ct-hw-5-misconceptions-travel-costs

The top 5 misconceptions about corporate travel costs

 

Think booking the cheapest flight is saving you money? Think again!

Many businesses think they’re saving money on travel, but common misconceptions can lead to overspending. It's time to shake down those tall tales about travel cost savings that you've been swallowing hook, line, and sinker.

Let’s debunk the top 5 myths about corporate travel expenses that are actually bleeding your budget dry and show you smarter ways to manage your travel spend.

Contents

Myth # 1: Booking the cheapest options saves the most money

Reality: The cheapest option isn't always the most cost-effective. Sure, that budget airline might look tempting, but hidden fees for baggage, seat selection, and in-flight services can quickly add up. Not to mention the potential for delays or cancellations that could derail your entire business trip.

Smart approach: Partner with a corporate travel agent to secure competitive rates with airlines, ensuring you get the best deal without hidden costs. Plus, they can provide price assurance, rebooking flights if fares drop. By leveraging their insider knowledge and preferential rates, you can save up to 25% on business travel costs without sacrificing comfort or convenience.

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Myth #2: Travel policies are just red tape

Think that company travel policies are a hassle and don't really save money?

Reality: Without a corporate travel policy, employees might book accommodations or flights based on personal preferences rather than cost-effectiveness, leading to inconsistent and often higher business travel expenses.

Smart approach: Implement a clear and concise travel policy to standardise bookings and ensure that employees stick to preferred suppliers and negotiated rates. This consistency can lead to significant corporate travel savings and better control over your travel budget. Plus, using a TMC can help enforce these policies seamlessly. Hotels typically offer around 10% off, but by booking through a TMC, you can snag even better deals in 90+ countries.

Myth #3: DIY travel booking is more cost-effective

Think that doing it yourself (DIY) is always cheaper than using a travel management company (TMC)?

Reality: DIY might seem like a money-saver at first, but it can quickly turn into a chaotic and costly nightmare. Juggling travel arrangements yourself means stressing over finding the best deal, tracking travel expenses, and handling last-minute changes. Who needs that headache?

Smart approach: Partner with a TMC and let the pros handle it. They take care of everything, from booking flights to sorting out car rentals and accommodations. Plus, their expertise and insider knowledge can unlock special rates and discounts, leading to significant business travel savings. You get peace of mind, your team gets seamless travel, and your company saves money. It’s a no-brainer!

Tip: Think you can outsmart a travel company with DIY internet bookings? Crunch your numbers with Corporate Traveller's Savings Calculator and discover the instant time and money savings you’re missing out on!

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Myth #4: Unused travel credits and refunds aren't a big deal

Keeping track of travel refunds and credits is more trouble than it's worth, or is it?

Reality: Letting unused tickets and travel credits slip through the cracks is like leaving money on the table. Companies typically have 11% of their spend locked in unused tickets, often over $200k. Bigger brands? Over $1 million!

Smart approach: Let a TMC help you streamline the process, ensuring that every penny is reclaimed. With the right tools, managing travel credits becomes a breeze, turning what was once a headache into a significant source of savings. Don’t let those unused tickets go to waste.

Myth #5: Using a corporate travel agent is an unnecessary expense

Think hiring a corporate travel agent or TMC is just another expense without much value?

Reality: Think again! An experienced travel management company can save you more money than their services cost. With access to exclusive discounts, insider deals, and the ability to haggle for better rates on flights, hotels, and car rentals, they’re worth their weight in gold.

Smart approach: Partnering with a TMC is like having a travel superhero on speed dial. They handle all the nitty-gritty travel arrangements, offer real-time support, and secure the most competitive rates out there. Here’s the kicker: for every dollar you spend on a TMC’s fees, you could save an equal amount in travel costs. By harnessing their global buying power, you can slash your business travel spend by anywhere from 5% to 50%. Now, that’s what we call a win-win!

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