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5 ways your business can reduce the cost of corporate travel

Posted: 17th August 2018

When it comes to reducing costs and making savings on corporate travel many businesses think they are already demonstrating best practice.  However research has shown that this is not necessarily always the case. So with the help of Edinburgh based travel management company TRAVELEADS we have compiled a simple check list of 5 processes that will ensure your business isn’t overspending or compromising on traveller safety.

Does your organisation have an effective travel policy in place?
An effective travel policy enables you to apply intelligent purchasing to all transactions.  Based on your company’s historical travel information your travel policy should be tailored to fit your business travel requirements.  Your travel policy should be reviewed and updated (if necessary) on a regular basis, taking into account changes within your organisation and within the travel industry.  A clearly defined travel policy will also help with your duty of care requirements, and will ensure your people are purchasing fully bonded travel solutions.  By implementing a corporate travel policy you are protecting your business and your people.  For any policy to be effective it has to be implemented properly.  Eliminate ambiguity and human error by installing the latest self-booking technology, any non-compliant reservations are immediately suspended and the transaction is put on hold while authorisation is obtained from your organisation.  A well thought out travel policy should serve as the foundation for all of your travel procurement processes.

Do you have full visibility of overspend in ALL areas?
Having full visibility of areas where overspend is occurring will help you to identify where savings can be made in future.  Technology exists that will show you the lowest priced options that were available, and whether or not these options were taken by your people.  It can also provide you with reports hi-lighting areas where any overspend occurred.  These prompts will alert you to the fact that revisions to your company travel policy may be required to prevent future losses.  When you appoint a TMC to manage your corporate travel they will regularly review your account to ensure any overspend is immediately identified and reduced.

Are you consolidating your spend and maximising discount opportunities?
If you are currently booking through a variety of channels you are diluting your travel spend.  By appointing a single travel management company your spend is more concentrated, this increases your buying power and allows you in some cases to negotiate discounted rates exclusive to your business.  For example, if you have regular need of accommodation in a specific city, identify the most suitable hotel choice and then channel all of your business into it.  This will give you more bargaining power when it comes to negotiating discounts.  By appointing a TMC to look after your travel arrangements you benefit from their substantial buying power combined with your own, this can result in significant savings.

Are you making all your reservations through one channel?
If you are booking various elements of your travel through different channels, not only are you reducing your buying power, you are also losing overall visibility of your travel – it is now that you are at the greatest risk of overspending.  When you install an on-line booking tool provided by a TMC your people still get to book their own travel, only in a significantly reduced amount of time.  These booking tools also promote cost saving options, recording all transactions accurately in one easy to find place. In the event of an emergency you can identify who is where and who may be affected.  This will help you to respond quickly, taking the necessary steps to get your people home safely.

Are you recognising and rewarding your travellers and travel bookers?
Every time a traveller or a travel booker chooses the most cost effective option they are saving the company money.  Over the course of a year these savings can really add up.  By incentivising your staff to deliver further corporate travel savings across the company you could significantly reduce your overall spend.

If you would like help creating or reviewing a corporate travel policy, or need advice on self-booking travel technology or rate negotiation TRAVELEADS would be delighted to offer you a free, no obligation, travel check-up.  Last year TRAVELEADS delivered savings of over £8 million to their clients by reducing unnecessary overspend. Please contact TRAVELEADS on 0131 718 4000 or via : corporatesales@traveleads.net to arrange an appointment.

 

 

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