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5 Tips to Reduce Business Travel Expenses

5 Tips to Reduce Business Travel Expenses

Business travel can be quite an expensive affair. China and the United States alone contributed to nearly $600 billion US dollars worth of business travel last year. It is estimated that close to 16 percent of all international trips and 34 percent of domestic trips are for business purposes. Besides the cost of the flying itself, traveling for business also includes the cost of hotels, cabs, and airport transfers. All of this can easily add up, especially if you are a bootstrapped business traveler. In this article, we will take a look at five ways to minimize the cost of business travel.

1. Fly the Same Airline/Alliance

It can be tempting to fly the cheapest airline each time you travel., but in doing so, you are denying yourself an opportunity to accumulate frequent flyer miles. By sticking to one airline (or alliance), you get to quickly accumulate airline miles that may be redeemed for free flights in future.

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There are a few things to remember here. First, you may sign up for more than one frequent flyer program so that even if you fly a different airline each time, you still get to accumulate miles. Secondly, many frequent flyer programs allow their members to redeem miles for flights that they have already flown. So in case you have already flown an airline a few times recently, remember to sign up and redeem these miles as well.

2. Use Off-Site Parking

Domestic business trips seldom last more than a couple of days. For such short trips, hiring a cab for airport transfer can work out to be expensive. For instance, if you are in Los Angeles, the average trip to the airport from LA downtown could be $50 (that is, $100 both ways). Shuttles are cheaper but inconvenient since they may not always fly from your neighborhood.

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A great alternative is driving your own car to and from the airport, but with the daily parking rates hovering between $25 to $30 in most major airports, this may not be the cheapest option either. For long-term savings, a good idea is to use off-site parking services that are located conveniently close to major airports.

The average off-site parking cost is $15 per day, and this is just half the price of airport parking. If you run a business with 100 trips each month and assume each trip is two days long, you could potentially save as much as $3000 each month by just using these offsite parking services.

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3. Book Hotel Chains

Most business travelers are aware of frequent flyer miles, and use it to save money. These travelers often fail to seek similar loyalty rewards from the hotels that they stay in. If you are someone who travels across the country or the world, a good way to save money is by booking rooms in hotel chains instead of stand-alone establishments. Such loyalty not only helps you save money, but can also help you win favors from the hotel management in terms of preferred rooms or extra amenities.

4. Avoid Cash

A business traveler to San Francisco is estimated to spend $509.50 each day on an average for food, car rental and hotel. At a national level too, the average daily cost for meals and car rentals work out to around $96.89 and $46.89 respectively.

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A great way to save money is by avoiding cash completely during business trips. Using corporate cards earns you reward points that may be redeemed in future for other purchases. For instance, Amex cards routinely reward you with 1 point for every dollar spent. Which means, twenty days in San Francisco would earn you enough points to cover the cost of a flight from San Francisco to Los Angeles.

5. Create a Travel Calendar

Your travel dates may depend on a multitude of factors, and this may make it difficult to book your trips in advance. But if you are a sales manager traveling the country to simply meet with your regional associates or to keep in touch with your clients, making last minute bookings may work out to be expensive.

A good idea is to prepare a travel calendar that you can share with your associates and clients in advance so that they may schedule their appointments accordingly. A travel calendar also helps you identify peak travel times for specific routes which you may avoid. For instance, international trips to India may be expensive during the local festival season in October, while similar trips to China may be expensive during their new year in February. A travel calendar helps you prepare for such expensive seasons in advance.

Featured photo credit: Pexels via pexels.com

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Anand Srinivasan

Marketing Consultant

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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