Is travelling for work a big part of your job? If so, you’ll know that managing your per diem allowance effectively is key to keeping your expenses in check – without sacrificing the quality of your trip. Per diem allowances are designed to cover the costs of meals, accommodation and incidental expenses while you're away from home. But with a bit of strategic planning and some savvy choices, you can get much more out of your allowance than you might expect.
This blog will guide you through various techniques to stretch your per diem further, helping you make every penny count. Whether it's choosing the proper meals or finding cost-effective travel options, these strategies are about maximising value while maintaining comfort and efficiency while on the road.
Understanding your per diem allowance
What is a per diem allowance? In a nutshell, it's a daily amount allocated to employees to cover expenses incurred while travelling for work. This fixed sum is meant to simplify budget management for both the employer and employee by eliminating the need to keep detailed records of every expense. Typically, a per diem covers meals, accommodation and incidental costs such as tips and parking fees.
But why does it only cover certain expenses? The main goal is to simplify expense reporting and reimbursements. By only covering the essentials, per diem allowances cut down on the hassle of approving and checking every single expense. This approach makes accounting easier and lets employees concentrate on their jobs instead of worrying about every little cost.
Knowing what your per diem allowance covers is crucial to managing your travel budget effectively. It helps you plan how to allocate funds for different aspects of your trip, so you can make the most of your allowance without having to dip into your own pocket.
Making the most of your accommodation allowance
When it comes to business travel, where you stay can make a significant difference to both your comfort and your budget. To get the most out of your accommodation allowance, here are some tips to keep in mind:
Choose your location wisely
Staying in a central location might seem more expensive initially, but it can save you money on transportation costs to and from various points of interest. It also makes things much more convenient, which comes in handy when you have a busy schedule.
Look for value-added amenities
Hotels that offer complimentary breakfast, Wi-Fi or access to a business centre can provide significant savings. These sorts of amenities don’t just enhance your stay – they help you dodge those extra charges that can eat into your per diem.
Utilise corporate discounts and loyalty programmes
Many accommodation providers offer special rates for business travellers or rewards for loyalty. These can lead to better room rates and other perks like room upgrades or late check-out options, stretching your per diem further.
Maximising your meal allowance
Food expenses can quickly add up, especially when you’re in an unfamiliar location. To make the most of your meal allowance per diem, consider these strategies:
Set a daily budget
Divide your meal allowance by the number of meals you plan to have each day. This simple calculation helps you stay within your per diem and avoid overspending on any single meal.
Choose accommodation with kitchen facilities
Booking a hotel room or self-catering property with a kitchen allows you to prepare some of your own meals, significantly cutting costs.
Opt for combo meals or specials
Many restaurants offer lunch specials or combo meals that are less expensive than ordering items à la carte. These are a great way to enjoy a full meal without going over your budget.
Saving on mileage and transportation
Transportation costs can vary widely depending on the location and the length of your trip. To keep these costs in check, here are some practical approaches you can take:
Understand mileage allowances
If you're using your own vehicle, make sure you know the current mileage claim rates. This knowledge will help you calculate the cost of travel more accurately and claim back the appropriate amounts.
Use public transportation
In many cities, public transportation is not only more affordable – it’s more efficient, too. Investing in a day or week pass can be a great deal cheaper than paying for taxis or car rentals.
Plan your travel routes efficiently
If you need to travel to multiple locations, plan your routes to minimise backtracking and unnecessary detours. This planning can save both time and money.
Top money-saving tips when travelling for work
While managing your per diem allowances for food, accommodation and travel is crucial, there are other things you can do to achieve even more efficiency and savings on business trips.
Pre-plan your entire trip
Having a detailed itinerary before you leave reduces the likelihood of unforeseen expenses and helps you identify potential savings opportunities in advance. This could include booking all your meetings in a single location or identifying days when you can work remotely to save on transport.
Take advantage of travel rewards
Enroll in frequent flyer programs and collect points for flights and hotel stays. These rewards can be redeemed for upgrades, free nights or even future free flights, which can substantially lower the cost of business travel over time.
Keep digital records of receipts
Maintaining a digital log of receipts can make it easier to track spending and make sure you're fully utilising your per diem without going over. Modern smartphone apps – like Roomex – store these receipts and can even help categorise and analyse your spending patterns.
Stay connected for free
Avoid costly data roaming charges by planning ahead. Check if your hotel offers free Wi-Fi, and if not, consider purchasing a local SIM card for data. Many cafés and public spaces also offer free internet access, which can be a real boon when you need to work on the go.
Schedule meetings strategically
If possible, schedule multiple business meetings in a single day to minimise stays. This can reduce the number of nights you need in a hotel, thus saving on accommodation costs significantly.
Carry a refillable water bottle
Staying hydrated is essential, but buying bottled water frequently can add up. Most airports and public areas have water refill stations, allowing you to save money and stay hydrated for free.
Apps and tools to simplify per diem management
Managing travel expenses doesn't have to be a headache. With Roomex, you can streamline the entire process, from booking to payments, and even track your team while they're on the road.
One-stop booking and payment
Roomex brings all your hotel bookings and payments together on one easy-to-use platform. You can manage everything from one place without juggling multiple systems or websites. And with the most extensive inventory of workforce-suitable accommodations, including hotels and apartments, finding the right place at the right price is a breeze.
Stay on top of your team's whereabouts
Thanks to RoomexStay's live Duty of Care map, managers can keep track of their staff’s travel history, contact details and upcoming trip information. It’s like having a dashboard that provides peace of mind – by knowing exactly where everyone is and that they’re safe.
Custom travel policies made easy
Getting started with Roomex is simple and quick. You can set up your travel policies in no time, ensuring that all bookings align with your company's needs and budget. Your employees will enjoy access to an unrivalled range of accommodation and receive priority support from travel experts.
Control your travel spending with RoomexAnalytics
Gain clear insights into your travel expenses with RoomexAnalytics. This tool shows you real-time data on policy compliance and where your money is going, helping you make informed decisions and keep costs under control.
Simplify expense claims with RoomexPay
Say goodbye to the hassle of expense management. With the RoomexPay card, your team can pay securely and simply. Just take a picture of the receipt using the Roomex app and the expense is claimed instantly – no more lost receipts or delayed reimbursements. This saves your finance team time, prevents false claims and reduces the risk of overspending on projects.
Priority problem resolution
If any issues pop up, whether during booking or while on the road, Roomex’s support team is just a phone call or live chat away. They’re always ready to help sort out any problems, so that every trip runs smoothly from start to finish. With Roomex, you can take the work out of managing travel expenses, giving you more time to focus on what really matters – your business.
Wrapping up
Throughout this guide, we've explored numerous strategies to make your per diem allowance stretch further on business trips. Whether it's selecting the most suitable accommodation, managing meal expenses efficiently or making smart choices about transportation, each tactic contributes to a more budget-friendly and productive travel experience.
By planning ahead, leveraging company discounts and utilising modern tools, you can maximise the value of every penny allocated for your trip. These tips not only help you keep your budget on track but also make your travels smoother and less stressful by simplifying how you handle your money.
