Cost control continues to be one of the biggest challenges for travel buyers in 2025. Yet while companies expect them to reduce spending on corporate travel, prices across airlines and hotels are expected to rise, albeit modestly. Plus there’s still the challenge of travellers booking outside company travel policy, that can often bump up costs of a corporate travel programme. So how can you save money on business travel while preserving the credibility of your travel programme?
1) Find cheaper, non-refundable hotel rates booking in advance
Aside from energy costs and hospitality staff shortages that have played a part in soaring hotel prices – particularly in major cities – the leisure demand is expected to grow as holidays emerge as a priority for consumers in 2025. Therefore, including accommodation options in budget planning for corporate travel programmes as early as possible can be an advantage to getting better rates.
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 travel management company (TMC) and review them quarterly.
5) Leverage volume-based discounts by using your TMC’s 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 meetings 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.
DISCOVER MORE WAYS A TMC CAN HELP SAVE MONEY ON BUSINESS TRAVEL
WITH HOTELS
· Global hotel programme negotiation
· Access to TMC-negotiated rates
· Continuous rate checker
· Room upgrades
· Added amenities: WiFi, food and beverage, etc.
· Waived resort and amenity fees
· Early check in and late check out
· Loyalty programme eligibility
WITH AIR FARES
· Access to global fare inventory, including via NDC
· Route deal negotiation and optimisation
· Creative ticketing to reduce costs
· Continuous fare checker
· Seat upgrades
WITH CAR/RAIL TRAVEL
· Discounts on car rental
· Vast ground transportation options
· Access to rail across various destinations
Mail hello@reedmackay.com to discuss all of your corporate travel and event management needs.
