A Regular Travel Policy Review will save you money?
The travel industry is constantly evolving. New supplier discount plans, technological advancements as well as the rise of sharing economy (Airbnb) means that there are new opportunities to reduce travel costs.
To make sure these savings are reflected in your organisation’s net profit it is important to regularly review your travel policy to make sure they are incorporated where relevant.
1. Write a policy that suits your company
Each company needs to have a unique policy that is tailored for their specific business requirements – there are no blanket policies that will be suitable for companies big and small.
As well as cost-efficiency, include employee satisfaction and your relationship with travel suppliers.
2. Review and Set goals for cost-efficiency
You should be regularly reviewing your travel program in consultation with your travel suppliers. This will allow you to identify areas where your company can become more efficient.
The Finance and HR Departments shouldn’t be the only teams involved in revising your company’s travel policy. Other stakeholders can provide some very useful insights to help you design the perfect policy for your company e.g. the Sales Department.
Look at what’s driving your business travel costs and then set achievable goals to lower travel spending.
Lastly incorporate these into your revised travel policy.
3. Provide cost-efficient alternatives
Take advantage of the popularity of sharing economy companies such as Airbnb.
According to a Rocketrip report, business travelers can save up to 32% by booking a stay on Airbnb rather than a hotel. Incorporating such alternatives not only helps your company save money, but it also reflects a modern and flexible approach to corporate travel policy.
4. Policy control and measurement
When your revised travel policy has been finalised new controls must be incorporated into your travel booking process to ensure your new policy is followed.
Track spending trends to see what’s working and what’s not. Don’t forget to reward teams or employees that save.
5. Communication with employees
The revised travel policy must be clearly communicated to travellers and bookers.
Often this is done via the intranet or as a booklet.
Make sure your company’s travel policy is a part of an on-going conversation with your employees. If you’re making changes, implementing cost-saving initiatives, let them know.
6. Give employees an incentive to save
Give your employees a reason to save. To motivate your employees, you may consider offering a trip to the most cost-effective.
7. Lead by example
If your staff see that executives are making cost-sensitive decisions in relation to corporate travel, employees will follow.
What action do you need to take?
Now how do you incorporate all this into your own travel policy? Call Mettrex and we will start with a review and end with a policy.
At Mettrex Business Travel we work with our clients to ensure your company’s travel policy reflects the latest industry practices.
Want to find out how Mettrex can position your business for success? Email me jmartin@mettrex.com.au
If you would like more help please contact me via contact form below or call me on 1300 850 596.
