Managing Travel Expenses in Small Budget

It is important to plan to leverage your corporate travel program to get the most out of your budget. It is not enough to tell travelers to choose the lowest logical airfare. These are some of the factors that you should consider when planning and evaluating your travel program.

A well-written and widely distributed travel policy is the cornerstone of any successful travel program. I am constantly amazed at how many companies have an outdated or poorly designed travel policy. A well-written policy is easy to find. You can easily find one online. It is only necessary that the document be edited to reflect corporate culture and distributed within the company to ensure everyone understands it and agrees to it. For best travelinfo check the site having all the possible flight schedules.

It is a good idea for everyone to sign a copy the company’s travel policy. This will ensure that all employees are aware of it and can understand it. It is a good idea to have everyone sign a copy of this travel policy regardless of whether they are traveling.

They might be asked to travel or change their positions within the company. It doesn’t have to be complicated or long. The best travel policies I’ve ever seen were just a few pages in length.

Companies that do not centralize their travel program pay the price in lost expense reduction and reduced efficiency. Companies that don’t centralize their travel program fear that travelers will be required to do things they do not want. They also fear that hiring a Travel Manager would mean that travel management is difficult.

These are legitimate concerns, but they don’t have to be the norm in all cases. You are not limiting travelers’ flexibility by requiring them to book centrally. It is possible to centralize travel, but still allow travelers to book their travel on their own through a provider you trust or with an agency of your choosing.

You can assign someone to oversee travel so that you have one point of contact for all travel questions, both internal and external. A full-time travel manager is not necessary if your company travels for less than $1million annually. These cases can be handled by the finance department, human resource, or an executive assistant. Let’s take a look at some of the benefits that centralizing travel can bring.

You gain in many important ways when you centralize your travel with one agency. Travelers will be able to contact one agency for any problems, and they will also have one place to turn to for all their travel needs. This eliminates the need to consolidate travel reports from multiple sources. You will reap the benefits of economies of scale by bringing together travel.

You can get more value from your travel suppliers if you can compare total travel between different divisions and locations. This will enable you to get more value from airline soft dollars programs. You’ll get more free tickets, upgrades, and a larger percentage discount from our preferred airline. Also, your hotel and car rates will be better negotiated.

You will see a decrease in fulfillment costs as the travel agency will often offer discounts for higher volumes of travel.

This addendum is to the previous element. It calls for centralizing travel through one agency. While this is essential, it doesn’t mean that travelers should be required to book online or call the agency directly. You are achieving several goals by giving travelers the choice of either. Online bookings are cheaper than traditional methods of booking. You give travelers control. This increases morale and improves the chances of high adoption rates.

You also leave open the possibility of using your online booking engine to book less complicated itineraries. Senior executives, frequent travellers, and more complex itineraries can be booked directly with travel agents that can provide a higher level service and offer a better overall experience.

Although most travel plans revolve around air costs, there are other areas you can look into to save money. You can also look for negotiated rates at hotels or discounts on car rentals with preferred suppliers.

Your travel agency may already be able to get discounted rates from consortia affiliations or agency car contracts. You should also look into other areas. If ground transport is an issue, suppliers will often offer discounts and direct billing options. To know the travel-index it is important to see all the possible destinations along with departure sites.

Direct billing arrangements with hotels or car rental agencies is a great way for accounting staff to save time and increase efficiency.

Today, most major airlines offer both hard and soft dollar discounts in return for loyalty to their products.

In return for market share, if your travel program exceeds $1 million, you may be eligible to receive a discount on the lowest fares offered by your chosen carrier. If you have secondary carriers or your travel volume is lower than the minimum required by an airline, soft dollar programs can be used to get free tickets, upgrades and traveler status enhancements.

These programs are very low volume but require little effort. You may have to search for them yourself or ask Baker Travel or another agency to help you find them.

Sometimes hotel volume is overlooked, but it shouldn’t be. You can negotiate rates directly with the hotel or through your travel agent. In exchange for a minimum stay/night commitment, individual hotels in close proximity to corporate locations may negotiate reduced rates. You are likely to get discounts of up to 50% when you use a travel agency to book thousands of hotels around the world.

It is easy to sign rental car contracts and they require very little commitment from the company. Look for a partner with airport locations and a history of providing excellent customer service.

It is possible to save as much as 5-10% and also get frequent renter memberships for your employees. This will increase their efficiency and morale. Direct billing agreements can be entered into at the same moment. This can make it easier for your accountants and travelers to do their jobs.

Groups of friends or colleagues traveling together will receive a discount on their fares and hotel rates when they travel together.

These meetings contracts can offer airfare discounts up to 2-10%. If you have enough passengers on one airline, you might be able negotiate for free tickets at contract completion. The minimum number of travelers required is normally 10 people traveling to the same destination at the same time. You should check with your airline to see if they have any higher minimums. The minimum number of rooms required to get a discount on hotel rates is 10.

These discounts may range from 10% to much higher depending on seasonal variations and occupancy rates.

To be successful, well-managed travel programs need to be monitored and properly leveraged. Get timely, customized reports that are tailored to your needs.

You will be better able to meet your contract obligations, reduce costs, and identify future savings opportunities by receiving regular reports on provider behavior and traveler behavior.

A well-managed travel program will consider the comfort and productivity needs of its travelers. Comfortable travelers can concentrate on the main priorities that will help your business grow. Travelers who are happy perform better. Ask your travel agency if they can upgrade travelers to a preferred airline. Consider purchasing airport club passes in blocks so that you can use them strategically on long, complex itineraries.

There are many rewards that can be given to travelers who have done the hard and sometimes exhausting job of traveling. These rewards can be used to build loyalty and increase productivity.

Contact me if you’d like to know more about how to leverage your travel program for your business and your executives. I’m happy to help you.

Leave a comment

Your email address will not be published. Required fields are marked *