Cost is a critical consideration in our current economic climate. This is especially true when it comes to assessing corporate travel budgets. Remote working and online meetings have become the norm, which is why many businesses may question whether the cost and potential risk of corporate travel is worth it.
“When it comes to business growth, nurturing relationships, and fostering new ones, there simply isn’t any alternative more powerful than standing in front of somebody face-to-face,” says Oz Desai, GM Flight Centre Business Travel (FCBT). “In-person conversations lower the risk of miscommunication, make it easier to create a favourable first impression, and boost the chances of closing a deal.”
“In-person conversations lower the risk of miscommunication, make it easier to create a favourable first impression, and boost the chances of closing a deal.”
Corporate travel has also proven an effective tool to motivate and retain employees – especially Millennials and the up-and-coming Generation Z. As such, business travel still plays an invaluable role in a corporation’s success.
Fortunately, there are proven strategies to managing your corporate travel budget – which Desai shares here:
#1 Time it right
Last-minute business trips should be avoided. Aside from creating undue pressure, it increases the risk of error and is likely to increase costs. Research carried out by FCBT reveals that business travellers can expect to pay up to 200% more for airfares purchased one day out from travel. Conversely, booking flights in advance can help companies save up to 21% of their travel spend.
#2 Find the right partner
Desai recommends both big and small businesses use a TMC (travel management company). The purpose of TMCs is to help clients save both time and money, which they achieve through various partnerships with travel suppliers locally and abroad. They also support duty of care, which gives travellers and employers peace of mind that their safety is a top priority.
Furthermore, a TMC with a BBBEE certificate offers economic benefits, and demonstrates the company’s commitment to transformation.
#3 Be wary of ‘cheap’
This might sound counter-intuitive but looking for the cheapest deals can end up costing the company more money. For example, a cheap hotel on the outskirts of town can look a great deal on the surface, but could end up costing more in terms of transport. In this case, a conveniently-located budget-friendly guesthouse that offers value-added extras such as free parking and Wi-Fi could work out to be more affordable – not to mention a time saver.
#4 Be prepared with a travel risk policy
Now more than ever, you need to be prepared for an emergency. A number of insurance providers claim that a significant amount of their companies’ costs are related to accident claims. If one of your employees is injured or falls ill while on a business trip, the right insurance policy could save your firm a lot of money.
#5 Mind the smaller expenses
Many of the smaller costs associated with seemingly ‘affordable’ luxuries, such as early check-in and airport lounge access, can quickly add up. Desai says that the secret here is to negotiate agreements with hotels and airlines that cover these ancillary fees. (Of course, a good TMC will do this for you!)
