How to Reduce Business Travel Expenses

Plane tickets, rental cars, meals out--traveling for business is often a necessity, and an expensive one at that. Fortunately, there are lots of simple ways to reduce expenses for business travelers. Through thoughtful planning and skillful use of financial resources, you or your company can save a sizeable amount of money during business travel. So pack your bags, and get on the road--you can afford it.

Instructions

Cards, etc.

1




Some credit cards offer advantageous mileage or point programs.

Become a member of an airline mileage or travel points program. Try to always fly, drive, and stay with member and partner companies to consistently earn points. You can apply online, by mail, or in person at the airport, hotel, or car rental agency. Points add up to free stays and travel.

2

If you travel extensively and use a couple of different companies for flights, rental cars, or hotel stays, become a member of travel points programs with these service providers as well; it is worth the extra 15 or 20 minutes of your time spent filling out applications. Sometimes members of point programs receive special offers for cheaper travel, upgrades, and extra point accumulation--all benefits that can save you cash.

3

Consider applying for a business credit or bank card affiliated with one of your travel point programs. When you book travel with these cards, especially directly through the company, you earn extra points toward free flights, rentals, and hotel stays. Look for a card with no, or a low, annual fee, the lowest interest rate, and minimal black out dates on travel paid for with points.

4

Pay off as much of your balance as possible every month to avoid finance charges and interest, and always pay your minimum payment on time to avoid late charges.

5

If you use more than one point program extensively, consider applying for another credit or debit card affiliated with that point program as well. Charge to each card depending on the point program. Delta flights should be charged to a card affiliated with a Delta points program, and US Airways flights should be charged to a card affiliated with US Airways.

Comfort, not Luxury

6

We all want to be comfortable when we travel, but comfort and luxury are two different things. Reduce flight expenses by flying economy class, and booking your ticket at least 60 days ahead of time whenever possible. If you must fly business class, consider using points to upgrade, which is often cheaper than buying a full-price business class fare. Alternately, contact ticket consolidators (look them up in the phone book or online) who can offer business class fares at a lower price.

7




Taxis can be convenient, but are much pricier than public transportation.

Decrease rental car expenses by renting a smaller, older vehicle with good gas mileage, or, if you are appropriately insured and this is a practical option, pay co-workers gas mileage to use their own vehicles for shorter trips in and around your company's location. Do pay the small insurance fee, in case of any accidents. Discourage the use of chauffeured cars and taxis, and encourage employees to use public transportation on business whenever possible. In larger cities, walking and using public transportation also saves you lots on parking fees.

8

Cut down on hotel costs by opting for a reasonably priced economy or business hotel near the location where business will be conducted, or well connected to that location by public transportation. Hotels should be clean and comfortable, but not luxurious. Book hotels that include breakfast and wireless Internet connection in the price. When possible, you should book aparthotels for business travel so employees can save on the cost of eating out by preparing their own meals. Have employees share rooms or suites with separate sleeping areas.

9

Do not reimburse expensive meals out (except when required to host current or potential clients) or minibar use. Advise employees to buy snacks and drinks at local gas stations or groceries and to eat at nice, midrange restaurants for lunch and dinner. Set a budget per day for meals, no alcohol allowed, and stick to it.

Travel Less

10

To reduce business travel expenses, travel less. When possible, conduct shorter meetings via phone, chat, email, or video conference.

11

Think carefully about whether a conference, potential client, or meeting is worth a trip. Some long-distance events or faraway customers may not be worth the travel expense. If it's not likely you'll make a profit or at least break even, or if you're not sure it's worth the time and money, don't go.

12

Plan your traveling so that trips in the same area coincide. If you have an event or conference in the same general area as a client or potential client, try to work in as many meetings and events in that area as possible. Then book one flight and use public transportation or a rental car to connect with clients and meetings in the area.