Companies are looking to cut back on expenditure in many areas at the moment thanks to a very precarious economic situation; one business expense, which is coming under some scrutiny, is travel. A number of companies have instigated a firm travel policy in order to monitor expenditure and this may include maximum spends on overnight stays in hotels, a limit on air travel and only arranging travel through business travel agents in order to secure the best deals.
How business travel agents can help
The purpose of using a business travel agent is to ensure that travel arrangements are efficient, so that companies do not necessarily need to reduce the amount of travelling that staff members are permitted to do. One area in which great savings can be made is advance bookings. Train and air tickets are often far cheaper if bought several weeks in advance, although this can often be difficult for companies to make use of. Meetings may only be arranged at the last minute, which can lead to additional expense. By reassessing the company’s policy on planning meetings and events, savings can be made easily on business travel. This also means that more people travelling on business could save even more money by travelling during off-peak hours and taking advantage of cheaper rates.
Saving on accommodation
It may be the case that in the past an employee has been able to book the hotel of their choice when travelling on business. For many companies this is no longer the case and employees are limited with regard to the amount they are able to spend on a room if it is to be claimed back on expenses, or they are restricted in the type of hotel that they are able to book.
Business travel agents are useful for tracking down the most cost effective accommodation options and serviced apartments can be value for money for business travellers for the facilities they provide such as small kitchens where guests can prepare their own meals rather than eat out in a restaurant.
Sustainability advantages with carefully planned travel
Companies that are seeking to improve their green credentials can tackle this issue at the same time as travel expenditure reductions by dealing with as much business as possible in the one region while staying there. It may mean more than one night in a hotel but will save a great deal of time and money if the worker does not have to travel home between meetings. If taking a flight then a rental car may be needed at the point of arrival. Business travel agents can arrange for a hybrid car to be rented and this will save the company money on the cost of fuel, particularly if more than one member of staff is travelling as the car can be shared.
Overhauling travel expenditure and developing a company travel policy need not be stressful and in the long term can lead to large savings. For many organisations this is now an essential step rather than an optional one and measures such as these can allow companies to continue without the need for cutting back in other areas of expenditure, such as staffing.
