With business models becoming more and more global, companies are increasing their corporate travel budgets to send their employees around the world. Obviously, having to travel to meet clients face-to-face is crucial for growing your business, but the increase in travel costs can create a serious dent in your company’s bottom line if you’re not careful.
So how do you know if you’re overspending on your corporate travel services? Here are three of the most common signs we see.
Sign #1: You may not have a clear picture of your company’s spend to begin with.
Without a transparent overview of your company’s total corporate travel spend, you may not even realize how much you’re spending on fees, taxes or other ancillary items like baggage, breakfast and airport parking. Did you know, the airline ancillary revenue hit over $93 billion last year? The question is, do you know what portion of that is generated by your company’s travel program?
By creating a well-defined corporate travel policy and process for managing your company’s travel and expenses, you’ll be better positioned to review exactly what the costs are and see if your budgets are accurate. Without having structure to start with, you may be blind to what you’re spending, what you expect your employees to spend and how to cut back on costs.
Teplis Travel, a leading corporate travel management company, recommends implementing a travel and expense policy for your employees. When there are clear guidelines set out between employer and employee, there is less room for blurred lines and uncertainty. It’s best to establish consistent, reasonable and accountable standards for your employees to follow which will help control your annual costs. Also, having access to advanced technology like what Teplis Travel uses for its clients, including the Benchmarking tool, gives you more details about your company’s travel program, and how it’s performing against companies of similar size, industry and behavior. Do you know how your corporate travel program is performing today?
Sign #2: Your employees lose time and valuable dollars booking travel on their own
You might think that booking travel online is a great way to cut costs, but have you considered how much the wasted hours searching the internet for the best price is costing you? And how do you know if you are getting the best deal or lowest airfare?
Recent statistics suggest that, on average, corporate travelers spend 20 minutes reading hotel reviews before making a booking. Did you know that not all airlines or hoteliers are even presented on online travel sites? That’s right, these vendors are required to pay major fees for their flights or rooms to be displayed during an online search. There is no guarantee that you are receiving the lowest price – only the price the site wants you to see.
At Teplis Travel, our experts have the most advanced technology to capture all pricing, fares and rates in one consolidated view, in order to provide the best available options to travelers. Working with a corporate travel management company will not only cut out the time investment but help ensure the best value to your company.
Sign #3: You’re not sure when to book to obtain the best fares
Companies can save up to 21% of their travel spend by simply booking flights in advance (reported by SAP Concur in a recent study). Business travelers can pay up to 200% more for airfares purchased one day out from travel. Teplis Travel recommends booking a business trip at least 15 days in advance of departure and, if that’s not possible, at least eight days out. Here’s another tip, by enforcing a travel policy that encourages employees to book at least eight days prior to departure, you’ll be able to save an average of $148 per ticket.
With business travel rated as one of the most significant expenses for a business of any size, it is vital for companies to avoid overspending on their corporate travel. For more information on how Teplis Travel can offer you insights on whether your company is overspending on its corporate travel services, contact us today by calling 800-669-6547 or emailing [email protected].