Terri Ramsey Beavers Business travel expense is unavoidable but hacking at the monster expense can also help increase the profitability of the business. Saving money from business travel will need a lot of effort from the employees and not only from the top management. Here are a few useful ways to get the team on board and to save money on business travel.
Encourage flight flexibility
When videoconferencing just does not cut it, you need to send employees to a different country. You need to maintain flexibility in the dates of the event, irrespective of whether the employee is visiting a client or taking a new office. When going on a business trip, Joy Bray from Chi Chi LLC (https://chichillc.com/) advises using an expert travel agency to make booking flights, lodging, and transportation as easy as possible. The travel agency will be able to know if there is any wiggle room and there generally is. It means saving as much as 50% on hotels and flights.
Get access to better flight inventory
An absolute best way to cut the cost of travel is to get a better flight inventory. There are many ways you can use to get the best flight and save on the extra money. When you leave it up to the travel agency, they can give you the best rates for flight bookings. They have an inventory in one place which they tap into when looking for your flight.
Be specific when it comes to reimbursement
Whenever the employees submit expense reports, you need to ask for details. Not enough detail visibility can encourage out-of-control spending. If the traveler submits a credit card receipt from the hotel stay, you need to ask for details about added costs like room service and meals. Set a clear requirement for expense report before you reimburse your employee for the same. This will reduce hidden purchases and will keep business travel on a budget.
Offer incentives for staying on budget
If you want to cut travel costs, it is important to bring down the pain for your employees. You need to communicate with your employees why you want to cut down on travel costs and how it will help the company. There will be a different reason for every company and increasing transparency with the employees will only lead to long term benefits. If this does not help, introduce incentives for staying within the budget. Give bonuses like mileage points or team lunches to those who stay within the budget. You can set individual budgets or department budgets and ask the managers to look into the same.
Travel costs are complex but they are an inevitable part of every business. There can be last-minute decisions and overarching policies but you need to think right and identify how each employee can help. When you manage to save even a small amount every time you take a trip, it will turn out to be a significant amount for the business.