How To Save Money On Business Travel? 20 Best Practices For Cost Control

Businesses can save significantly on travel expenses by planning smartly and leveraging tools like prepaid cards, travel fare alerts, and travel policies.

For many businesses, as necessary as business travel is, the unexpected travel expenses that come with it can be a financial strain. Employees often book flights last minute, overspend on meals at premium restaurants, and choose expensive hotels. What should be strategic investments quickly transforms into major expenses that eat into profits.

Global business travel spending has surged from $1.43 trillion to $1.48 trillion by 2024, and with projections indicating it will exceed $2 trillion by 2028. This represents a staggering 35% rise in just four years, outpacing most businesses' revenue growth.

This shows that in today's economy, face-to-face meetings and client visits remain essential for growth. The challenge isn't whether to travel, it is how to save money on business travel while still enabling employees to meet business goals. This article looks at 20 strategies to control costs and reduce business travel expenses.

Best Practices To Save Money On Business Travel

Saving money on travel isn't about restricting employees; it's about planning smarter ̧and leveraging the right tools. Here are the 20 best practices that every business should implement to save on employee business travel expenses.

Build Strategic Travel Policies

1. Set a Detailed Travel Policy

A comprehensive travel policy in place is extremely important while managing employee business travel expenses. The policy should specify the travel booking process, expense categories, non-reimbursable purchases, etc.

2. Book Travel in Advance

Nearly 23% of business travelers wait until the week before departure to book domestic trips, which leads to inflated costs.. Hotels and flights use dynamic pricing models, which means that when demand is high and the travel date is near, prices rise. By booking early, businesses can secure lower rates.

3. Negotiate Corporate Travel Agreements

Frequent travel gives companies leverage to secure discounted rates with hotels and airlines. Corporate agreements often include perks like free Wi-Fi, breakfast, and flexible cancellations.

4. Use Loyalty Programs

Participating in loyalty programs can help reduce business travel expenses to a great extent. Moreover, loyalty memberships can be used to collect points and travel incentives in the long term.

Save On Hotel Accommodation

5. Choose Hotels Strategically

Consider proximity to meeting venues, transportation, and airports for reduced hotel costs. These small savings impact the overall work trip expense and can significantly add up if not monitored carefully.

6. Opt For Hotels With Breakfast

This may sound simple, but choosing hotels that include complimentary breakfast is a highly effective cost-saving measure. Travelers can save €20 - €30 per day on meals, making it a smarter way to keep expenses under control.

7. Book Hotel & Flight Packages

Cut costs and save time by booking flights and hotels together through travel platforms. Bundle deals often come at discounted rates. These packages not only reduce overall costs but also simplify the booking process, making it easier to manage business travel.

Optimise Business Travel Expense

8. Set Up Fare Alerts & Tracking

If your business often travels the same route, use price tracking and fare alerts to secure the lowest rates. Tools like Google Flights and major booking platforms notify you when prices drop, helping you book flights at the cheapest time.

9. Leverage Public Transportation

Encourage employees to leverage public transport to save on car rentals and taxis. Many cities offer efficient transit systems connecting major parts of the business districts.

10. Travel During Off-Season

Schedule trips during off-peak periods to reduce overall costs. Prices for everything really drive up during peak travel season; avoiding business travel during this phase can help save on major travel expenses.

Implement Smart Payment Solutions

11. Opt For Prepaid Travel Cards

Businesses typically pay between 2.75% to 3% on foreign transaction fees on purchases abroad with business credit cards. Using a prepaid travel card like the one offered by CleverCards helps provide better control and reduces the risk of overspending.

12. Try Price Comparison Tools

Compare rates across multiple platforms before booking. Encourage employees to compare prices to find hidden deals and discounts.

13. Use Online Expense Management

Manual reimbursements are not only time-consuming but also a risky expense. Statistics show, reimbursement fraud accounted for 13% of all occupational fraud in 2024, with a median loss of $50,000. Use digital expense management tools to streamline reporting and reduce fraud risk.

Manage Meal & Entertainment Costs

14. Set Reasonable Per Diem Limits

Providing employees with a fair daily allowance is one of the most effective ways to manage employee business travel expenses. In Ireland, these allowances can also qualify for tax-free benefits, helping businesses save even more. CleverCards is the best travel card for employees. Companies can instantly allocate per diem allowances in real time, ensuring staff have the funds they need while keeping travel costs under control.

15. Promote Local Eateries

Choosing local dining options can significantly improve costs and provide an authentic cultural experience. Additionally, add restaurant recommendations in travel guidelines to make the choice easier and save money.

16. Utilise City Passes & Local Cafes

City passes can significantly reduce transportation costs when employees need to move across the city. Additionally, choosing local cafes for meetings instead of expensive restaurants helps control meal expenses.

Monitor Expenses & Improve

17. Update Travel Policy Annually

Travel budget and vendor rates change over time; updating your travel policy in a timely manner ensures it stays relevant. Regularly review and incorporate new cost-saving practices and remove outdated rules.

18. Monitor Travel Data Regularly

Tracking travel spending and data regularly helps identify gaps and areas of improvement. A survey revealed that over 50% of travelers don't follow company policy when booking travel. Consistent supervision ensures compliance with these policies.

19. Limit Last-Minute Bookings

Incorporate strict rules around booking travel last minute. Encourage planning flights, hotels, and transport in advance to ensure lower rates.

20. Educate Employees On Cost-Saving

Lastly, educate employees on these cost-saving measures. All the above efforts will be ineffective if employees aren't aware of them. Brief them on how to save expenses on trips and the importance of optimised travel budgets.

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