Corporate travel is an integral part of business for most entrepreneurs. Whether you are traveling short or long distances – business trips are significant for the budget of every company. Therefore, it is understandable that business owners are considering how to reduce travel expenses when possible. Take a look at our 2024 Guide and see how you can do it.
Business Travels Bring Profits But Also Big Costs
In today’s globalization and expanding business horizons, travel has become a significant part of running a business. However, as much as they contribute to the development of your business, sometimes they can equally reduce your financial results. Of course, it is clear to you that everything costs money! Some research in recent years shows that private companies and entrepreneurs spend a large part of their budget on such things. Is that justified? Sometimes it certainly is. However, in many situations, it turned out that we do not know how to save very well – at least when it comes to travel. Although the importance of business travel is obvious, financial teams within companies are still struggling to find the right model for savings – because a lot of money is spent on such things every year. Therefore, we have tried to find some possible solutions that would reduce the headache of business owners.
Customize Your Travel Budget
Customizing travel expenses is something we need to consider – especially in the corporate world, where we must ensure that the budget is properly allocated for particular purposes. However, it often happens that we do not allocate the budget for specific trips very well. Maybe we should send three instead of six people from our team on a business trip. Also, perhaps the transport could have been by land rather than air – or the costs of representation on the trip could have been lower. All of this must be thought through and planned precisely in advance – and this is not always easy. Therefore, some experts in this field advise the use of specialized software for this purpose. Namely, the software is there to help you determine your travel budget as accurately as possible – and manage your expenses more wisely.
Limousine Or Mini Bus Rental, Etc.
Even though this doesn’t seem like a saving plan to you from the start, you’re wrong! How many times have you been in a situation to send several employees on a business trip – and then use more vehicles from your fleet, or pay for a car rental for each employee? Although it sounds almost unbelievable, such situations happen very often. You want your employees to make a good impression when coming to a meeting or negotiation. But you probably have more people on that team. If each of them comes in a separate car – it is a very expensive option to leave an impression. So why not have both? According to Torontolimorentals.com, renting luxury business vehicles, limousines, or even mini-busses, is no longer as expensive and unattainable as it seems. One such vehicle can fit your entire business team, which will leave an impression on your business partners when getting out of the vehicle. The very principle of saving is clear to you. Why go in five separate vehicles if all five people can go together in one luxury vehicle? This way, you will save time and money – and at the same time, leave an impression on the people you do business with.
Look For Alternatives
Sometimes choosing an alternative transport is a good idea to save on business travel. Namely, if it is possible, you can opt for a cheaper transport option, such as trains or buses. Also, try flights from smaller airports or using low-cost companies if possible. These options are often much cheaper, and this way you may be able to do more work while on a business trip.
Virtual Meetings Instead Of Travel
Consider whether it is necessary to travel for every business meeting you have out of town. Today, technology helps us a lot because we have the possibility of online meetings. You will admit that things like this can help you a lot in reducing business travel expenses. You can use programs like Skype or GoToMeeting which are perfect tools for business communication. These tools allow you to have conference and video meetings – and are sometimes of great importance. You will admit that it is far easier and cheaper to have a teleconference with clients or business partners in different cities than to travel.
Reduce Side Costs
When going on a business trip, most employees, and even employers themselves, sometimes lose their compass when it comes to travel expenses. That is why it is best to limit your budget before going on a business trip. Consider whether it pays more to use your vehicle, rent a car, or maybe a taxi or Uber while on the road. Also, consider whether the position of the hotel is appropriate. Do you pay more for a slightly more expensive hotel in the center where you do business, or will you pay for a cheaper hotel, but the transportation to the center will cost you more. These are all things you need to plan carefully and in advance.
Plan Business Travel Wisely
Ultimately, it all comes down to planning. However, not every plan is always a winning combination. Sometimes it happens that planning does not give the desired results in money savings because we tend to overlook some things. What is the one we most often overlook? Time frame. For example, if you are traveling on business in the middle of the summer holiday season – you can expect air tickets, but also hotel prices to be more expensive than usual. The type of rooms you book on trips also determines your spending. It is clear that apartments or single rooms are a more expensive option – so if you can, try to avoid it.
The Bottom Line
Although most of us love to travel, even on business – it can sometimes put us in an awkward situation. Traveling for business purposes should bring you some benefits. However, it often happens that after, our expenses are higher than what we got from that business trip. So try to do your best and cut the cost of business travel, and we hope that some of our suggestions will be useful to you.