Business travel is an essential part of corporate life. Whether it is for attending meetings, networking events, or exploring new markets, travel is an integral aspect of conducting business on a global scale. However, it’s not just packing a bag and hopping on a plane. Companies should consider the costs and benefits of business travel and develop strategies for maximizing return on investment.
In this three-part series, we will explore the various aspects of business travel, including the costs, the benefits to companies, and the strategies for optimizing ROI. In part one, our CLC lodging app in Hobbs, NM will discuss the costs of business travel:
Costs of Business Travel
Business travel costs can vary greatly depending on the destination and the purpose of the trip. Some of the most significant expenses associated with business travel include the following:
Transportation
Transportation is an essential part of business travel. It can be costly and time-consuming depending on the destination and mode of transport used.
The most common form of transport for business travel is by air. Airfare costs vary greatly depending on the airline, route, and time of year. Business travelers should always shop around and look for the best deals. Other transportation options include car rentals, trains, and buses.
Car rentals can be an affordable option, but fees and fuel costs can add up quickly. Trains and buses can be a great way to save money, but they may not always be available or reliable.
Accommodation
Accommodation is one of the most critical aspects of business travel, and it can come with a hefty price tag. The cost of accommodation largely depends on the type of accommodation chosen, the location, and the quality of the hotel or other lodgings. Hotels are often the most expensive option, especially in major cities. However, there are other accommodation options like Airbnb, hostels, and budget hotels.
Some companies may also offer corporate rates with hotels. It is important to consider the total accommodation cost, including taxes and any additional fees. When planning business trips, balancing the need for quality and the desire to save money is important.
Meals
Business travel can be costly for employers, and one of the largest costs associated with business travel is meals. Depending on the type of travel, meals can range from simple snacks or take-out to full-service restaurants. Travelers should be provided with enough funds to cover meals while on the road. Meal allowances should be consistent to ensure that travelers have the same access to food no matter where they are. Employers should also consider the local cost of food and adjust meal allowances accordingly.
What Companies Invest On
While business travel can be expensive, companies can make strategic investments to ensure they get the most value for their money. Some of the key areas where companies may choose to invest include:
- Travel Management: Companies may choose to invest in travel management services to help them plan and book their trips. These services can help companies save money by negotiating better rates for transportation and accommodation.
- Loyalty Programs: Many companies invest in loyalty programs to help them save on travel expenses. These programs can provide discounts on airfare, hotel stays, and car rentals.
- Technology: Companies may also invest in technology to help them manage their travel expenses more effectively. This can include expense tracking software, online booking tools, and mobile apps.
- Training: Companies may spend money on training to help their employees become more effective business travelers. This can include training on travel safety, cultural awareness, and negotiation skills.
- Travel Policies: Companies may develop travel policies to help them manage their travel expenses more effectively. These policies can include guidelines for booking travel, selecting accommodations, and managing expenses.
Conclusion
Business travel can be a substantial expense for companies, but it is often necessary to achieve their objectives. By carefully considering what they invest in, companies can ensure they get the most value for their travel budgets. Whether it’s investing in loyalty programs, travel management services, or training, there are many ways for companies to make strategic investments in their business travel programs. In the second and third part, our CLC lodging app in Hobbs, NM, will cover the benefits of business travel and how to maximize your return on investment.
Globeo offers housing solutions for employees traveling in the United States, Canada, and Mexico. Our data analysis and 24/7 customer service are supported by our web-based reservation system. Request a free demo of our CLC lodging app in Hobbs, NM!
