Corporate travel costs can accumulate quite fast if you are not careful. Moreover, cutting these costs down is not as easy as one might think. Companies that have many employees are always looking for efficiency and ways to reduce traveling costs. Let’s see how to save more money on corporate travel.
Moreover, one has to consider the ongoing events. Because of the pandemic, there are certain travel restrictions, and going from one location to another is that easy in your own country, not to mention international travel.
Commercial airlines are struggling, and you have the rise of private jets that businesses or individuals rent. That’s right, private aircraft are not as luxurious as one might think, and with the help of consultant agencies like Aerospace Union, you can get an even better deal while traveling on a private jet.
In fact, a company might consider investing in a private jet itself if there is a demand for it. The initial amount of money that a company would spend on a private jet might seem like a lot, but it might pay off in the end.
Of course, it is important to emphasize how important calculating everything is so you do not make a poor decision and get a private jet that will lead to losses rather than gains. Ponder that for a bit.
Now, as for other methods to cut corporate travel expenses, there are quite a few to go through. Let’s take a look at how to save money even if there are multiple people in your company that have to travel often.
Create a Pre-Approval Process
It is good to have a system that keeps track of everyone who travels. Implementing rules and sticking to them will reduce wasted expenditure. In other words, there will be fewer errors making redundant bookings or purchasing tickets.
Automating the process should not be a problem either, thanks to all the available software. Moreover, a business can partner with a traveling agency and cooperate for even better efficiency.
Book in Advance
When you have a proper corporate travel system, it becomes easier to make bookings in advance. It is no secret that an airplane ticket or a hotel room costs more if you want to book it on the same day. Moreover, you are less likely to find an available room or a ticket if you wait for too long, meaning that advanced bookings are a good approach not just to cut costs.
Now, booking a month in advance might be a bit too much, though most businesses often have a cancel option and send you a refund in case something goes wrong. Ideally, you should book in advance when there is a week or two left. This way, you should still get a good deal and be more or less sure that the booking will be necessary.
Cut Luxury Costs
Luxury costs are more common than one might think. Sure, a lot depends on a company’s policy, but employees who take advantage of their position exist. Imagine someone having the freedom to use a company’s credit card and book first-class flights or luxurious hotels just because they can. And if there is no supervision, it is no wonder that employees will continue to get the best they can get.
It is important to have a proper system that keeps track of unnecessary expenses. Moreover, whenever someone is on corporate travel, they should have a reasonable allowance for food and transport instead of being given more money than they actually need.
Encourage Employee Productivity on the Road
Encouraging employee productivity while they are actually traveling is not necessarily an option for all businesses. There are some instances when working on the road is pretty much impossible because of no internet connection and other obstacles.
However, if there is an opportunity to do a bit of work on the way to a destination, it would be a good use of an employee’s time. Every little bit helps, and efficiency during corporate travel can be considered as a way to make the company more money.
Reward Those Who Deserve It
Some employees might be fed up not having the freedom and luxury on corporate travel, but it is part of the business. What you can do to soften the situation could be various incentives that encourage travelers to be more humble while they are on the road.
For instance, you could reward frugal employees with various perks, such as movie tickets, gym memberships, or various vouchers. While not seemingly that significant, even the smallest travel expenses add up throughout the year, particularly when there are multiple people who go on corporate travel.
Showing your appreciation for employees who put in the effort to save the company some money should be a good policy to instill in the relationship between the higher-ups and regular workers.