Travel plays a vital role in the success of small businesses, enabling them to establish and nurture connections with customers, clients and employees. However, increasing travel expenses can significantly impact small businesses more than larger ones due to limited resources. Fortunately, there are effective strategies to minimize costs. Here are some actionable tips to help economize both time and money on travel.
- Create a Business Travel Policy: Establishing a corporate travel policy ensures control over travel expenses and streamlines the reimbursement process, helping to manage budgets effectively. The policy should include guidelines specifying employees' responsibilities when booking and paying for business-related travel, spending limits, and acceptable expenses. It should detail travel allowances, preferred travel partners, per diem allowances for dining and essentials, and travel budgets for transportation. Additionally, the policy should outline the process for expense reimbursement.
- Communicate Travel Policies: It's essential to communicate travel policies to employees to ensure they understand what is expected of them. Putting the policies in writing and making them easily accessible can help avoid confusion and save time in the long run. Clear communication upfront will assist employees in planning their travels and save time when reviewing expense reports.
- Consolidate Appointments: Encourage employees to schedule appointments with multiple clients in one trip to save time, improve efficiency and reduce costs. Consolidating appointments reduces the number of individual trips, significantly lowering transportation and accommodation expenses and reducing environmental impact.
- Plan and Book Ahead: Planning trips in advance is crucial for saving money on business travel, as prices can increase closer to the travel date. Early planning also allows time to secure preferred departure times and providers. For example, the 2024 Air Travel Hacks Report recommends booking domestic flights in the UK at least five months in advance to save 35 percent compared to last-minute bookings and international flights eight to 23 days prior to departure to save up to eight percent.
- Support Bleisure Travel: Bleisure travel involves adding personal travel at the beginning or end of a business trip. This allows employees to schedule travel during less expensive times, reducing costs and providing much-needed wellness breaks. Additionally, bleisure travel can enhance employee satisfaction and retention, helping small businesses compete more effectively against larger companies.
- Join a Hotel Loyalty Program: These programs offer benefits like discounted rates, rewards points, free Wi-Fi, local transportation and early check-in or late check-out. Look for programs tailored to small businesses that provide guaranteed discounts, transparent rates and detailed spending reports. Focus on frequently visited destinations to ensure the hotel company has properties in your primary travel locations, with amenities like meeting rooms, fitness centers and business equipment. Consider hotels near public transit or offering free shuttles to reduce transportation expenses. These programs also enable businesses to earn points for future travel, further reducing costs.
- Join an Airline Loyalty Program: Like hotel loyalty programs, airline loyalty programs offer rewards such as discounted fares, free changes or cancellations, access to airport lounges and priority boarding. These programs can enhance the travel experience by making it more efficient and cost-effective. They also allow businesses to accumulate points that can be redeemed for future travel to reduce travel expenses.
- Spend Less on Meals: Stay at hotels that offer free breakfast or social hours with complimentary appetizers. These are great for networking with new people or connecting with clients. For longer stays, consider accommodations with kitchen areas to save money on dining out, which can also support a healthier diet.
- Use a Corporate Travel Credit Card: Corporate credit cards offer convenience, transparency and rewards. They allow business owners to set credit limits for each user to control expenses and simplify billing. Additionally, the rewards and benefits can help offset travel costs and provide perks for business owners and employees. For instance, the IHG One Rewards Premier Business Credit Card benefits employees and business owners with points that can be used for personal or business travel.
- Monitor Spending with Supplier Tools: Dedicated accommodation platforms enable employees to book hotel stays and allow business owners to oversee and manage spending. For example, IHG Business Edge offers a dedicated portal with a tracking tool for analyzing current and year-to-date hotel spending data.
- Explore Alternative Transportation: Consider using alternative forms of transportation such as ridesharing services, bikes, public transit or trains. For instance, Kimpton Hotels & Restaurants offers complimentary bikes to its guests for a convenient, affordable and healthy way to get around. Train travel is another cost-effective and environmentally friendly alternative to short-distance flights. Using buses or carpooling options can also reduce travel costs and environmental impact.
- Choose Eco-Friendly Hotel Brands: Support hotel brands that actively take measures to reduce their carbon footprint and offer sustainable options. This approach not only aids global environmental efforts but also resonates with employees and clients who value sustainability and responsible business practices. This is particularly relevant in the UK, where a survey published in 2022 revealed that the proportion of travelers considering staying in eco-friendly hotels had risen to 37%.
Lastly, consider working with a trusted travel advisor who understands your needs. IHG is among the first hotel companies to establish a program for small and midsize enterprises, which Global Traveler has recognized as the Best Small-to-Midsized Business Program for five consecutive years.
It features an easy-to-use online portal that consolidates important travel data, such as hotel spend and room nights. In addition, the program offers a guaranteed discount for direct bookings, accelerated loyalty status and access to exclusive promotions. With a vast network of over 6,000 hotels in more than 100 countries, IHG Business Edge ensures that you will find the right hotel for your needs, no matter where your travels take you.
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