5 key tips to save money in corporate travel management
The efficient management of corporate travel has become a crucial aspect for any organization seeking to optimize its financial resources and maintain its competitiveness in a globalized and dynamic market, as well as to improve its employees' experience.
To help companies in this task, Consultia Business Travel, through its Destinux tool, has launched a guide in ebook format with the five keys to achieve cost optimization in the management of corporate travel, which can allow them to save up to 20%.
Digitization of management
Having a tool that digitizes the management of corporate travel is essential to promote efficiency, security and transparency. Incorporating a comprehensive technology service not only eliminates the need for manual processes that are prone to potential losses and errors, but also automates tasks and enables real-time visibility into travel-related expenses. For example, thanks to a system that digitally allocates travel expenses to the corresponding CECOS, projects or units, companies can optimize their financial resources and maintain better control over spending by realizing an additional 6% savings on travel costs.
This type of technological solution should allow them to digitize and automate all the processes involved, without dispensing with the personalized and human treatment of a Personal Travel Assistant, since a professional service at the traveler's disposal to resolve incidents and setbacks improves the travel experience and avoids having to hire different suppliers, which translates into cost savings.
Customized expense policy
Developing a customized expense policy to meet the traveler's current needs and priorities is essential. In this sense, it is important to consider some tips that include from establishing policies customized to each traveler, implementing criteria for trips of greater intentionality and duration, or implementing travel policies that take into account the concern for environmental impact.
As such, setting clear and realistic limits, as well as providing accommodation and transportation options that align with corporate preferences, contributes to a more efficient use of resources. According to sources such as Aberdeen Group, having a well-implemented travel policy can help you save 5-15% of your available business travel budget. With this method, a company with an annual travel volume of ?200,000 could save up to ?30,000.
Centralization of economic data
Third, centralization of economic data is crucial for effective financial management. By consolidating all data related to business travel, from individual expenses to supplier contracts, complete transparency is achieved and informed decision making is facilitated.
In addition, having all current and historical information available on a single platform can save 75% of the time spent searching for it. According to Destinux data, some companies before getting a digital business travel management system needed at least 3 months to prepare next year's budget, as they had no historical records to forecast the investment needed for the following year.
On the other hand, thanks to the use of an automated tool such as Destinux, a company that performs 500 services a year could save around 3.3,000€ in the management of its travel invoices by assigning expenses to the corresponding projects or units, avoiding errors in the process and eliminating manual invoicing and, with it, extensive hours of work.
Access to special rates and programs
Having access to special rates and programs is key to enjoying cost optimization. These special programs can include negotiated rate agreements with airlines, hotels or car rental companies, among others, as well as loyalty programs that offer additional benefits, such as class upgrades, free hotel rooms or frequent flyer miles.
By taking advantage of these fares and programs, companies can significantly reduce travel costs, maximizing the value of each corporate trip.
Direct and immediate oversight and approval systems
Finally, as is obvious, centralizing approval of all travel to one or more people in the company brings with it a significant cost savings;This results in hours of dedication and, on some occasions, loss of information and delays in the authorization and approval processes.
Through an automated system, the person in charge of authorizing processes can receive in a single platform all requests that deviate from budgets and company policies, having, in addition, all the information in real time, resulting in savings of up to 70% of the team's time in this area.