Business travel continues to experience significant momentum in 2024. The latest Global Business Travel Forecast from CWT and the Global Business Travel Association (GBTA) highlights that costs for business travel and events will stay elevated throughout the year.
This trend is driven by higher fuel prices, labour shortages, and ongoing supply chain issues. However, the forecast suggests that while costs will still be on the rise, the increases will be less dramatic compared to the sharp surges seen back in 2022.
Patrick Andersen, CEO of CWT, comments, “Looking ahead, we expect prices to stabilise with more moderate increases over the next 12 to 18 months. We might be approaching the new standard for travel expenses.”
The shifting landscape of business travel cost and trends
Business travel costs are on the rise, and the way companies handle their travel budgets is changing fast.
We’re seeing a huge cost jump, with average flight prices for business travel soaring 72.2% in 2022 compared to the previous year. Hotel rates are also up, climbing 29.8% year-over-year. These increases are partly due to pent-up demand, labour shortages, and higher costs for essentials like energy and supplies.
On the trend front, “super commuting” is becoming more common. That’s where employees are travelling longer distances to work because of more flexible remote work options. Companies are updating their travel policies to keep up with these new patterns and the rise in flexible work arrangements.
Plus, sustainability and technology are making waves in business travel decisions. Companies are paying more attention to the environmental impact of their travel and looking for tech-driven solutions to make their travel practices more efficient and eco-friendly.
9 Key Ways to Maximise Your Business Travel Budget
With a smart strategy, you can reduce costs on every trip and keep your travellers and stakeholders happy. Check out these top 10 tips for getting the most value from your business travel budget:
1. Revamp your business travel policy
1. Revamp your business travel policy When managing business travel, there’s a lot to oversee—from booking flights to meal allowances and handling expenses. It’s crucial to review your current travel policy to ensure it addresses every aspect of travel management.
Begin by refining the fundamentals: establish a robust approval process and set clear guidelines for all travel-related activities, including bookings, on-site spending, and expense management. By implementing these well-defined procedures, you’ll empower your travellers to make decisions that align with your policy, helping to prevent unexpected costs and protect your budget.
Learn more on how to create a good travel policy for employees in your organisation.
2. Set up a pre-trip approval process
One of the simplest ways to reduce business travel costs is by implementing an approval system for every trip. Clearly define who needs to authorise travel plans to prevent the hassle and expense of cancelling trips after they’ve been booked.
If you’re working with a travel management company, take advantage of their online booking tools, which typically include built-in approval processes. This allows you to easily manage and address any issues if travellers stray from your policy.
3. Cut costs on airline flights
Airline tickets can quickly become a major expense, so being strategic about bookings is key to saving money. Encourage employees to be flexible with travel dates, choose budget airlines, and stick to economy flights whenever possible. Fixed itineraries are usually more cost-effective, so flexible tickets should be reserved for cases where they are necessary.
Additionally, keep an eye out for airfare promotions and discounts. Setting up alerts for special deals can help you snag lower prices and further reduce your overall travel costs. Taking these steps can make a big difference in managing your travel budget effectively.
4. Save more on your stays
Hotel room rates can vary widely, even within the same hotel, so being strategic can lead to significant savings. If you allow your business travellers to choose their accommodations, set a budget limit or star rating to keep costs in check. Specify that standard rooms are preferred and clarify whether you’ll cover additional charges like the minibar or Wi-Fi.
If you prefer to handle bookings yourself, doing some research can go a long way. Look for hotels with genuine reviews from fellow business travellers and check for any special discounts for frequent visits to the same location. Keeping an eye on prices and rebooking when rates drop can also help you save.
5. Explore the benefits of bleisure travel
Combining business with leisure travel, known as “bleisure,” offers added flexibility with travel timing, which can often result in lower costs. This blended approach is increasingly embraced by senior management, as it helps balance work with personal time. A global report from Future Market Insights reveals that bleisure travel now constitutes 33% of all business trips.
This trend highlights a shift in priorities since the pandemic, showing that integrating work and leisure can significantly enhance employee well-being, boost retention, and attract top talent, particularly among younger professionals. By offering this flexibility, companies can create a more appealing and supportive work environment.
6. Maximise efficiency with trip-batching
Jump on the trend of sustainability and cost savings with a strategy called trip batching. Instead of booking separate trips, go on a group trip to the same region and schedule multiple visits at once. Since the pandemic, multi-destination trips have increased by 10%.
Batching trips can cut down on emissions, save money, and make better use of your employees’ travel time. It’s a win-win for both your budget and the environment.
7. Encourage budget compliance with clear communication and rewards
Cutting travel costs becomes more manageable when employees grasp the reasons behind these efforts. Communicate why saving is important—for example, to ensure that annual retreats or other employee perks remain enjoyable and sustainable.
If transparency alone isn’t enough to motivate your team, consider implementing incentives. Travel managers can reward budget-conscious employees with bonuses, team lunches, or mileage points. This strategy not only makes sticking to the budget more engaging but also reinforces a sense of accomplishment and teamwork, making it easier to achieve cost-saving goals.
8. Leverage technology for effortless travel expense management
Technology simplifies the complexities of travel expense management. With the right software, you can cut out hours of manual work, such as searching for deals, managing spreadsheets, and tracking expenses throughout the travel journey. This software allows you to customise budgets based on different traveller roles and trip types with ease.
Beyond just streamlining booking and approval processes, travel expense management software enables you to apply traditional cost-saving tactics more effectively. By providing real-time data insights, it ensures that travel experiences run smoothly and helps keep travellers productive, ultimately making the entire process more efficient and cost-effective.
9. Partner with a travel management company
Collaborating with a travel management company (TMC) can optimise every aspect of a business’s travel program, including cost-saving strategies in the post-COVID era.
A TMC offers comprehensive visibility into travel programs, enabling informed decisions that lead to significant cost reductions. Companies benefit from the TMC’s global reach, cutting-edge technology, and extensive network of suppliers and partners.
In addition to leveraging negotiated rates and special deals, a TMC provides 24/7 support for any travel issues that may arise, such as missed connections, emergencies, or lost luggage. This ensures travellers have a smoother experience while helping businesses get the most value from their travel budget.
Holiday Tours: Ensuring safety and seamless travel experience
Partnering with a travel management company like Holiday Tours brings a heightened level of safety and reliability to your business travel program. Our Travel Safety Promise, developed with the MATTA – Travel Safe Malaysia program, reflects our dedication to securing and ensuring worry-free travel experiences. We enforce rigorous safety and health protocols to protect travellers from various risks, including natural disasters, crime, and social unrest, earning us the prestigious Hygiene Excellence and Safety Label.
With nearly five decades of experience and a strong track record with over 500 corporate clients, we excel in delivering seamless and tailored travel solutions. Our commitment to client-centric service, supported by advanced technology, ensures efficient and hassle-free arrangements. Additionally, we offer 24/7 support to handle any travel issues, providing peace of mind throughout the journey.
Transparency is a cornerstone of our service, with clear and comprehensive reporting to keep travellers informed. We also accommodate changing plans with flexible policies and offer broad access to flight options, accommodations, and transportation services.
Learn more about our commitments to Travel Safety Care and Travel Safety Promise.
Streamline your corporate travel budget with Holiday Tours
Wondering how to cut costs on your work trips? You’re not alone! At Holiday Tours, we tackle this challenge every day. We tailor everything to fit your needs, from hotel preferences and travel policies to booking requirements. Think of us as your go-to partner for making corporate travel both budget-friendly and hassle-free.
LEARN MORE ABOUT CORPORATE TRAVEL EXPENSE MANAGEMENT
REACH OUT TO US AT +603 2303 9100 (PRESS 3) OR [email protected]
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