It has become increasingly clear that business travel is getting more and more expensive, with $1.2 trillion being spent almost each year on this endeavour.
The spending is so high due to what is basically misaligned incentives from those who are travelling versus those who are forking out for the travel. Whilst you might think a little overspending here or there won’t be a massive deal to your overall companies costs, this just isn’t true. With travel and expenses eating up from a fifth to a third of the overall spending. Which, by any small biz standards really isn’t something that is worth it when in a growth phase.
Travel is important, as are keeping costs low
Knowing that travel is integral for the growth of your small business, for fostering relationships, and breaking into different markets, means that it is important to get your travel management strategy right from the beginning to keep costs low. So, what really needs to happen is the alignment of the employers and employees interests in this case. So, that it is beneficial to both the company and the employee, it has to be rewards based, that employees feel they are empowered with a range of options and travel flexibility, and there is a guide to how much any trip should realistically cost.
The new way to tackle travel and expense management
To tackle this problem, especially for small businesses, it is important to give employees more of an impetus to save by putting the travel management in their hands. Knowing that they have the choice to fit to their preferences, they understand the company is trusting them, will create a feeling of mutual respect and therefore will keep employees from spending ridiculously.
Simple management system
Having clear overviews, simple management, team limits and flexibility on search, changes and cancellations, Ahoy provides a clear and effective travel management solution. From one simple app, you can search, book and manage all of your travel, with 24/7 support that is there for you wherever you are in the world. Ideal for last minute changes, understanding your ticket terms and learning the tricks on how to ace frequent business travel with insider hacks.
Helping to enable a positive relationship cycle between employer and employee when it comes to business travel is key in creating positive morale and therefore more care when it comes to planning their own travel.
Technology is business travels’ new best friend
Once you’ve established this positive empowering relationship by giving your employees the freedom to book through a simple travel management app. Then another great way to keep costs low is to encourage employees to use apps and unconventional methods, such as staying in AirBnBs and using Uber to get around.
Getting savvy with the latest travel and holiday tech will keep costs low and also allow employees to have a better experience when staying in new places.
The Secret Sauce takehome – managing costs as a small business is key to growth, as is employee travel, so using a modern take on travel management is how you will hit that sweet spot. Implement a low cost travel management solution, like Ahoy, that empowers employees and also gives an overview of spending, and then create a positive trusting relationship encouraging them to search and book whatever travel works for their schedule. The conjunction of empowerment and use of low cost tech is what will be the winning solution to not having a frightening travel budget come year end!