10 ways to save money on business travel

January 18, 2024

Corporate travel buyers continue to name cost reduction as a priority for their travel programmes in 2024, the Institute of Travel Management’s Buyer Knowledge Exchange highlighted at the end of last year. Topics discussed in the exchange included policy parameters, particularly with regards to business class travel, as well as the need to access full travel content.

Some buyers say their travellers are also expressing frustrations because they can book a cheaper fare outside the policy. So how can you get the most out of your business travel budget while preserving the credibility of your travel programme and where can a travel management company (TMC) deliver cost-saving opportunities?

1) Check out cheaper, non-refundable hotel rates

Aside from energy costs and hospitality staff shortages that have played a part in soaring hotel prices – particularly in major cities – the leisure demand over the last year also had a domino effect, although this is now expected to plateau. Including accommodation options in budget planning earlier can be an advantage.

2) Choose preferred vendors

Secure favourable hotel rates with loyalty to a select group of reliable hotel providers.

3) Check ahead for large scale conferences or events in your travel destination

The increasing need for business meetings and events is also leading to busier hotels, underscoring yet another good reason to begin organising travel expenses and reservations earlier rather than later.

4) Establish city spending caps or offer trips based on daily allowance

Set these with your TMC and review them quarterly.

5) Leverage volume based discounts by using your organisations or your TMCs purchasing power

Engage a TMC, which can compare volumes and costs to obtain appealing offers for business journeys.

6) Decrease the frequency of business travel by consolidating meeting in a single trip

Use TMC expertise in securing discounts for multi-stop journeys.

7) Substitute internal meetings with video conferencing

Prioritise this for internal meetings involving five or fewer participants that last for less than 2.5 hours; this will not only reduce expenses but also help reduce your organisation’s carbon footprint. Guidance on sensitive topics, like performance evaluations or brainstorming sessions, should ideally be given in person.

8) Schedule journeys to avoid busy times, opting for easily reachable destinations

Promote early booking for air travel, preferably within a 21-day timeframe prior to leaving, as this is when airlines begin to modify their fares based on demand. Yet it might also be beneficial to wait until closer to departure on non-tourist routes as discounts – especially in higher classes – might be available.

9) If a single journey can be combined with additional tasks, consider how it can be made more productive

Scrutinise all trips that require an overnight stay – is it possible to minimise them as part of a cost-reduction strategy? What’s the typical expenditure on travel? Allow the traveller to work while on the move by booking train travel, with access to WiFi, where possible. Also book a meeting at a venue that’s easily reached from all your office locations, rather than using traditional office hubs, to help reduce travel expenses.

10) Offer more economical transport options

Focus on frequent travellers who log more than 10,000 miles and establish a fleet agreement that provides affordable vehicles. For other modes of travel, and for those covering less than 10,000 miles, encourage ‘most reasonable fare’ terms at the time of reservation. Additionally, offer guidance and instruction on fuel-saving driving methods, including the use of apps for efficient navigation.