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, organisations seek ways of how to reduce travel costs in a business 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 Reduce Travel Costs in a Business?
Companies can focus on a few key strategies on how to save business travel cost. 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. Â Incentivisation
Incentivisation 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. Therefore, you can easily understand how to reduce travel costs in a business.
3. Unused Flight Ticket Management
Flight ticket management is a key step in how to save business travel cost. itilite establishes a centralised system for tracking all purchased flight tickets, maintaining comprehensive records of their status, usage, and expiration dates. This centralised 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 utilise the tickets effectively.
The platform suggests strategies to maximise the value of unused tickets. This includes recommendations for utilising 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 reduce the financial losses associated with unused travel credits significantly.
4. Technology Helps in Automatic Expense Fraud Detection
itilite uses AI-driven technologies to scrutinise 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.
Fraud detection is key to understanding how to save business travel costs. The system analyses 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 revolutionises your current travel and expense dashboards by continuously streaming insights that uncover significant corporate travel savings opportunities. The software does so by:
Mastermind uses AI and machine learning to study your company’s travel and expense (T&E) data. It gives tailored advice based on your company’s rules. It also shows how much money you can save and ways to reach your T&E goals.
The tool helps guide better spending habits. It also compares your T&E spending with those of others in the industry.
6. Analytics and Reporting
Analysing data is essential for understanding how to reduce travel costs in a business. 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 analysing 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.Â
- Traveler Spending Patterns: Monitoring travel spend helps identify ways how to save business travel cost. 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.
Manage Your Travel Expenses with itilite
We hope this blog has been insightful about how to reduce travel costs in a business. Our platform isn’t just a one-size-fits-all solution. The corporate travel management solution customises 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.
