When it comes to business travel, cutting costs without cutting corners is no mean feat. It calls for a keen understanding of procurement skills to turn those fixed travel costs into flexible savings opportunities.
In this guide, we’ll explore essential strategies for saving money while making your travels more efficient and comfortable. From booking in advance to saying yes to off-peak travel, these tips are designed to provide you with a toolkit for smarter travel planning.
How to save money before business travel
Start planning early
It might seem obvious, but one of the simplest and most effective strategies is to plan and book your travels well in advance. Getting your plans sorted early can lead to significant savings. Airlines and hotels often offer the best rates to early birds, so mark your calendar and book as soon as you can to lock in those low prices. For example, if you’re attending a conference, you might want to book ahead to find your preferred room type at a cheaper rate. You may wish to request a quiet area to hold meetings while you’re there, too.
Travel off-peak
Another good way to cut costs before you set off on your travels is to book during less popular times. Hotels, airlines and other travel operators usually lower their prices during off-peak hours and seasons to encourage more bookings. As well as saving on costs, you’ll also find there are smaller crowds and often a better standard of service.
Perfect your negotiation skills
Don’t shy away from negotiating. Whether you’re asking for a group discount, better cancellation terms or extra perks like free Wi-Fi, a little haggling can go a long way. Remember, the answer is always no if you don’t ask. It’s also important to keep in mind that negotiation is a two-way street. Consider what you can offer the vendor in return for a discount or extra perks. This might include a commitment to a certain number of bookings or promoting their service within your business network.
Build relationships
Sometimes, it's not what you know, but who you know. Cultivating relationships with travel vendors can open the door to exclusive deals that aren’t available to the general public. It’s also a great way to provide a more personalised service. Aim for quality over quantity – focus on making your bookings with fewer providers to secure volume discounts and build stronger, beneficial relationships.
Create a comprehensive travel policy
A well-defined travel policy helps everyone stay on budget and stick to company guidelines. Here’s what is should typically include:
- A clearly defined purpose, outline of who the policy applies to and under what circumstances
- An approval process
- Budget and spending limits
- Booking procedures
- List of preferred vendors and accommodation
- Guidelines and safety measures
- Expense reporting process
Make sure you're crystal clear on your company's travel policy. Understanding the rules inside out means you can make bookings that are not only cost-effective but also compliant, avoiding any costly misunderstandings. The travel industry is constantly changing, so it’s a good idea to periodically review your travel policies and providers. This ensures you always get the best deals and services that meet your current business needs.
Use technology to stay informed
There are lots of platforms and apps designed to simplify every aspect of travel procurement, from booking to expense tracking. Roomex provides an all-in-one travel and expense platform, integrating all hotel bookings and payments into one platform and keeping track of staff with a live duty of care map.
Roomex offers several other key products and features tailored for business travel needs:
RoomexStay:
- Searches over 1.2 million hotels from 35 sources to find the best accommodation
- Built-in travel policy checks and dedicated workforce filters
- Exclusive rates, ensuring cost-effective options for your team
RoomexPay:
- Customisable expense solution for staff on the road
- Covers hotel allowances and other travel-related expenses like Wi-Fi, parking and meals
- RoomexPay card with auto top-up and easy receipt capture
RoomexAnalytics:
- Automatically tracks every booking and expense
- At-a-glance dashboard and custom reports to analyse travel spending
- Quick reporting on any element of your travel spend in seconds
Projects and meetings:
- Supports booking of long stays, complex trips and team gatherings
- Expert assistance to source the perfect accommodation or venue on time and within budget
- Provides tailored support for specific project or meeting needs
Additional support and services:
- Dedicated support team to assist with seamless booking and easy check-ins
- Rate negotiation and cancellation charge recovery to maximise savings
- Reservation checks and other services to ensure your travel and expenses work smoothly
Sign up to loyalty programmes
There are several business travel loyalty programmes which are popular among business travellers, covering airlines, hotels and other travel services.
Here are some of the most commonly used ones in the UK:
Airlines
British Airways Executive Club
Earn Avios points that can be redeemed for flights, upgrades, hotel stays and car rentals. Offers tiered membership levels with increasing benefits.
Collect miles that can be used for flights and upgrades, with additional benefits for higher tier members.
Hotel chains
Earn points at hotels like Holiday Inn and Crowne Plaza, which can be used for free nights, flights and more.
Provides points for stays at Hilton hotels and partners, with benefits such as free nights and room upgrades.
Offers points for stays across its extensive network of hotels, with redemption options for hotel stays, travel experiences and other perks.
Car rental companies
Includes benefits such as priority service and the ability to earn points for every qualifying penny spent on rentals.
Earn points on rentals, with rewards including free rental days and vehicle upgrades.
Credit card rewards
American Express Platinum Card
Offers extensive travel benefits, including access to exclusive airport lounges, comprehensive travel insurance and points redeemable across a range of travel-related expenses.
Barclaycard Avios Credit Cards
Earn Avios points on everyday spending, which can be redeemed for flights, hotels and car hires.
Tips for saving money during business travel
Stick to preferred vendors
If you’re unable to book in advance, it’s best to lean on relationships with preferred vendors to make the most of your business travel arrangements. Doing so can still secure you special rates and other loyalty perks, even at short notice.
Encourage alternatives to car hire
It can be tempting to hire a car for the sake of convenience on every business trip, especially when you’re looking for a straightforward way to get from point A to point B. However, alternatives to car hire not only prove to be more economical but also faster than private car hire. For instance, hopping onto a bus will be quicker and cheaper than searching for a parking space and downloading a new app just to pay for it.
Here are some top cost-effective alternatives to renting a car:
Public transportation
In most major cities, public transport systems are extensive and highly efficient, often offering the quickest way to get around town. Trains, buses and metros are usually much cheaper than hiring a car and provide direct routes to many major destinations, including business districts, airports and conference centres. Using public transport reduces your carbon footprint as well, aligning with any eco-friendly policies your company may have.
Carpooling
Carpooling with colleagues not only cuts down on costs but is also a nice way to bond with teammates. When attending the same event or meeting, sharing a ride is a practical solution that minimises the number of vehicles needed, reduces fuel costs and lowers parking expenses.
Airport shuttles
Many airports offer shuttle services to major nearby centres or hotels, which can be a cost-effective and convenient option for travellers. These shuttles typically operate at regular intervals and are significantly cheaper than private taxis or car hires. More often than not, you can book shuttle services in advance to ensure availability and help plan travel schedules more efficiently.
Ridesharing services
Ridesharing options like Uber and Bolt provide a flexible alternative to traditional car hire and taxis. These services often offer competitive pricing models, including shared ride options that further reduce costs. They can be especially beneficial in areas where public transport may not be readily available or during late hours when other services are less frequent. Ridesharing apps are another way to eliminate the need for parking, which can be expensive and hard to find in dense urban areas.
Save on eating out
Food expenses can quickly add up, but there are several ways you can avoid munching your way through all your budgeted meal allowance in the first couple of days:
- Try to book accommodation that includes self-catering facilities so you can cook your own meals or heat up something ready-made from a local supermarket.
- If self-catering options aren’t available, pick somewhere that includes breakfast with your stay.
- Avoid tourist traps by asking locals for recommendations on where to eat.
- Do your own research and figure out the nearest affordable options close to where you’re based.
- As much as it can be tempting after a long day, try to avoid room service or raiding the minibar – the prices are usually extortionate.
- Know what your daily food budget is before you start spending so you don’t have any unpleasant surprises when you go to claim back expenses.
Wrapping up
Getting the best deals on business travel is more than just a cost-saving exercise – it's an essential skill that will improve your overall travel experience and significantly contribute to your company's efficiency.
Every successful travel plan starts with understanding your needs and aligning them with the right strategies. Using tactics like negotiating with vendors, choosing the right time to book and using technology will help to make each trip as cost-effective and beneficial as possible. Keep these tips in mind, and you’ll find that securing the best travel deals becomes second nature.
