How Do Travel Rewards Programs Lead to Corporate Savings?

In today’s corporate world, businesses always look to cut costs and boost savings. Travel expenses often loom large on the balance sheet. While travel is necessary for many companies, it can significantly drain resources.

One effective strategy for mitigating these costs is to take advantage of travel rewards programs. This guide will explore the best travel rewards programs and provide a roadmap for saving money through them.

What are Travel Rewards Programs?

Business travel rewards programs, frequent flyer programs, or loyalty programs are initiatives offered by airlines, hotels, credit card companies, and other travel-related businesses.

These programs are designed to reward business travelers for their continued patronage by offering various benefits, perks, and incentives. 

Key Elements of Business Travel Rewards Program

Critical elements of business travel rewards programs typically include:

1. Points or Miles: Travelers earn points or miles based on their spending or usage of a particular travel service. For example, frequent flyer miles are earned based on the distance flown or the fare class booked, while hotel rewards programs often award points based on the number of nights stayed.
2. Tier Status: The best travel rewards programs have tiered membership levels (e.g., silver, gold, platinum) that offer increasingly attractive benefits as travelers move up the ranks. Earning a higher status often requires reaching specific spending or usage thresholds.
3. Redemption Options: Accumulated points or miles can be redeemed for various rewards, including free flights, hotel stays, car rentals, upgrades, and merchandise or gift cards. The flexibility of redemption options varies by program.
4. Travel Benefits: Elite members of the best travel rewards programs often enjoy additional travel-related perks, such as priority boarding, lounge access, free checked bags, and expedited security screening.
5. Exclusive Offers: Members may receive exclusive offers, promotions, and discounts unavailable to non-members. 
6. Co-Branded Credit Cards: The best business travel rewards programs partner with credit card companies to offer co-branded credit cards that allow cardholders to earn extra points or miles for everyday purchases, accelerating their ability to earn rewards.
7. Partnerships: Some programs partner with other businesses, allowing members to earn and redeem points or miles across a broader range of services and products.
8. Expiration Policies: Points or miles in business travel rewards programs may have expiration dates if not used within a specific time frame, encouraging travelers to continue engaging with the program. 

Benefits of Travel Rewards Program

Travel rewards programs offer participants a wide range of benefits, making them an attractive option for frequent travelers. These benefits can enhance the travel experience and provide significant value for program members. 

Here are some key benefits of travel rewards programs:

1. Free Travel and Upgrades: One benefit is earning points or miles. You can redeem them for free flights, hotel stays, car rentals, and more. Elite program members often get free upgrades. These include business-class flights and fancy hotel rooms. The upgrades make their travel more comfortable and luxurious.
2. Cost Savings: Travel rewards programs can lead to big savings. This is especially true for those who often travel for business or leisure. Redeeming points or miles for travel expenses reduces the out-of-pocket costs for flights, accommodations, and transportation.
3. Priority Services: Elite members typically enjoy priority services, such as expedited check-in, security screening, and airport boarding. This can significantly reduce wait times and streamline the travel process.
4. Lounge Access: Many travel rewards programs provide access to airport lounges. There, members can relax and enjoy free food and drinks. They can also access Wi-Fi and work or relax in a comfortable environment.
5. Extra Baggage Allowance: Some programs offer free checked bags or increased baggage allowances, helping travelers avoid additional luggage fees.
6. Travel Insurance Benefits: Some credit cards provide travel insurance. This includes trip cancellation/interruption, rental car, and emergency medical coverage. It gives peace of mind during trips.
7. Global Alliance and Partnerships: Many business travel rewards programs partner with airlines, hotels, and other travel providers worldwide. This expands the program’s reach, allowing members to earn and redeem rewards across a broader network of destinations.
8. Earning Potential with Credit Cards: Co-branded credit cards affiliated with travel rewards programs often offer accelerated earning rates for points or miles on everyday purchases. Cardholders can maximise their rewards by using these cards for everyday spending.
9. Flexible Redemption Options: Business travel rewards programs often let members redeem points or miles for travel expenses, such as hotels, rental cars, flights, and tours and activities.
10. Personalised Travel Experiences: The rewards programs may offer personalised recommendations and travel itineraries based on a member’s travel history and preferences, enhancing the overall travel planning experience.

The Best Travel Rewards Programs

India offers a variety of travel rewards programs that cater to frequent travelers, providing them with opportunities to earn points and enjoy exclusive benefits. Here are some of the top travel rewards programs in India:

1. JetPrivilege (InterMiles)

JetPrivilege, now known as InterMiles, was initially associated with Jet Airways. Despite the airline’s grounding, the program continues to thrive, allowing members to earn miles through flights, hotel bookings, dining, and more. These travel rewards can be redeemed for free flights, upgrades, and other travel-related perks.

2. Vistara Club Vistara

Club Vistara is Vistara Airlines’ frequent flyer program, a joint venture between Tata Sons and Singapore Airlines. Members earn points, known as CV Points, for every flight. These travel rewards can be redeemed for free tickets, upgrades, and access to exclusive airport lounges. The program also offers various tiers, such as Silver, Gold, and Platinum, each with its privileges.

3. Air India Flying Returns

Flying Returns is Air India’s loyalty program, allowing members to earn miles on domestic and international flights. These miles can be redeemed for award tickets, class upgrades, and access to Air India lounges. The program also partners with other airlines in the Star Alliance network, providing more opportunities for earning and redeeming miles.

4. Taj InnerCircle

The Taj InnerCircle program by Taj Hotels is ideal for those who prefer luxurious stays. Members earn points for stays, dining, and spa services at Taj properties. These travel rewards can be redeemed for complimentary stays, room upgrades, and dining experiences. The program also offers different tiers, such as Silver, Gold, and Platinum, each with additional benefits.

5. ITC Hotels Club ITC

Club ITC is the loyalty program for ITC Hotels, providing members with Green Points for every stay, dining, and spa service at ITC properties. These travel rewards can be redeemed for free stays, dining vouchers, and spa treatments. The program also offers exclusive privileges like early check-ins, late check-outs, and room upgrades.

6. Yatra eCash

One of India’s leading online travel agencies, Yatra, offers the Yatra eCash rewards program. Members earn eCash on every booking, which can be used to get discounts on future bookings, including flights, hotels, holiday packages, and more. The business travel reward programs user-friendly and provide an easy way to save on travel expenses.

7. MakeMyTrip MyRewards

MakeMyTrip’s MyRewards program allows members to earn reward points on every booking made through the platform. These travel rewards can be redeemed for flight discounts, hotel stays, and holiday packages. The program also offers exclusive deals and promotions for its members.

8. Cleartrip Rewards

Cleartrip Rewards is another excellent program for frequent travelers. Members earn travel rewards on every booking, which can be used to get discounts on future bookings. The program also offers exclusive deals and promotions, making it a great platform. 

The Roadmap to Corporate Savings

We’ve found some of the best business travel rewards programs. Now, let’s look at how to use them to save money for the company.

Ways to Achieve Corporate Savings

1. Choose the Right Travel Rewards Program: Maximising corporate savings with travel rewards is the first step. This step is to select the right program(s) for your company’s needs. Consider your most frequently visited destinations, preferred airlines, hotel chains, and your employees’ travel history. Here are some tips:
   
   a) Frequent Travel Routes: Choose programs that align with your company’s frequent travel routes. For example, if your business often flies to Delhi, joining an alliance with Delhicarriers might be more advantageous.
   b) Hotel Partnerships: If your employees frequently stay at specific hotel chains, explore their loyalty programs. These programs can lead to free nights, room upgrades, and other valuable perks.
   c) Credit Card Choice: Opt for a business credit card that aligns with your travel preferences. Look for cards that offer bonus rewards for travel expenses and have partnerships with airlines and hotel chains your company uses.

2. Create a Travel Policy: Implementing a clear and comprehensive travel policy is essential for efficient corporate savings. Your policy should outline guidelines for booking travel, such as preferred airlines and hotels, booking windows, and permissible expense limits. It should also encourage employees to use their designated corporate credit cards to maximise rewards.
3. Leverage Employee Personal Spending: Encourage employees to link their personal travel rewards accounts to their corporate bookings. This way, they can earn personal rewards in addition to the company’s rewards. Employees can then redeem their personal rewards for leisure travel or other expenses.
4. Pool Rewards Points: Many travel rewards programs allow organisations to pool points or miles earned by multiple employees into a single corporate account. This strategy can help your company accumulate rewards faster, making redeeming them for free flights or hotel stays easier.
5. Coordinate Booking and Expenses: Ensure that all corporate travel bookings and expenses are well-coordinated. Use a centralised system or software to track and manage expenses, making monitoring rewards accumulation easier and ensuring compliance with your travel policy.
6. Monitor and Optimise: Regularly review your travel rewards program strategy. Assess the effectiveness of your chosen programs, credit cards, and booking policies. If necessary, make adjustments to optimise your corporate savings further.

Get the Best Business Travel Rewards Programs

Corporate travel is a significant expense for many businesses, but it doesn’t have to be a financial burden. Your company can unlock substantial savings by strategically selecting the right travel rewards programs, creating a clear travel policy, and encouraging employee participation. 

The key is approaching travel rewards programs as a valuable asset that can enhance your bottom line. You can do this with the help of the dynamic travel management system of itilite. itilite is an advanced SaaS-based travel management company that lets you configure up to 15 hotel or airline loyalty program memberships for each traveler. Moreover, when travelers choose the most cost-effective travel option on dynamic, they get a part of the savings as a reward. 

Contact our experts now to know how itilite can help you maximise travel rewards!