Travel costs are increasing exponentially, with airfares, transportation, and hotel rates all seeing significant upsurges in 2022 and expected further increases in 2023. While businesses put several measures in place to manage their money and keep costs low, it’s not always possible when some expenses are out of their control. As challenging as it can be to keep travel costs to a minimum, you might be able to save money by taking some of the following actions.
Switch to Corporate Housing
Current data shows hotel rates increased by 18.2% in 2022 and 8.2% in 2023. Not all businesses can avoid providing accommodation for their employees, which means they must come up with an alternative option if they want to keep these costs manageable.
While the costs associated with corporate housing are also rising, the same report suggested that they aren’t increasing at the same rate. Business owners might be able to save money by booking their employees into fully-furnished corporate rentals as a form of affordable short-term accommodation.
Take Advantage of Technology
In the past, a lack of appropriate technology meant we had to travel to meet people when we needed to discuss important business matters. COVID-19 paved the way for more innovative meeting options, such as video calls.
The same important topics can be discussed, and you can both be sitting in meeting rooms, but you just aren’t in the same location. Holding video calls and utilizing video tools and screen sharing might save businesses tens of thousands of dollars in travel costs while achieving the same results.
Plan Trips In Advance
Many meetings are planned at the last minute, which is generally not a problem when they are held in cities in which all involved parties live. However, if you have to travel out of the city or to a different state or country, the costs can start to add up.
Last-minute airfares can be expensive, and you can expect to pay an average of $220 more for an airfare zero to six days before a flight. However, if you book 21 to 115 days before the flight, you can expect your airfare to be within 5% of its lowest price. If you can’t plan that far in advance, try to book within seven to 13 days of your flight. Ticket prices are typically $135 less than last-minute airfares.
Use Public Transport
Rental cars can be expensive, with companies spending several hundred dollars on cars to take their employees to and from various destinations. While rental vehicles will be necessary for many trips, they won’t be required for all.
For short trips, encourage the use of taxis, buses, rideshare services, and other public transport services. A monthly bus pass is an average of $58, while the average taxi fare can be around $36. If your employees are traveling to meet with employees at other businesses you own, consider arranging for them to be picked up by business vehicles to save even more money.
Most businesses understand that costs are rising across the board, but that doesn’t mean they can’t still save money. Book corporate housing, utilize public transport and plan your trips in advance. You might then notice significant savings.
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