Good Travel
Management CEO, Kevin Harrison, shares his insights into reducing
business travel expenses as the cost of flights and accommodation remain hight.
A recent report
by Business Travel News Europe has revealed the forecasted business travel
expenses are set to continue to rise next year, though not as sharply as the
sudden surge in demand and cost witnessed in 2022.
Average ticket
prices for flights, accommodation prices, daily car rental costs and even the
average daily cost per attendee for meetings and events are all expected to
rise into 2024. With heightened costs, businesses will need to set up
projections to set realistic travel budgets.
While there will
inevitably be a cost increase, there are several ways businesses can
strategically reduce their travel expenses.
Time it right
Seasonal peaks,
particularly during the summer months and winter holidays, can inflate travel
expenses by 50 percent
depending on your destination. Flights, accommodation, and transportation also
cost more during high-travel months or school holiday weeks. Where possible,
optimal scheduling during late winter, early spring or late autumn can prevent
high costs.
Be tactical
Negotiating rates
and making use of reward schemes is also key. You can negotiate corporate rates
with both chains and more boutique options, especially if your company
frequently stays at these places. A travel management company can take the lead
on this if you use one.
If you use a
travel booking platform with an integrated expense policy, be sure to leverage
its broad content coverage for complex itineraries.
Understanding
taxes
Savings can also
be made in decreasing a business’s taxable profits, which, in turn, could lower
the tax bill for the year. Eligible expenses for business tax reductions
usually include transport or fuel costs, hotel accommodation and food and
drink. Plus, other extras associated with travel like bridge and road tolls and
parking fees.
Because of this,
it’s important to communicate with staff the importance of maintaining precise
records and following company expense policies. However, two-thirds of
employees admit they haven’t even read their company’s travel and
expense policy.
There’s no ‘I’ in
team
Although business
travellers may think they’re helping cut costs by sourcing a great flight or
hotel deal on their own, they might still get in trouble for being out of
policy if their companies require them to book through an official booking tool
or with a designated airline or hotel.
To avoid this,
company policies regarding business travel should be clearly communicated and
widely accessible in company-wide HR documentation, as well as saved in an obvious
place on the company server or intranet.
