Business travels are something that is inevitable and every business spends a lot of money for it each year. For some business, they need to have a special budget allotted for travels. But there are some ways following which will help businesses to save a lot of money on business travel. The following are some tips for reducing costs on business travel.
Know the cost: Your business travel cost is not just the airline ticket. There are additional fees. Due to the extra charges like fuel surcharges and drastic oil prices, the base fare of airline ticket has also increased. However, there are rivals amongst various airlines. It is a good idea to do a market survey and negotiate with your airline partners for a better deal on your total spend and not just the base fares.
Study the data: As said, the airline costs take up the major share of your business travel budget. You must use data carefully as you give your information to the airlines. Give proper information about your travel habits and spend to the airline partner so as to get a good discount, based on your travel patterns, class of seats purchased, volumes, and routes etc. for effective negotiations.
Alternative airlines: As a buyer, if you do a proper market research you will find a remarkable difference in the average ticket price between various airlines. To get the best possible deal and service, it is recommended to keep a track of the average ticket prices. Also, consider the non-traditional airlines like low-cost carriers to save money as well as increase your level of supplier competition.
Contract monitoring: For keeping your business travel cost down, you can have a corporate contract with airlines. Such contracts are usually signed for two years. Thus, while renewing your contract re-consider the changes in your business travel patterns and negotiate with the airlines to adjust their capacity. And to do so, you need to monitor the contract and communicate with the airline partner on a regular basis.
Cost control: Finally, you need to control your costs to cope with rising economy. Use non-refundable and restricted tickets as they will reduce the airline ticket costs. Also, reduce premium class use and use online booking tools and make advance booking for better rates. If possible, consolidate trips to cut back on your total number of flights and when appropriate, you can use alternatives for your business travel like video-conferencing t6o save both time and money.