Corporate Travel Budget
As the business world becomes more global, business travel budgets are also expanding, or in some cases being stretched to the limit. Air travel, especially, is on the increase.
There are ways to keep your corporate flight needs within budget.
One of the wisest decisions a company can make is to assign a travel coordinator. This person is responsible for managing all travel needs, keeping travel within company policy guidelines, and on budget. All employees should be aware of company travel policy so that they understand why certain budgetary decisions are made, or can request certain services or concessions according to special travel needs (e.g., need for planning time/space). Depending on the position, travel managers may do the bulk of the travel planning, including on-line ticket reservations, or they may liaise with a travel agent, outlining the company’s travel needs and budget limitations and allowing the agency to do the fine-tuning.
One of the simplest rules for saving money on air travel is to book early. Fares booked 14-21 days in advance are generally cheaper, some half the price. Of course, there are often last minute seat sales, but savings here are unpredictable and the variability turns travel planning into a haphazard art.
Another tip is to book a destination that is further than your intended destination, provided, of course, the longer trip is less expensive, which it often is. The passenger simply disembarks at the earlier destination. Although the airlines are not crazy about this strategy (because it means empty seats they could have filled), it can be a great savings for the company travel department.
Think about saving money while you’re spending money. How? Use a corporate credit card which collects air travel points or offers cash back. That way, while you’re spending money on a corporate luncheon by charging it, you’re also “saving” money by accumulating air mile points. Airlines will often allow you to use points to upgrade an economy seat to business class. Have your travel manager or travel agent research your bank’s air carrier affiliation.
And now to the big issue for many travelers – economy versus business. For smaller companies with smaller budgets, business class simply may not be a feasible choice for most travel. But even for a company with a sizeable budget, economy can offer real savings and a wise choice for short-leg trips. If the trip requires only a few hours in the air and the passenger has no pressing preparation needs (for a meeting at the destination, say), economy might be the right choice. On the other hand, if a passenger is on a very long flight and needs rest or preparation time, business class is the most accommodating choice.
Speaking of rest, one often-overlooked choice is the red-eye flight. These flights can offer considerable savings, sometimes of more than half the regular daytime price. This would be a time to use points to upgrade to business class, since you have saved on the flight cost.
Some business travelers are saving on flights by booking over a weekend and extending the trip by a few days. The extra days are not a business expense, of course, but they offer a brief time for pleasure or sightseeing on a business excursion. Some companies will spring for the cost of these extra days if it means substantial savings on the air travel.
If your company travels extensively in one particular region, find out if there are flexible multiple-fare tickets offered for that region, such as the all-Asia pass offered by one airline. If business contacts require visits to several cities in a region, this kind of pass is a big money-saver compared to booking individual flights to each place.
Naturally, each company will balance their travel requirements differently. Some may put comfort above costs; others may have to do the opposite. Travel agents can be very knowledgeable about travel savings or travel specifications for different class fares and welcome an opportunity to develop a client travel profile.
Please contact us for an appointment if you would like to discuss our Corporate Travel Programs. Ary Hernandez UNIGLOBE Ulti-Max Travel 703-707-0200
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