One of the most difficult balancing acts of growing a small or medium-sized business is managing the inevitable travel expenses of client meetings, conferences and work-related employee trips.
Sure, you’re not flying business class; nor are you travelling abroad every other month — yet. But you also might not know some of the tricks seasoned corporate travellers have picked up over the years, like how to score upgrades, pack everything you need in a carry on, get a good sleep on a red-eye, or get on and off the plane (and to your meetings) faster.
Never fear — you’ll be an expert in no time! But for now, here are our five best tips to keep costs down, save time with planning and maximise your travel spend on airlines, hotels and car rentals:
While it can be tricky to nail down meetings, dates and details far in advance, it really does save your company money in the long run. Renewing a passport or getting a visa is less stressful, and you won’t have to pay those pesky rush order fees.
Plus, travel generally costs more when it’s booked last minute. In fact, one company, called Corporate Travel Management, released data showing people who booked their flights at least eight to 14 days before travel saved as much as 14% on the full economy fare).
Without the time crunch in planning, you’ll have more time to explore the options — comparing prices of different travel providers; weighing the pros and cons of renting a car vs using public transit; booking a hotel or AirBnb that suits your personal travel preferences; flying into smaller regional airports with shuttles to the city by train or buses.
And by scheduling your business trips at off-peak times of year (avoiding summer months, festive season, or the school holidays), you’ll avoid surges in prices for flights and accommodation. You’ll also have more time to explore your destination after meetings are done for the day if you’re not standing in queues for attractions, or waiting for a table at popular restaurants.
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There’s nothing like a little healthy competition and these days, airlines, hotel chains, credit card companies and car rental companies all have their own incentive and loyalty programmes to win new customers.
These programmes can be your ticket to free flights, hotels or upgrades — and they often give your small business bargaining power to negotiate lower prices as soon as you reach a certain travel spend. They can save you thousands of rands per year!
Loyalty clubs like British Airways’ free On Business programme, for instance, are the perfect option for SMEs, since it doesn't require a corporate deal with BA and applies to travel with more than one carrier — in this case, British Airways, American Airlines and Iberia.
As a member, you’ll collect points that can be used for reward flights or cabin upgrades, and have access to member-only discounts. Moreover, if you're already an Executive Club member with BA or another frequent flyer programme, you’ll earn double the points/miles.
Visit British Airways’ On Business website for more information, or ask your nearest Sure Travel agent how you can take advantage of this programme as a small or medium-sized business.
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Creating a transparent travel policy and reporting system for all your employees is the surest way to curb overspending. Create a guide that covers what expenses are and aren’t permitted: the ballpark amounts they can spend on breakfast, lunch, dinner or drinks; the star-rating of hotels they should book; whether they should use cabs, public transit or apps like Uber; the types of costs that need pre-approval by superiors (ie. if they want to upgrade their seats for extra legroom, or book a business class ticket).
Establish an easy-to-complete reporting system if multiple employees are booking trips on company time. Encourage your employees to keep all receipts for everything booked and spent — not only will it help come tax time, you’ll have a clearer picture about budgeting for future travels. By providing guidance to employees who are travelling for the first time, it'll help reduce anxiety about what will and won’t be covered after the trip (since employees sometimes need to pay out of pocket and provide receipts for reimbursement later).
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While you might take prospective parters or clients to a high-end restaurant, that doesn’t mean you need to eat out for every meal.
After the flight and accommodation costs, the next biggest expense is food and drink — especially if you have unfavourable currency exchange rates, 15% to 20% tips for your server, and local taxes added to the bill every time you dine out. And don’t forget the crazy prices of drinks in your hotel mini bar fridge, if you succumb in a moment of weakness.
Stretch your travel budget further by eating where the locals do; mom-and-pop eateries are often more affordable (and not to mention, more authentic and tasty) than overpriced tourist traps. Or hit up grocery stores for late-night snacks, water (if you can’t drink from the tap) and the odd beer or bottle of wine. You might have to sneak your shopping bags past the concierge — but you’ll save hundreds of rands.
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Scouring the internet for travel specials can quickly prove an inefficient use of billable hours — especially when expert travel agents can find the best deals and plan comprehensive itineraries to your specifications in a fraction of the time (we’re talking like 15 minutes if you have your travel dates, preferences and payment details at the ready).
Save your company money by outsourcing your trip to a dedicated travel management company like Sure Travel — we know the ins an outs of business travel, can book trips for large groups and advise on travel insurance or visas, and have an extensive network of preferred partners who give us the best prices. Plus, we’re there in an emergency: when flights are cancelled or you need to change your itinerary at the last minute.
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Give us a call at +27 (0)861 47 48 49, or contact your nearest Sure Travel agency for a quote.
