Business trips can be great for forming company relationships but can be very costly, especially for small businesses operating on a limited budget. Spending on business trips can really get out of hand when businesses don’t set money-saving policies. Here are several things your company could try to save money on business trips:
Use Public Transport
Flying is mostly necessary for overseas travel. But once your employees are in the country, instruct them to use public transport to save a lot of money. This might not always be possible. But where public transportation is safe and widely available, like Europe and Australia, it’s both affordable and comfortable. Let employees use vehicle rentals or cabs only when public transportation isn’t an option.
Combine Airfare and Car Rental
Another way to cut back on travel cost is combining airfare with renting a car at the destination. This is ideal for domestic travel. Not every airline does it. However, a significant number of travel packages now include a flat rate for the airfare plus renting a car for a handful of days.
This might be an ideal option in places like the U.S. It’s also recommended in places where public transportation is simply awful, like India or Indonesia.
Ditch Hotels in Favour of Budget-Friendly Accommodation
Accommodation can really eat up the budget on overseas business trips. But companies don’t have to rely on expensive hotels for travelling employees. There are many cheaper alternatives like apartment rentals, homestays, hostels, motels, or even house sitting to name a few. Consider options like cheap accommodation Geelong to cut back on costs significantly.
Limit Luggage to a Carry On
Unless the employees will be overseas for months on time, there’s no need to spend hundreds of dollars on extra luggage. As business trips are usually short, instruct employees to just take their carryon luggage to avoid cargo charges.
Carryon luggage can be as big as a backpack or a briefcase with plenty of room for clothes. This can also eliminate the hassle of travelling. Employees won’t have to spend time and money looking for lost luggage when there isn’t any.
Book Economy Seats
Employees may not always like it, but booking economy seats is the best for the company budget. Choose economy plus or business class at best. First class travel is really not recommended unless the company can really afford it. If the business is on a budget, then splurging money on first class air tickets is definitely not the way to go.
Be Frugal on Travel Allowance
Do be careful when entrusting an employee to a company credit card to buy food and necessities while on a trip. This can easily lead to overspending and waste. The employee, when in a foreign country, may not even know they are spending too much at a restaurant because of currency exchange differences.
To avoid an overspending scenario, give the employee a strict travel allowance. It’s better to compensate any expenses the allowance doesn’t cover later as this gives the company some leeway to review. It’s much harder to recover money that’s already spent.
In addition to trying the above, also set a clear travel policy for work related matters. Employees should know they are travelling for business and not personal pleasure. When setting budget limits, make sure to keep them realists. The last thing your company needs is an employee stranded in a foreign country with no money.