Markets are becoming more international, distances are shrinking, more and more executives travel more frequently on overseas trips; travel expenditure is an area of potential waste that once brought under control, can significantly reduce your cost burden.
Check the necessity for the journey
Check the reason for a journey, check that it has been planned properly and that there are clear new objectives. Check that existing objectives cannot be attained by means of cheaper communication such as telex, telephone or fax.
Keep car travel down
If someone travels 300 miles in a round trip it will take pretty well all day. One call in the middle of the journey may prove to be productive but don’t forget that the other seven or eight hours’ driving has achieved very little. So plan journeys in such a way that the maximum benefit is gained from the time spent behind the wheel.
Choose a reasonably priced hotel
Owing to the development of national and international hotel chains, businessmen tend to select one particular group, perhaps because of its high standard of communication and service. But this can be very expensive. By selecting a less prestigious hotel, the money saved can pay for an extended stay or a return trip. Many country hotels offer very good home comforts and service at a quarter of the price.
Choose the right accommodation for the employee
Hotel selection should depend upon the job the member of staff will perform. There is obviously a minimum standard that should apply to all employees but, beyond that, any increment in cost due to higher standards should be justified according to the extra facilities the job requires. If it is a question of a quick overnight stay, breakfast in the morning and away to work by 7.30 am, there is no point in paying a room rate that includes something for the use of the swimming pool, tennis court, sauna etc. Longer stays, where your hotel is your office base and where you effectively set up home for a few weeks, may well justify the higher room rates.
Choose the location of your hotel carefully
Occasionally the location of a hotel can cause you to spend more on travel, eg taxis to and from your clients’ offices.
Negotiate discounts for hotels
Most hotel groups offer group discounts. However, be aware that the discounted rate may still exceed the rates of alternative acceptable hotels. The discount per se is not justification for using a particular hotel chain.
Compare the cost of hotel meals with local restaurants
Once in a hotel don’t let yourself become a captive diner who pays through the nose for hotel meals. Down the road you may get as good a meal in very comfortable surroundings for half the price.
Observe the cost of hotel telephones
Some hotels charge a high premium for use of the telephone. Telephone costs are high enough anyway so don’t add to them by paying an enormous premium to the hotel.
Use credit cards
When you take travellers’ cheques the cost is debited from your bank account before you actually spend the money. By using credit cards (carefully controlled) you pay for your travel expenses several weeks later.
Pay employees’ credit card subscription charges
By your paying the annual fee, the employee can afford to have at least one credit card to which his expenses can be charged. The employee will find this more convenient but of course his claim for expenses will go through your normal scrutiny. In the meantime your company has saved bank interest.
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