In recent years, businesses have learned a valuable lesson: face-to-face interactions are often indispensable. Whether it's winning new clients or managing widely dispersed teams, a whopping 86% of workers believe that business travel is crucial for success in their roles.
With this recognition in mind, organizations have wasted no time in putting their teams back on the road. The first quarter of 2022 alone witnessed more corporate travel bookings than in the entire previous year.
However, making substantial savings on business travel requires a collective effort. From finance managers aiming to rein in annual costs to travel managers navigating the intricacies of bookings, and even the weary traveler occasionally tempted to overspend in a pinch – everyone has a role to play in achieving cost-effective travel. Let's explore nine clear and practical strategies to engage your entire team in this effort.
1. Develop a Corporate Travel Policy
A well-structured corporate travel policy is a cornerstone of cost-effective business travel. It provides clear guidelines for employees, helping them stay within budget and adhere to company expectations.
While creating a corporate travel policy can be daunting, BNW Travel's customizable template simplifies the process. A robust policy should cover aspects such as approved business travel expenses, booking rules (economy vs. business class), approval processes, per diem expenses, and reimbursement procedures. Keeping policies clear, concise, and accessible is essential, and online tools can help automate approvals, making compliance easier for employees.
2. Access Better Flight Inventory
A surefire way to reduce travel expenses is by gaining access to superior flight inventory. Many businesses relying on corporate travel agents or booking platforms designed for leisure travelers are missing significant cost-saving opportunities.
To unlock these opportunities, consider adopting comprehensive travel management solutions like BNW Travel's VoyagePro. This platform integrates with hundreds of top travel networks, offering access to negotiated rates and an extensive inventory of flights, all in one place. By embracing such tools, your organization can secure better travel deals and enhance cost efficiency.
3. Ensure Compliance
Integrating corporate travel policies into the booking process and automating approval systems can significantly enhance compliance rates. BNW Travel's solutions, for instance, help organizations achieve a remarkable 95% compliance rate by establishing clear approval workflows.
While automation can streamline approvals for policy-compliant trips, it's essential to address out-of-policy travel arrangements effectively. Online booking tools can notify relevant personnel of non-compliant trips, ensuring timely intervention.
4. Monitor Travel Spending Trends
Understanding travel spending patterns is crucial for optimizing corporate travel budgets. Identify key questions such as which travelers incur the highest expenses and where savings can be made, such as reducing airport transportation costs or Wi-Fi fees.
Utilize travel booking tools that integrate with expense management solutions, automating report generation. This data-driven approach allows you to identify trends, allocate budgets more effectively, and strike a balance between cost control and traveler comfort.
5. Offer Incentives for Budget Adherenc
To engage employees in cost-cutting efforts, ensure they understand the reasons behind budget restrictions. Transparency is key, whether it's for ensuring an enjoyable company retreat or achieving other organizational goals.
Incentives can also be effective. Consider rewarding employees who stay within budget with bonuses such as team lunches or mileage points. This creative approach helps trim expenses while maintaining employee satisfaction.
6. Promote Trip Flexibility
When booking trips, there's often flexibility in travel dates, whether for client visits or office staffing. Encourage your team to explore this flexibility. When employees request new bookings, ask for three preferred arrival and departure dates, allowing them to present options upfront.
Identifying this flexibility can lead to substantial savings, potentially slashing flight and hotel costs by as much as 50%. Moreover, empowering employees to book their own travel through corporate booking tools fosters transparency and control, enabling them to optimize their schedules and expenses without a barrage of emails.
7. Explore Accommodation Alternatives
If your organization predominantly favors specific hotel chains, you may be missing out on potential savings. Exploring alternatives like Airbnb can offer cost-effective options and provide a better experience for employees on extended stays.
However, it's important to assess suitability for each business trip, as Airbnb may not always be the best choice. In cases where corporate rates or loyalty programs provide better value, explore these options or partner with travel management companies like BNW Travel, which offers an extensive range of accommodation choices and supports custom negotiated rates.
Conclusion: A Collaborative Effort for Cost Savings
Achieving cost savings on business travel is indeed a team effort. By involving all employees and adopting smart strategies, businesses can strike a balance between cost control and employee satisfaction. Remember that tools like BNW Travel's VoyagePro can be invaluable in simplifying travel management, optimizing expenses, and ensuring policy compliance. With the right approach and tools, your organization can make the most of every business-critical trip.
