“He who buys what he does not need, steals from himself.” (Swedish Proverb)

Many think of corporate travel expenses as being a non-negotiable, and expensive part of doing business. The thing is, it is possible to cut back on travel expenses without cutting out the necessary requirements and little luxuries. Here are our four top tips for saving money on your corporate travel account.

1. Plan ahead 

Most corporate travel is not an emergency. Whether you need to pitch to new clients in London, attend a conference in Los Angeles or visit a supplier in China, proper planning can save a great deal of money. All travel expenses increase the closer you get to the departure date. Simply looking at the necessary travel for the year ahead, scheduling it in advance and booking comfortably ahead of time will save you a significant amount. Flights are generally at their cheapest between 30 and 60 days before departure.

Taking this one step further, you can also make sure you aren’t travelling during peak times. If you need to visit your clients every second month, make sure your trips don’t coincide with large conferences or entertainment events as these can drive up hotel costs.

For domestic travel it makes sense to try and fly on Tuesday, Wednesday or Thursday, as flights are generally cheaper than on other days. Early morning or early afternoon flights (before 3 PM) are not only cheaper, but also tend to have fewer delays and cancellations – which means there’s less chance of additional accommodation or car hire charges.

2. Set up a travel policy

In order to effectively plan ahead and book all that’s needed, you need to implement a company-wide travel policy. This policy should cover all aspects of travel including:

• The booking process for accommodation, flights, transfers, vehicle rentals and everything else.
• Expenses and meal allowances.
• The approval and reimbursement process.

Making sure everyone is on the same page when it comes to travel means there are no unnecessary or unexpected expenses. As your accountants, we can help you to construct a travel policy that aligns with your budget and cash flow.

3. Be as loyal as possible

Hotels and airlines offer loyalty programs that reward their most frequent travellers with perks like airport lounges and dining discounts, but they also offer important benefits for the business. Airline loyalty members often get to cancel their bookings or change dates at a reduced fee, and the frequent flyer miles and rewards can add up to other free travel benefits. Hotels are much more forgiving on loyalty members when it comes to late and early check-ins and room upgrades. And they typically offer a guaranteed discount on their room rates.

4. Use an agent

Travel agents are basically a free (or at least very cheap) service for the people who use them. Often the prices are the same whether you book yourself or do it through an agency because the agent commissions are already built into the prices of the rooms, flights and car rentals. Booking with an agent can save your HR, receptionist or PA valuable hours that could be put into something more productive.

Agents are already experts so paying them a small service fee (if required) to keep them on your books will allow them to search further for the best possible prices and benefits using their back-end travel systems. This may not save you money on flights as the airlines are generally pretty transparent, but it can make a big difference on insurance, car rental and accommodation. Agents are also much more likely to be able to wangle last-minute refunds or changes.

If your company is really big (or if you and your staff travel a lot) it may make sense to allow a corporate travel specialist to manage all of your travel requirements.

Bon voyage!

Corporate travel can be a very good investment – but there’s no reason to pay more than you should. Speak to us if you want any help trimming your business travel costs.

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