy and per diem. But services like Rocketrip can help promote a lean attitude by providing an estimate of what the trip should cost, and then splitting any savings in the actual costs with the employee.
Hotels With Perks
If you travel to the same cities all the time, consider negotiating a corporate rate at a hotel or hotel chain for you and your team. Be sure your hotel choice includes free wifi, free breakfast and a reliable shuttle to and from the airport to help minimize costs even further.
Minimize Last Minute
Sometimes you can’t help but make a last minute trip, but this should be avoided whenever possible because the premium you pay is high. Have employees get written permission by their supervisor when they make arrangements less than 14 days out. Be sure employees know this policy and know to book refundable tickets if they’re unsure of their plans.
Business travel may be a necessary evil to your balance sheet, but with a lean mindset you can keep trucking.