6 key things to make your business travel cost effective
Corporate travel is on the rise as companies have started viewing business travel as a non-discretionary spend. As per FCM’s State of the Market survey, organisations have understood the importance of in-person meetings and the impact on the bottom line.
That said, inflation is also on the rise with airfares and hotel rooms prices soaring. As employees will be travelling more, travel managers will have to balance travel budgets and business traveller experience, without compromising on quality and goal of business trips.
In this blog, we share quick tips that will help you to maximise business travel cost savings and enhance corporate travel management:
1. Tighten your travel policy
There is more to a business travel policy than mere booking and reimbursement rules. A well-rounded business travel management policy also accounts for well-being of business travellers, sustainability, preferred airlines and hotels, and ground transport suppliers, cancellation charges, etc. A solid travel policy sets the tone of your corporate travel programme, and it should address every aspect of business travel.
2. Review supplier agreements:
When was the last time you reviewed your supplier contracts and renegotiated? To stay ahead in the ever-evolving market, it’s essential to re-look at agreements and check for validity periods of contracts, negotiate outside of peak seasons for hotels, and consolidate vendors where possible. In this view, by partnering with a global travel management company (TMC), you can access to network of suppliers across the world that can help maximise savings.
3. Monitor spends and compliance
Despite your efforts to ensure the traveller is booking within policy, some bookings can still go astray, with business travellers booking through their preferred channel or choice of supplier. Many organisations face this issue where out of policy bookings lead to higher air, hotel, and car rentals expenses. Here, business travel expense management, keeping track of travel spend, upcoming trips and ensuring travel policy are a few ways to maximise savings. If you’ve partnered with a TMC, they can help you with visibility—if not, we do. With FCM Platform, we provide real-time insights and detailed reports, you can monitor where your money is being spent, double-check compliance, and make informed decisions to optimise your budget.
4. Bundle up
Combining flights, hotels, and car rentals and keeping an eye on ancillary charges allows you to streamline your travel process and maximise savings. So, the next time your travellers start booking his business trip, you can ask them to book services together or make it a must-do in the company's travel policy, remember: flights + hotel + car hire = more savings, less hassle. Happy travels.
5. Use travel tech to encourage shift
By leveraging TMC tech tools like FCM Platform, you can guide business travellers to make informed decisions, nudging them towards options that will help your travel programme save travel costs. For instance, FCM Platform informs the traveller, at the time of booking, if his/her chosen options are out of policy. In addition, you can also track whether the business trip bookings in policy compliance, time taken to book after trip approval through Power BI.
6. Partner with a travel management company
When it comes to cost-effective travel programmes, it’s best to leave it to the experts. Through a dedicated TMC, you can achieve greater results. By leveraging efficiency, expertise, and industry insights, your organisation can achieve significant cost savings, improved travel experiences and employee satisfaction. Plus, you can offload the burden of travel management and expenses, allowing you to focus on other critical aspects of your business. Moreover, TMCs offer negotiated rates and with global reach and local support, you can expect the best for your organisation.
Remember: Just because you are travelling more doesn’t mean you need a bigger travel budget or increase business travel expenses. Contact us today and leave no stone unturned to maximise savings.