The costs associated with business travel have been rising steadily over the past decade. With transportation, lodging, dining, and other expenses, business travel has become one of the top budget concerns for companies of all sizes.
Amid difficult economic times, organizations seek ways to reduce these significant costs without negatively impacting productivity and business results. The good news is that through business travel management software, companies can dramatically cut business travel costs while enabling employees to book and manage trips efficiently.
This blog will explore some of the most effective tips and strategies for how to cut business travel costs.
How to Cut Business Travel Costs?
Companies can focus on a few key strategies to cut business travel costs. First, planning trips well in advance helps secure better deals on flights and accommodations. Second, encouraging employees to choose cost-effective options within company policies, like economical hotels or flights, can make a big difference. Using technology, such as travel management software, can help track expenses, identify corporate travel savings opportunities, and prevent fraud.
The features listed below help in significant corporate travel savings.
1. Incentivization
Incentivization through money-saving sharing is a clever strategy that motivates travelers to make cost-effective travel choices. When employees choose more budget-friendly travel options, such as cheaper flights or accommodations within the company’s policies, a portion of the money saved can be shared with them as a reward. This approach encourages employees to be mindful of expenses and aligns their interests with the company’s cost-saving goals.
For example, if an employee selects a less expensive flight or accommodation that saves the company money compared to a higher-priced option, a percentage of that saved amount could be returned to the employee as a bonus or reward. This creates a win-win situation: the company reduces expenses, and the employee receives a bonus for their conscious spending choices.
2. Flight Price Reshop
Flight prices constantly change, and sometimes you may book flights at a higher rate than usual. This may cause you to exceed your budget. However, you can automate buying the lowest-priced ticket that is available after your initial booking with this software.
itilite constantly monitors the prices of these booked flights in the background, using algorithms or tools that track fluctuations in airline ticket prices. Sometimes, prices for the same flights drop significantly due to airline promotions, changes in demand, or other factors.
Upon detecting the lower fares that meet the company’s travel policies, itilite can automatically rebook the tickets at reduced prices. Alternatively, it might send notifications to the travel manager or designated personnel, suggesting the rebooking options.
By securing the same flights at a lower cost, the company saves money on travel expenses without compromising on the travel schedule or quality of service. All these actions are executed in compliance with the company’s travel policies and seamlessly integrated into the booking system, ensuring a hassle-free experience for employees.
3. Unused Flight Ticket Management
itilite establishes a centralized system for tracking all purchased flight tickets, maintaining comprehensive records of their status, usage, and expiration dates. This centralized approach ensures that the information is easily accessible to travel administrators and relevant stakeholders.
The system generates automated alerts and notifications to keep stakeholders informed about upcoming ticket expirations or usage deadlines. This proactive approach helps avoid missed opportunities to utilize the tickets effectively.
The platform suggests strategies to maximize the value of unused tickets. This includes recommendations for utilizing them in future trips, transferring them to other employees, or converting them into credits for future bookings, all within the guidelines of the company’s travel policies.
By actively managing and leveraging unused flight tickets, itilite empowers companies to significantly reduce the financial losses associated with unused travel credits.
4. Technology Helps in Automatic Expense Fraud Detection
itilite uses AI-driven technologies to scrutinize expense reports thoroughly. Its primary goal is to spot irregularities or suspicious activities that might indicate fraud, misuse of funds, or non-compliance with company policies.
The system analyzes historical data and expense patterns to establish a baseline of typical spending behaviors for comparison. It applies specific rules set by the company, cross-referencing expenses against policies, spending limits, or approved vendors. When an anomaly is detected, it notifies the manager of potential fraud or policy violations, allowing for prompt action.
5. Virtual Travel Consultant – itilite Mastermind
itilite Mastermind revolutionizes your current travel and expense dashboards by continuously streaming insights that uncover significant corporate travel savings opportunities. The software does so by:
- AI-Driven Insights: Utilizes AI and machine learning to analyze historical travel and expense (T&E) data accumulated over months or years within the company.
- Customized Suggestions: Tailors suggestions and recommendations specifically to the company’s practices and policies, ensuring personalized and relevant insights.
- Financial Impact Assessment: Calculates and communicates potential cost savings and strategies to achieve T&E program goals, positively impacting the company’s financial bottom line.
- Behavioral Change Strategies: Recommends strategies that drive behavioral changes in T&E spending across the organization, ensuring more cost-effective practices.
- Regular Updates and Streamlined Suggestions: Delivers cost-effective solutions and suggestions directly to the Mastermind dashboard, streamlining the process of monitoring and implementing improvements in spending behavior.
- Comparative Analysis: This section compares the company’s T&E practices against industry benchmarks, highlighting areas where cost-saving measures can be implemented more effectively.
- Integrated Dashboard: Presents insights and recommendations through an intuitive dashboard, making it accessible and understandable for finance, HR, or admin teams.
6. Analytics and Reporting
Analytics and reporting are beneficial for companies to save money, especially when it comes to things like managing travel costs. It acts like a guide that helps businesses understand their expenses better. Looking at past travel spending data, these tools show trends and important details that help companies make better choices. For instance:
- Last-Minute Bookings Analysis: Examining the frequency and cost implications of last-minute bookings. This helps identify trends where advanced planning could yield significant cost savings, such as encouraging early bookings or analyzing the added expenses of urgent trips.
- Non-Compliant Bookings Assessment: Identifying instances where employees have booked outside the company’s travel policies. This analysis helps understand non-compliant bookings’ frequency, reasons, and cost impact, allowing for policy adjustments or employee training to ensure adherence.
- Traveler Spending Patterns: Analyzing individual or departmental spending patterns helps understand which company segments incur higher expenses. This insight can guide discussions on cost-saving measures tailored to specific departments or employees.
- Preferred Vendor Analysis: Assessing which vendors or airlines are frequently chosen for bookings. This allows negotiation leverage by consolidating bookings with preferred vendors or identifying opportunities for bulk discounts.
Conclusion
We hope this blog has been insightful about how to cut business travel costs. Our platform isn’t just a one-size-fits-all solution. The corporate travel management solution customizes recommendations and insights to suit your company’s unique needs
Book a demo now to witness how itilite doesn’t just manage travel but becomes a catalyst for elevating your company’s financial efficiency.
