Is the cost of business travel hurting your balance sheet? If you're struggling to rein in travel spending, there's two key questions you can ask to identify the weaknesses in your program:
1. What do we currently spend?
If you don't know, or you have large fluctuations in costs, it's likely you're lacking the key tools that deliver visibility and cost control.
Lack of cost control usually stems from a weak travel policy or non-compliance from staff. Booking without mandated limits for spending or travel class removes a vital check and balance in the booking cycle that would otherwise keep your budget in the black.
Self managing your business travel program might seem like the easiest way to keep your schedule ticking over but it's usually the most detrimental factor in losing control of spending. Undisciplined booking behaviour automatically puts your travel program at a disadvantage as you're only likely to find out the real cost of a trip after it's been booked.
2. How can we save?
Start by partnering with a Travel Manager who has access to a global network. This will enable your company to save valuable dollars through accessing the widest range of airfares, hotel rates and car hire rates.
Second, work with your Travel Manager to develop a policy and authorisation procedure to reduce the average cost of each trip. Implementing strong booking guidelines and spending caps are simple tactics to keep the cost of each trip under control.
Taking the advice of an industry professional is a fundamental step to giving your company the direction and tools to reduce the impact of business travel on your bottom line.