Travelling for work opens up many opportunities for businesses and their employees. It's a strategic way to foster deeper connections with clients, attend events, and expand one’s reach and network.
According to Corporate Traveller, Australian business trips last an average of six nights. That's almost double the global average of only three and a half nights! Corporate travel is an integral part of many Australian businesses. However, planning for business trips can be daunting and, not to mention, costly.
The Challenges and Costs of Corporate Travel
Corporate trips offer many benefits. But, there are many challenges and costs that come with them. To prevent your business trip from being way more costly than you budgeted for, be wary of various obstacles including the following:
- Rising expenses. The cost of travel has steadily increased in recent years. Factors such as fuel prices, demand, and currency fluctuations drive this rise.
- Complex regulations. Be mindful of travel regulations, including visa requirements, customs rules, and data privacy laws. Take note that these may vary between countries and regions.
- Security concerns. Always ensure the safety and security of your employees while travelling. Establish safety guidelines and points of contact in case of emergencies.
Despite these challenges, corporate travel remains a vital component of many businesses. A recent study found that 70% of travel spending is domestic. This indicates a strong demand for business travel even in the face of economic uncertainty.
Travel decision-makers anticipate rising business travel spending in the coming years. As such, it’s important to develop and implement effective travel management strategies.
Corporate Travel Tips
While corporate travel can be a significant expense for businesses, there are a lot of benefits that come along with it. With proper planning and implementation of efficient strategies, companies can significantly reduce travel costs and improve overall travel management. Here are some essential tips to help your business streamline corporate travel:
Corporate Travel Management
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Establish a comprehensive travel policy
With a well-defined travel policy, you can ensure consistency, compliance, and cost savings. Create guidelines for booking travel, managing expenses, and handling emergencies.
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Partner with a reputable travel management company
For frequent corporate travellers, planning and managing every trip can get overwhelming. Consider working with a travel management company (TMC) to help streamline the travel booking process. This is a great way to reduce costs and ensure the safety and well-being of employees while travelling.
ProTip: Issue a Virtual Card to your TMC for a consolidated view on all travel spend for digital, effortless travel expense management.
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Update legacy travel management systems
In the era of digitisation, outdated travel management systems can be inefficient. Aside from that, they can also be difficult to maintain and integrate with other business systems. To top it off, changing customer behaviour creates the need for you to adapt and digitise your travel management system.
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Adopt user-friendly travel management platforms/tools
In today's fast-paced business environment, travel management tools should be user-friendly and efficient. Choosing the right tools and platforms can help streamline the booking process, manage expenses, and track travel data.
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Utilise mobile apps to empower employees
Mobile apps have revolutionised the way we travel. With a single tap of your finger, you can access travel information and tools on your smartphone. By implementing a travel app, you can improve efficiency, reduce costs, and enhance travel experience.
Optimising Your Corporate Trips
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Book in advance
It’s important to book your flights and reserve your accommodations as early as possible. More often than not, booking early leads to lower prices, less stress, and more options.
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Explore alternative airports
Indeed, major airports often offer the most convenient flight options. However, exploring alternative airports can sometimes lead to significant savings. Consider using smaller, less congested airports to try and find better deals and avoid crowded terminals.
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Be flexible with travel dates when possible
One of the most effective ways to save money on corporate travel is to be flexible with your travel dates. Airlines often offer lower fares on weekdays or during off-peak travel seasons. By being open to adjusting your travel dates, you stand a chance to secure significant savings.
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Negotiate hotel rates
Don't be afraid to negotiate with hotels, especially if you're booking multiple rooms or staying for extended periods.
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Negotiate group rates for frequent travellers
Negotiating hotel rates can be a powerful way to save money on your corporate trips. If your employees travel frequently, consider negotiating group rates with hotels and airlines.
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Consider alternative accommodations
Hotels are often the default choice for corporate travel. But if you consider alternative accommodations, you may end up saving on travel costs. For longer stays, serviced apartments or vacation rentals can be good alternatives. These can offer better value and more amenities.
Maximising Travel Expense Management
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Set clear expense policies
Establish guidelines for acceptable expenses to ensure consistency and prevent unnecessary costs.
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Implement a digital expense reporting system
A digital system can streamline the expense reimbursement process and reduce errors.
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Encourage employees to use corporate credit cards
Corporate credit cards can provide better rates and centralised tracking of expenses.
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Choose the right tool for your business needs
While there are many expense management platforms, choosing one that fits your needs can take time and effort. It should be a platform that makes your life easier by seamlessly tracking and reporting your business trip expenses. It streamlines the reconciliation process for travel bookings allowing you to manage corporate trips efficiently and effectively.
By implementing these strategies, you can streamline your corporate travel programs, reduce costs, and ensure the safety and well-being of your employees.
Lastly, don’t forget the recommendation we made earlier - Issue a Virtual Card to your TMC for a consolidated view on all travel spend for digital, effortless travel expense management.