This piece is a reprint of Wise Bread’s submission to OPEN Forum from American Express, where small business proprietors can seek expert advice and exchange tips with peers.
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Whether your travel team consists of just a couple of individuals undertaking occasional trips or a larger group of frequent travelers operating under a dedicated travel management department, the following eight strategies can enhance your organization’s travel budget efficiency.
1. Understand the needs of your travelers.
Engaging your staff in conversations about their travel requirements is key to managing expenditures effectively. This encompasses more than just preferences like smoking or non-smoking rooms and seat choices; it’s essential to ask your traveling employees, “What do you genuinely need for a comfortable travel experience?” Some may prefer not having a king-sized bed or might be comfortable taking a late-night flight to arrive home sooner.
Create a straightforward travel preference survey for employees to complete, allowing you to consider their options when organizing travel. Beyond simple inquiries about flight seating and hotel accommodations, include specifics like dietary preferences, special health considerations, and room floor preferences (as some may feel safer on lower floors).
By conducting this brief “needs” assessment, you can decrease costs on amenities that employees might not value, all while enhancing their comfort during work travel.
2. Reserve your resources for essential trips.
Before confirming any travel arrangements, discuss with your team whether the trip is necessary. Meetings that can be effectively conducted via conference call or online platforms should preferably happen remotely. Quality options like Google Voice and Skype facilitate low-cost video meetings.
However, if the journey is likely to result in a significant milestone, like securing a contract, it is worth the investment. Face-to-face interactions, such as a casual meeting over drinks or a meal with a prospective client, are invaluable.
By prioritizing significant opportunities, you can keep your team at home more frequently.
3. Keep the team informed.
Given the economic climate, while it might be easy to simply state, “We need to save money, so you’re in coach,” providing additional context can help maintain employee goodwill.
Ensure your team understands that their comfort and safety are top priorities. For each budgetary adjustment, clarify your rationale. If you switch hotel providers, explain the decision and how it could potentially improve pay and benefits.
Positioning these adjustments as team-based decisions fosters unity among those impacted. If top executives also take coach flights, it’s likely to be accepted more readily by middle managers. Remember, these are professional adults representing your company, deserving of respect, which can lead to heightened morale, strong sales, and employee loyalty.
4. Make use of corporate discounts.
If you’re not already leveraging group rates with your frequently-used hotels or rental car services, now’s the time to negotiate discounts. Many companies will outline their corporate rates online, but a direct call to their corporate office can yield considerable savings. Discounts could range from 5-10% off bookings to complimentary stays after a set number of reservations.
5. Take advantage of credit card rewards.
Distributing travel rewards back to employees can uplift morale. If you have points available for an upgrade from coach to business class, use them to enhance your employee’s travel experience. Some credit cards even offer access to airport lounges where road warriors can work or rest comfortably during layovers, along with exclusive reservations and concierge services.
Maximizing these rewards can significantly ease the stress on your traveling staff (especially during budget cuts in other areas).
6. Plan ahead.
Last-minute cancellations can be disruptive and costly. Change fees from airlines often start around $150, and many hotels will impose charges for late cancellations. If these cancellations are taking a toll on your travel budget, it might be time to analyze and address the underlying causes, following the communication strategies mentioned previously.
7. Be mindful of time.
Funds can also be wasted when travel durations are not clearly defined. Will your sales staff be away for three hours or perhaps six? Will they be able to return that evening, or will an overnight stay be required? Simple decisions can lead to significant expenses. By clarifying the necessary duration of trips, you can minimize time away from the office and reduce costs.
8. Hold fees responsible.
Expenses such as ATM fees and luggage charges can accrue unnoticed if employees don’t consider them while traveling for work. Establish a transparent policy outlining what costs will be reimbursed for business travel.
If certain items are not covered, assist employees in navigating around these challenges by providing packing advice, offering to ship conference materials beforehand, or supplying information on fee-free ATM locations.