The Global Business Travel Forecast 2023 estimates that airfares will rise 48.5% over the last few months of 2022 and a further 8.5% in 2023, while hotel prices will also increase by an anticipated 18.5% this year and 8.2% next year. These hefty increases are adding pressure to already strained business travel budgets, but there is some good news.
Airfares will rise 48.5% over the last few months of 2022
Bonnie Smith, GM of Corporate Traveller, shares these 7 tips that can help you reduce your business travel costs without sacrificing comfort or reliability.
Tip #1 Book in advance
While last-minute travel is sometimes necessary, the best deals tend to be the ones with greater lead time. Smith recommends planning trips at least 15-20 days in advance.
Tip #2 Find ways to be flexible
Ask yourself if you really need to leave on a Monday? The day you fly can have a significant cost implication, with mid-week flights tending to be more economical. When booking, search with flexible arrival and departure dates and times.
Tip #3 Avoid the peak holiday season
An easy way to cut costs without sacrificing quality is to simply plan events and sales trips during the off-peak season. This helps you to avoid expensive peak holiday times for both travel and accommodation, while also giving you more options.
Tip #4 Donβt get caught up on stars
Smith highlights that a 3-star hotel can cost just as much as a 4-star hotel, so always work with a maximum budget in mind and communicate this to your travel management company. Theyβll find the best accommodation to suit your needs.
Tip #5 Get the best deals
A great way to save on travel costs is to use a travel management company (TMC). TMCβs have access to the best flight inventory and can integrate hundreds of travel networks when searching for and booking corporate fares, helping you find the best deals without spending hours researching online.
Tip #6 Loyalty pays
Committing to a single hotel chain can help you negotiate a better price and even gain additional benefits, from free upgrades to early check-ins and complimentary breakfasts. A large TMC usually has access to great negotiated rates with major airlines and hoteliers, for your benefit.
Tip #7 Get real about daily costs
Incidental costs can greatly impact your budget. From meals to Wi-Fi charges or luggage fees, these can quickly add up. Again, a TMC can help you here by calculating appropriate per diems for both the destination and the nature of the trip.
The weakened rand can quickly put a dent in a businessβs travel expenses, but Smith adds that working with travel professionals will help you spend your money more wisely; βThey have quite a few tricks up their sleeve β not to mention global buying power β to help you cut costs and keep travel affordable.β
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