4 Things To Know About Business Travel Expenditure
Business travel is on the rise, with 492.1 million trips projected for the first quarter of 2015. Spending is increasing as well, making travel a big investment for many companies. If you have employees on the road, it’s important to plan appropriately for these trips to control spending while keeping your employees comfortable and cared for.
Your Choice of City Impacts the Bottom Line
When you’re playing the host for a conference or regional meeting, your choice of city plays a big role in your business expenses. While you want to select a hub where everyone can easily convene, aiming for a suburb instead of a major metropolitan area can save you hundreds of dollars a day.
The daily cost for business travel is $509.50 in San Francisco, $494.95 in New York, and $465.52 in Boston. Head just an hour outside NYC to White Plains, NY, and your daily costs drop by more than $100. Oakland, California is less than 20 minutes from San Francisco, but the daily travel cost is $339.73 — a difference of $170 a day.
Business Travelers Have Distinct Needs
Life on the road is challenging, but you can make it better for your business travelers by providing the right amenities. Health-focused amenities are essential for business travelers. Fifty-two percent of small business travelers use their hotel’s fitness facility, and 81 percent eat healthy meals. Exercising on the road does more than burn calories. It’s also a useful strategy for battling stress on business trips. Exercise reduces your stress response by releasing feel-good endorphins.
Consistency is Important
Business travelers are a loyal lot. Sixty-five percent belong to a hotel loyalty program, and many carry their preferences over into their leisure travel. Marriott is the most popular hotel for business travelers when they’re on the road for work, and the second most popular pick for those same business travelers when they’re on a leisure vacation. Hilton ranks second for business travel and third for leisure trips, while Courtyard by Marriott takes third place for business travel, but jumps to first when business travelers go on a trip for pleasure.
Working with the same chain for multiple trips will help your travelers amass loyalty points that they can use for upgrades and other perks. It will also streamline their journey by giving them access to certain amenities. Staying at a well-known chain provides a sense of familiarity on the road, even when everything else is in flux.
Travel is a Major Expense
For most companies, travel is the third-highest controllable cost. If you’re looking for a way to trim spending, this area is a great place to start. An organized travel expense management system can help you identify where your travel dollars go and spot trends in overspending. It’s important to keep a close eye on your travel expense reports to keep your costs controlled. Invest in a program like the NextProcess Travel and Expense Management Module to streamline your travel expenses.
Make the most of your business travel by keeping an eye on expenses and organizing trips that are comfortable, productive, and cost-effective for everyone involved.