Whether visiting clients, attending conferences, or meeting with team members, traveling is a great way to expand your network and grow your business.
However, it can also be quite expensive. According to a pre-pandemic survey, the average business cost was USD$ 1,293, with airfare, lodging, and food demanding the highest charges.
Being financially responsible is essential when planning corporate trips. In this article, we’ll provide tips to help you save money on your next business trip.
1. Develop A Corporate Travel Policy
One of the best ways to manage travel expenses is by developing a corporate travel policy. This policy should outline the guidelines for handling travel expenses and provide your employees with clear instructions on what is and isn’t allowed when traveling for business. Here are some essential details to include in your policy:
- Set maximum allowable amounts for each flight, car rental, and other transportation expenses. You should also specify whether employees can book first class, business class, or economy flights.
- The approval process for booking accommodations and other on-site expenses
- Whether employees will be provided with a business credit card
- Rules regarding reimbursement if employees use their own money
A well-defined travel policy ensures that every stakeholder in your company knows what expenses are covered and what falls outside the budget. Doing so ensures everyone is on the same page.
2. Mix Business And Leisure
If you’ve been planning for a dream vacation overseas but don’t have enough savings, wait until a corporate-sponsored trip to your chosen shows up. You could extend your stay and explore the destination after a busy business trip since the company pays for your roundtrip ticket.
Find out whether you can receive free or discounted hotels, flights, and activities for staying a few days more. These savings can help you take a companion, friend, or relative with you and make your business trip more enjoyable.
Adding a few extra days for leisure can help you recharge and improve your work-life balance. Just make sure to understand your corporate travel policy and pay personal travel expenses incurred from your pocket.
3. Reduce Airfare
Flights are one of the most expensive things for business travelers. So, cutting various air travel costs can help you save on your total business travel expenses. Below are some tips to help you save money on flight costs.
- Book a cheaper flight: Airlines charge different prices, so it’s essential to compare prices with at least three providers and select the most affordable option. You can find prices on their websites or third-party sites.
- Subscribe to flight deals: Learn about the latest flight deals, airfare promotions, and discounted rates by subscribing to different mailing lists. Some offers may apply to specific destinations, while others have a wider reach.
- Avoid excess baggage: Airlines charge fees for extra weight. Cut costs by traveling light and taking carry-on luggage.
- Book mid-week flights: Airlines may charge high prices during weekends or Fridays and Mondays due to the high number of travelers. In that case, you can save money by booking a midweek flight.
- Fly with one airline: Most airlines offer rewards and points which you can redeem for free flights, hotel stays, or entrance to VIP lounges. If you frequently travel for business, this can save you money in the long run.
Besides airfare tickets, hotel fees comprise the bulk of business travel costs. But you can minimize your spending through the tips in the next section.
4. Minimize Accommodation Charges
The type of accommodation you choose during business trips can make a difference to your budget. For example, resorts and five-star hotels may charge customers additional fees and amenity costs. Consider lodging establishments such as Airbnb or business hotels offering better deals.
Here are other ways to save money on lodging:
- Book hotel rooms in advance: Some hotels may offer good deals such as cheaper room rates or a free night for advanced bookings.
- Sign up for hotel reward programs: Hotel loyalty programs reward visitors for spending money on their property. If you’re a frequent business traveler and love staying at a particular hotel, consider signing up for their loyalty programs.
- Consider the location: Hotels, motels, Airbnb’s, and other lodgings near the airport or in the city tend to be more expensive. Explore accommodation options on the outskirts.
These tips can save money on your next business trip without compromising comfort or convenience. Similarly, you don’t have to frequent expensive restaurants to enjoy the best of local food.
5. Avoid Unnecessary Food Expenses
Food can be a significant expense during business trips, but there are ways to save money while enjoying delicious meals. Here’s how to enjoy affordable local cuisine during business trips.
- Look for local restaurants: Eating at local restaurants may be cheaper than in fancy restaurants. Therefore, to save money on food, you’d want to look for a local restaurant where you can enjoy cheap local food. This way, you can also explore diverse food cultures.
- Go grocery shopping: If you have a kitchen, you can shop at the nearest store and prepare your meal. Homemade food is always cheaper than hotel meals, and you can also control the ingredients and portions.
- Check for complimentary breakfast: Many hotels offer complimentary breakfast, so take advantage of this to save money on your first meal.
- Avoid room service: Room service is often expensive, so avoid it if you’re trying to save money. Instead, go out and explore local restaurants or prepare your meal.
If you’re too busy to go out or cook, you can use food delivery apps to order affordable meals from local restaurants. Whoever says you can’t enjoy delicious meals without breaking the bank is mistaken.
Conclusion
When visiting other destinations, it’s easy to get overwhelmed with other things to do, especially on official travel. With these tips, you can reduce costs on your next business trip and make the most of your budget.
Establishing accountability ensures that everyone remains financially responsible. Besides, reducing the cost of travel saves your company more money, which can be used to grow the business.
