8 Strategies to Cut Travel Costs and Boost ROI

This article is a reprint from Wise Bread, contributed to OPEN Forum by American Express, where small business owners can seek expert advice and exchange useful tips with one another.

Whether your team consists of a couple of salespeople who travel occasionally or a large group of frequent travelers with dedicated travel management, applying these eight strategies will help optimize your company’s travel expenditures.

1. Understand your travelers’ requirements.

Engaging with your employees about their travel preferences is crucial for keeping expenses under control. This involves more than simply choosing smoking or non-smoking categories or window versus aisle seats; it’s about asking your traveling staff, “What do you need to travel comfortably?” You may discover that some team members prefer not to have a king-sized bed or would be fine with a red-eye flight to get home to their families sooner.

Create a straightforward travel survey for employees to complete. Inquire about their preferences, ranked by importance, and keep this information handy when arranging their travel. Along with typical questions regarding flight and accommodation preferences, include specific requests such as dietary restrictions, health accommodations, or preferences for room locations (for instance, some feel safer on lower floors).

By conducting this simple “needs” analysis, you’ll be able to avoid unnecessary expenses while ensuring your employees feel at ease and productive during their travels.

2. Reserve resources for worthwhile trips.

Before finalizing any travel plans, confer with your team to determine if the trip is genuinely necessary. Meetings that can effectively take place via video conferencing or phone calls should typically be conducted remotely. Options like Google Voice or Skype provide economical video conferencing solutions.

In contrast, if the trip is likely to close a significant deal or reach a major milestone, it would justify the expenditure. Face-to-face interactions, such as sharing a meal or drinks with a prospective client, foster genuine connections that cannot be replicated online.

By investing only in the most valuable opportunities, you can help your team spend more nights at home.

3. Keep your team informed.

In these challenging economic times, while it may be easy to issue a blanket statement like “we’re placing you in coach to cut costs,” offering more context can enhance employee morale. It’s essential for your team to feel that their comfort and safety are prioritized. For every budget cut, provide clear reasoning to the team. If there’s a change in hotel partnerships, explain the rationale behind it and how it could positively impact salaries and benefits.

Presenting budget cuts in a collaborative manner fosters a sense of unity among impacted team members. If leadership also opts for coach travel, employees are likely to accept it more readily. It’s vital to treat your employees as capable adults representing your brand, rather than as children without agency. The respect you show will translate into improved morale, increased sales, and greater employee loyalty.

4. Take advantage of corporate rates.

If you haven’t secured a corporate rate with your preferred hotels or rental car services, now is the time to ask for discounts. Many companies provide information online, but a simple phone call to their corporate office can yield substantial savings. Discounts may vary from 5-10% on all bookings to complimentary nights or rental days after meeting certain thresholds.

5. Leverage credit card rewards.

Utilize travel rewards to benefit your employees. If you have enough points to upgrade someone from coach to business class, take advantage of it to enhance their travel experience. Additionally, some credit cards grant access to airline lounges, which can provide a comfortable place for your weary travelers to work or relax worldwide. Certain cards may also offer exclusive access to events or special dining reservations, along with premium concierge services.

Make full use of the rewards available to ease your employees’ travel experiences, particularly in light of budgetary constraints elsewhere.

6. Plan in advance.

Canceling travel plans at the last minute can be both inconvenient and costly, with airline change fees starting at around $150 and hotels charging for cancellations made within 24 hours of the reservation. If cancellations are starting to impact your travel budget, it’s time to evaluate frequent causes of these issues and address them through improved communication.

7. Be conscious of time.

Financial losses can occur when the duration of travel is not clearly defined. Will your sales team be gone for three hours or six? Is an overnight stay required, or can they return the same night? Small travel decisions can escalate into significant costs. By determining the necessary duration for trips, you can reduce both time spent away from the office and expenses.

8. Be explicit about fees.

Fees for ATM withdrawals and luggage are examples of costs many employees might overlook if responsible for their own expenses. Develop a clear policy regarding what expenses will be reimbursed for business travel.

If you opt not to cover specific items, assist your employees in navigating those costs. For instance, provide packing suggestions, allow for the advance shipment of conference materials, or share locations of fee-free ATMs.