5 Ways to Cut Business Travel Costs

As a travel manager, you’re no doubt well aware of how critical corporate travel can be to your company’s business. I mean, if the title of this article had been “5 Reasons to Stop Business Travel,” you’d probably be pretty bummed out, since that would put you out of a job! Lucky for you, the Big Boss at your company already knows how important employee business trips are – that’s why he hired you!

The fact that your company acknowledges the need for corporate travel, however, does not mean that they’re happy about all the money it’s costing them. Thankfully, there are things you can do to decrease costs. Trust me – your CFO will thank you. Read on to find out some simple tricks to help you cut down on business travel expenses.

  1. Plan like a pro

Scheduling your employees’ trips ahead of time can save you a lot more money than you think. If you book flights over a week prior to departure, you can help save your company more than $100 per employee plane ticket.

In addition to scheduling in advance, you can also save money by considering the specific time you have your employees travel. You’ll want to avoid the dates of major events like London’s Fashion Week, for example. Same goes for spring break – try to avoid it (unless you’re eager for an “employees gone wild” sort of trip), and work around the specific dates of spring break. I know, I know, this isn’t a perfect world, and you have to allow for last-minute needs. But when you can, booking in advance and being careful about timing is a must.

  1. Make saving a win-win

If you have kids, you probably know how well the rewards system works with them. Rather than focusing on the punishment your child will get every time they break a rule, offering them a treat each time they do something good makes them feel proud and accomplished for good behavior.

Newsflash: adults are just like kids. We like to be rewarded too – whether in the form of praise or free stuff. That’s why rewarding your employees for saving money instead of punishing them for spending too much can be wise. Face it – your employees don’t care about saving your company money. They need an incentive. There are different ways you can go about this. You can choose to set a specific budget for your travelers, and if they spend less, give them credits for future trips. Alternatively, you can allow your travelers to keep a percentage of whatever they save. That will help keep them stay within budget without making them feel like you’re cheaping out on them.

  1. Perfect your policy

Establishing an effective corporate travel policy is no easy feat. There are tons of things to consider, including booking flights and hotels and setting an allowance that makes sense. Check out the travel policy you currently have in place, and decide if it needs improving. Make sure everything is laid out clearly so that your travelers know everything they need to know in order to stay in budget.

  1. Set up pre-approvals

How many times have you seen employee trips being canceled and money being wasted? Probably enough for you to know that a good pre-approval system is key. If you set one up, you’ll be able to save your company money on unnecessary costs. Make sure all employees understand who they need approval from for travel, so you can avoid canceled trips.

  1. Get smart with travel tech

Your phone’s smart, your watch might be smart, (hopefully you’re smart), now it’s time your travel management processes be smart! Gone are the days of pretty much anything manual. By using travel management technology, you can do everything I mentioned above in a fast, simple way. A travel management platform will help you plan business trips, set clear budgets, establish a pre-approval system, and come up with an optimal travel policy.

Check out Arbitrip’s business travel program to get you started on decreasing business travel costs today.

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Top 5 Business Hotels in NYC

Top 5 Business Hotels in NYC

If a free trip to the city that never sleeps isn’t enough to keep your employees happy, an awesome hotel to stay in while they’re there should do the trick. We’ve come up with a list of the best business hotels in New York City so you can suggest them to your travelers.

 

Hotel Indigo Lower East Side

Location, location, location! The LES is a hip, fashionable area of New York. Plus, it’s got amazing delis. People have been known to travel across the world just to get a good pastrami on rye with a kosher pickle on the side. Your employees could kick back with a beer at a comedy club after a long day of meetings and get a tattoo of their future ex-girlfriend to abashedly hide under their suit when they get back to the office.

 

Aside from the great location, the hotel itself is artsy and boasts a rooftop bar with views and people that are easy on the eye. A quick morning swim at the pool should give anyone the energy they need for a productive day. One thing that makes Hotel Indigo a favorite for business travelers is the friendly staff and small comforts like USB ports on the night tables.

 

Nomo SoHo

If neighborhoods were people, the LES would be the quirky, artsy, laidback younger sibling, and SoHo would be their more responsible, chic older sister. SoHo is the place to be for shopping lovers. There’s eye candy every which way, from the high-end boutiques and trendy pop-up shops, to the designer knockoffs that lace the cobblestone streets, for the more frugal among us.

 

Guests at Nomo SoHo can enjoy fancy treats like eucalyptus and mint shower gel, or more practical benefits like fast internet and a mobile phone with unlimited free and international calls – perfect for business purposes.

 

The New York EDITION

Nomo SoHo may be fancy, but The EDITION is fancy schmancy. A partner of the Ritz Carlton, this luxurious 5-star boutique hotel is inside the famous clock tower built in 1909, and features a Michelin-starred restaurant.

 

Travelers can refresh themselves after the flight with a therapeutic massage at the hotel spa, and enjoy the convenient midtown location. Guests at the elegant EDITION have noted champagne that appears as if from nowhere, the magnificent view of the city, the proximity to subway stations, and the VIP feel that the hotel provides them.

 

The Marcel At Gramercy

Situated next to Gramercy Park, the Marcel is close enough to tourist destinations, but not too close. Business travelers can get away from the hustle and bustle of Times Square while taking in the breathtaking view of the Empire State Building. The 10th-floor business lounge is great for working, having meetings or relaxing while enjoying free wifi and tea, and the rooftop terrace is excellent for basking in the sun.

One thing that sets this hotel apart from the rest is exceptional service. Guests are greeted by a smiling bellman and are well taken care of by the helpful staff.

 

EVEN Hotel New York – Times Square South

This one’s a paradise for health buffs. Your employees can keep up with their daily exercise routine, with strength training and yoga equipment in their room, or work out in the nice-sized gym (nice-sized for the city, that is). The practical and health conscious hotel is within walking distance of the business district and Penn Station.

 

Guests of EVEN love the nutritious breakfast, the complimentary water bottles, the quiet rooms, and the smart mood lighting.

 

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Now that you’ve got a nice selection of business travel hotels that will make your employees love you, you’re almost all set. Let’s get you started with Arbitrip’s business travel program that can help you reduce costs, time and stress. Check it out.  

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Why Every Business Should Have A Travel Program

Why Every Business Should Have A Travel Program

Noise canceling headphones? Check. Passport? Check. Travel program? Not so much…

 

Whatever the size of your company, startup, or scale up, business travel will inevitably be one of your management challenges. Unfortunately, many growing companies don’t have a clear travel program in place. And this can be a big mistake.

 

Your team’s travel needs can be quite unpredictable throughout the year. Businesses often require that the office manager, HR department, or personal assistant takes on the responsibility for booking flights, hotels, taxis, and everything else that comes with it. As you might imagine, without a clear policy or travel program, a company may run into miscommunication or overspending related issues.

 

Having a clearly defined travel program can help keep things running smoothly and avoid a few headaches along the way! So let’s take a look at the benefits of implementing one in greater detail.

 

Establishes rules

First and foremost, a travel program will define a number of rules, which will help the travel manager or executive assistant make decisions much more easily. It will also help establish boundaries and ensure that team members don’t seek out preferential treatment.

 

Keeps budgets on track

Travel is expensive and it’s easy for costs to get out of hand – especially when it comes to booking flights and hotels. Having a travel program will help you keep your expenses in check and follow a strict budget.

 

Reinforces the need for planning

A travel program also helps set deadlines for business travel. This will help reduce the number of last minute trips (where possible) and will lower the number of stressful unplanned scrambles to find suitable hotels, transport, etc.

 

Standardizes suppliers

By carefully evaluating which hotel chains and airlines offer the best value, you can save time, money, and ensure a certain standard of service. Of course, you must also take into account the number of stopovers, comfort and safety of your staff when selecting suppliers. Make sure you get feedback from your team each time they travel and re-evaluate when costs rise, or the quality of the service drops. If you use a dedicated travel agency, you will be better able to keep track of your team’s whereabouts.

 

Clarifies expenses

Travel programs must also establish what expenses are covered, how they should be claimed, and who should be made aware of them. A blurry travel expenses policy can lead to misspending, confusion, or even quiet resentment when different team members are given preferential treatment. If you provide an expenses card for regular travelers, you’ll be able to keep tabs on your costs more effectively.

 

All in all, an effective travel program will help you to reduce costs, track spending data, avoid stress, automate approvals, and ensure that every team members knows where they stand when it comes to business travel.

 

Do you have any questions about setting up a travel program? Arbitrip is here to help! Drop us a line – we’d love to hear from you.

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Travel Management for Startups

Travel Management for Startups

As a startup you’ll inevitably have numerous policies and processes to implement (yay…!) including travel management.

 

Admittedly, it’s not always an easy (or particularly sexy) task, but it’s important to get right. And these policies can save money in the long haul.

 

Need a few pointers? Here are some top tips for setting up a great travel management program for your business.

 

Make a Travel Management Policy

A travel management policy will help you get all your ducks in a row. So, what should it do?

 

  1. Outline the booking processes employees need to follow – for example making all bookings through one central person, or specifying which suppliers should be used.
  2. Include expectations or restrictions – set regulations like booking as far in advance as possible, or set out how much the business is prepared to pay for a night’s accommodation.
  3. Look after employees’ interests – while costs are important, it’s equally crucial to make sure your people are treated well. For example, bankrolling business class for long distance flights could mean employees are better rested when they land.
  4. All policies should include risk mitigation – preventative measures and processes designed to keep staff safe in the event of a mishap or crisis. This is a moral and legal obligation.
  5. Clearly communicate the policy across the company – let everyone know the policy exists via a summary of key points to outline expectations.

 

Choose Providers Carefully
The need to cut a trip short or delay a flight is not uncommon, so it’s best to include flexibility when booking. Choosing providers that allow for last minute cancellations or changes will make everyone’s life easier and save money.

 

Sticking to one or two flight providers can also pay dividends, as many offer flight credits or points that the business can cash in, or offer to employees as rewards.

 

Request a Breakdown of Costs

Choosing what initially appears to be the cheapest option isn’t necessarily going to save you money. Budget hotels often charge for business essentials like Wifi, and these fees can multiply. Higher end hotels tend to include business basics and could be better value. Being savvy and asking for a full breakdown of costs will ensure transparency.

 

Smart Management

Intuitive and inexpensive software like Arbitrip is changing the face of travel management by simplifying processes. Our corporate travel platform helps businesses find the best hotel stays within their budgets. But we’re more than a clever booking tool. Our easy to use dashboard gives travel managers and other stakeholders the reports and insights they need to keep track of activity and spending. As a result, we have helped companies save thousands of dollars in travel costs.

 

Keep Up to Date

And last but not least, this industry is rapidly evolving. Following national or worldwide bodies like the Global Business Travel Association (GBTA) and attending shows like the UK’s Business Travel Conference, will help you keep abreast of the latest trends and regulations and how they affect your company.

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To Pre-Pay Or Not To Pre-Pay? That Is The Question…

The problem with business travel – particularly hotel stays – is that there’s too much choice. Not just concerning the inclusion of breakfast, airport transfers, and proximity to company offices/conference venues – but how the darn thing gets paid for.

 

We can pay online, in person, on arrival, at checkout, or have someone else handle it completely. But actually, when you think about it, you can group these into two primary transaction types: Pre-Pay and Post Pay.

 

There are many differences between the two types: in terms of cancellation policy, changes flexibility, cost, and operational process. Let’s take a closer look…

 

Post Pay

When the business traveler pays at the hotel at the end of their stay. The company or travel agent just put a credit card up as a guarantee.

 

Main Advantages

  1. You can usually cancel post pay bookings at the last minute.
  2. Post pay bookings are usually more flexible: so if a traveler needs to shorten his stay while he’s already there, it’s usually not an issue.
  3. Payment isn’t taken until the visit, which can be easier on companies’ cash flow.
  4. Employees can use their travel credit card and earn points as part of a hotel loyalty program.
  5. Reclaim VAT. The invoice is issued from the hotel directly to the business: meaning the company can claim for a VAT refund.

 

Main Disadvantages

  1. Employee uses a company credit card or submits the cost via expense report.
  2. Some employees might not be crazy about having a £2,000 charge on their credit card bill.
  3. Post pay rates tend to be more a more expensive option.

 

Pre-Pay

The company pays for the hotel before the traveler arrives. A voucher is issued which the traveler shows during at check-in.

 

Main Advantages

  1. Employees don’t pay at the hotel (company pays directly).
  2. Usually more competitive rates than Post Pay.
  3. No need to reimburse or issue a credit card to employees.

 

Main Disadvantages

  1. Usually more restricted cancellation policy: you can cancel up to 48/72 hours before the check-in date.
  2. Less flexible in terms of changes: some rates even prevent a guest name change and most won’t let you shorten your stay (though often this depends on the hotel booked and the rate paid).
  3. Sometimes employees have problems claiming their loyalty points. Since the room was booked through a 3rd party and not directly with the hotel, some hotels will not consider their stay as valid.

 

While different companies and individuals will have their own preferences, Arbitrip offers the benefits of both: the flexibility of Post Pay with the cost savings of Pre-Pay. You simply set a budget and our matching algorithm finds the right kind of hotel for your stay and re-books it when a better deal becomes available.

 

Want to find out more (about Arbitrip!)? Get in touch.

 

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