With tough economic times taking a toll
on all of us, your first instinct to rising business travel costs might be to eliminate the
expense across the board.
Don’t do it.
Travel leads to growth, and cutting it is
counterproductive. If you’re looking to
adhere to a more realistic plan, consider reevaluating your travel policy and consulting with a travel management company to
save 20 to 30 percent on travel while keeping worthy trips in the budget.
Travel is the second-largest controllable
cost for the average U.S. business, seated
between data collection and salaries, yet
most companies have little or no management of it.
While your company may have an unofficial policy instructing employees to ‘get the
cheapest rate,’ a policy that isn’t managed
and enforced is equivalent to not having
one at all.
A Smart Business poll showed that 82
percent of respondents’ employees are
responsible for making their own travel
arrangements. The problem is, if your
employees are utilizing online booking
agencies or different vendors, your company is likely losing out in the long run. If you
lump your travel needs together with
selected vendors and submit requests for
proposals, your annual negotiated rate will
outweigh nickel-and-dime savings earned
on a case-by-case basis.
