Face-to-face meetings and industry conferences are irreplaceable in building relationships and staying competitive. Despite the undeniable need for business travel, flights, hotels, and transportation quickly add up, especially during last-minute bookings.
Cost control tactics can stop these costs from spiralling out of control and ruining your budget. These travel expense tactics will help your employees keep costs down on the go and contribute to better financial planning and budgeting.
A clear set of travel policies will simplify employee travel and remove some of its stress. Specify your preferred airlines, car rental companies, and hotels based on negotiated corporate rates. Ensure employees utilise these vendors to capitalise on their discounted rates to make travel cost-effective.
You should also clearly outline the travel booking procedure. To streamline the process, choose a designated platform or travel management company. This centralisation can allow you to negotiate favourable terms with your preferred suppliers.
Defining your expense categories and establishing reasonable spending limits is also important. Employees should have clear guidelines on budgetary constraints to cover spending categories. If the policy is clearly communicated to the entire company, there should be uniform understanding and adherence.
As mentioned above, centralising travel booking can be a major factor in managing travel expenses. Handling everything through a centralised platform or travel management company will give your company more control over expenses.
It also ensures employees will stick to established, cost-effective travel policies. Adhering to travel policies will make approvals easier, reduce the chance of rule-breaking, and make reporting more accurate. Centralised travel data allows your finance team to identify patterns and cut costs.
Hotels and airports often overprice dining and entertainment. Encouraging employees to pack their own food and beverages can reduce their dependence on overpriced options, saving money and time.
Companies can also point employees toward authentic local restaurants that offer budget-friendly meals. Meal planning is another healthy option that allows employees to avoid impulse spending.
When travelling, there are options for free or discounted entertainment. City tours, museums, parks, and other great options can enhance a trip and make it memorable without incurring additional costs.
It's easy for employees to get carried away, especially when travelling abroad. They want to explore a different culture and maximise their experience outside of work. There are several ways of having a good time responsibly.
Promoting a culture of responsibility and transparency among employees will go a long way in controlling costs. If everyone knows that frugal, sensible behaviour is company policy, they will be more likely to make choices like meal planning and low-cost entertainment.
Employee training programs that foster a positive culture of cost-consciousness and compliance are a good option for encouraging responsibility. Culture comes from the top down, so employees must see that every business member takes cutting costs seriously.
Loyalty rewards can benefit cost-effective corporate travel. Companies should sign their employees up for loyalty programs from credit card companies, airlines, and hotels, particularly those linked to places they often visit.
Ensure that corporate credit card use raises points or miles for every work-related expense. Companies can then plan how to redeem these rewards based on their upcoming travel needs, maximising their value.
Choose providers that offer elite status through loyalty programs with exclusive perks. Employees will appreciate the enhanced overall travel experience. Taking advantage of partnerships, bonus promotions, and co-branded credit cards can lead to exclusive benefits and faster accrual.
Regular audits are essential for effective travel cost control. Finance teams should establish a routine schedule for these monthly, quarterly, or annual reviews to identify and address discrepancies promptly.
Focusing on corporate travel policy compliance during audits ensures that employees stick to established travel policies. Deviations can be easily spotted and addressed with prompt action. To allow for detailed analysis, categorise expenses based on departments or projects. Individuals could also have their profiles so specific areas for improvement can be pinpointed.
An automated expense tracking system will provide real-time insights into these spending patterns. Centralised automation will streamline the auditing process, allowing for a proactive approach to financial management.
Summit's Employee Expense Management offers companies an intuitive, centralised system for managing travel expenses effectively. Your company's travel policies will be part of the system, ensuring compliance.
Your finance team will benefit from Summit's real-time insights, providing instant access to reports highlighting areas performing well and those needing improvement. Employees will also benefit from its ease of use, simply scanning their receipts on the go before their transaction details are automatically captured and processed into expense reports.
If you want to maximise your travel expense efficiency, please contact us to talk to a team member, book a demo, or ask us any questions about Summit's Employee Expense Management.