Managing Business Travel Expenses: 4 Quick Tips

Updated on November 22nd, 2021

Whether you are a sole proprietor or part of a major corporation, business travel is extremely important to business success. A recent study found that for every dollar that a company spends on business travel expenses, it gains $9.50 in revenue and earns $2.90 in profit.  However, with the price of flights and hotels on the rise, business travel costs can still be daunting, especially for smaller firms where every single dollar counts.  Here are four tips to help keep your company’s’ travel costs in check, and still get face to face to close the big deals.

Book Flights Early (but not too Early)

Your company cannot always plan when people need to travel. But whenever travel can be planned in advance, it is best to book flights early. How early? A recent study indicated that businesses could save up to 65 percent on airfare by booking their domestic flights seven weeks in advance (eleven weeks in advance for international flights). Interestingly, cost savings declines rapidly if a business traveler attempts to book a flight further out than these two timelines. While not all business travel can be planned seven to ten weeks in prior to execution, scheduling routine business travel in this manner can save companies some serious money.

Stay with Airbnb

Airbnb, the online home and apartment rental marketplace, can help business travelers cut lodging expenses considerably. On average, business travelers can save up to 37 percent on travel expenses by booking with Airbnb instead of standard hotels. Using an Airbnb property may help business travelers cut other costs further as well: staying in an apartment or home may reduce dining costs (if the Airbnb property has a kitchen), parking costs, or even internet costs. Airbnb has also created tools for small businesses – central billing applications. It’s a dashboard for companies to manage employee travel – making it easier than ever for firms to plan business travel using the innovative company. Even staying at an Airbnb during a conference works – just make sure you’re not too far from the action. But it can be good for when you want to sneak away at a conference.

Leverage Technology

Video teleconferencing technology has come a long way in the past decade. It’s made it easier and cheaper to conduct virtual meetings where people can be seen heard and present information seamlessly. Use of video teleconference technology in lieu of travel can help save companies up to thirty percent or more on travel expenses. While VTCs can’t replace of all face-to-face meetings, they can dramatically reduce travel costs for routine meetings. Additionally, they can even free up some time for key managers so they focus on other things.

Reap your Rewards

If you’re a business traveler, sign up and account for every airline, rental car, and hotel rewards program out there. Once you do, keep track of all of your points. Over the long term, you will be eligible for discounts, or even free airfare, hotel rooms or car rentals. Let’s say your company has many employees and books travel for them. Consider a policy where employees’ reward points on company-funded travel are transferred over to the company. This will help the company earn the same type of discounts as individuals get.

Business travel is one of the most important and productive activities your company does. However, if not managed properly, business travel can be costly. Scheduling air travel early, using Airbnb, and leveraging technology and rewards programs can all help to lower travel expenses considerably.  So don’t wait: use these tips to keep business expenses down, and get your deal makers back on the road.

William Lipovsky

William Lipovsky

William Lipovsky owns the personal finance website First Quarter Finance. He began investing when he was 10 years old. His financial works have been published on Business Insider, Entrepreneur, Forbes, U.S. News & World Report, Yahoo Finance, and many others.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More