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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 January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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