Minimizing travel expenses can seem like a big challenge for businesses, especially when they have employees traveling to different parts of the world. But you can save a lot of money on your travel expenses if you know where to cut them down without compromising the safety of your employees.
Businesses must have a modern travel & expense management process to improve efficiency and decrease business travel expenses. It must be combined with the efforts of every stakeholder in the process, including all employees, finance and travel managers, etc.
Cost-effective methods like booking, travel reward programs, negotiation with your suppliers, etc can help you to save a lot of expenses on your business travels. Here are some tips that can help cut down business travel expenses.
- Upgrade Travel Policies
Most businesses have a corporate travel policy. Make sure that it is effective to control the expenses of all business trips. It must cover all the areas of trips including hotel bookings, transportation, meal allowances, etc. Your corporate travel policy must have clear guidelines and procedures for employees to take decisions regarding travel within the policy without creating extra expenses.
- Use Automated Processes
Try to use automated tools to minimize travel costs. Many travel and expense management tools are available to automate all your travel approval workflows. To cite an example, if the tool finds any booking which is out of the company’s travel policies, it will instantly send an email to the manager asking for approval.
- Provide Incentives If The Booking Is Cost-Effective
If an employee can find a more affordable or cost-effective option for your stay or travel, they are helping you to save money. In such cases, you may reward them by offering a share of the money they saved or a voucher. It will encourage them to continue it and also increase employee experience.
- Promote Employees To Plan Before The Trip
Last-minute flight and hotel bookings can be quite expensive. Therefore, you have to encourage your employees to plan their trip at least 10-15 days ahead. When the date of the travel is closer, the hotel and flight charges will be higher.
- Cut Down Your Hotel Costs
There will be changes in the room cost even in the same hotel. Therefore, you have to be smart enough to save on hotel rooms. Even if you allow your employees to choose their stay, make sure you give them a budget. You can also specify the type of rooms you prefer and the additional costs you are ready to bear.
- Transport And Food Allowance Must Be Realistic
If you give control of the transport and food allowance to the employees, it will help you to avoid overspending. Food allowances can be given as an overall allowance for each day. Thus, employees can decide the amount they spend on breakfast, lunch, and dinner. Ask your employee to go for the most cost-effective travel option when it comes to transportation. You can even give a petrol allowance if they choose their vehicle.