Business travel is essential tool for growth of a company. For large business firms cost of business travel is about five to ten percent of the total cost and in case of small businesses it tends to be higher. Smaller companies have to undertake business travel for acquiring new customers, face-to-face interaction for sales promotion and conducting promotional activities for their business. Studies have revealed that there are substantial benefits of business travel in terms of corporate profitability. However, cost of business travel has increased over years and recent economic downturn has made it difficult for companies to sustain profitability. Many companies are eliminating business trips that are effecting their growth. It is desirable to cut down cost of business travel and avail its benefits rather than eliminating it.

Business Travel Is Required From Time To Time

Cost of business travel can be minimized by following tips mentioned below:

Reduce cost of air travel by booking advance tickets and planning well ahead. Business travel may be taken in economy class rather than business or first class for lowering cost of travel. For short trips look for flights that are leaving in odd hours like early morning or late night. Ask the travel agent to look for discounts and last minute deals and work up some incentive to encourage.

Apart from cost of airfare, cost of food is substantial in business travel. Look for hotels or accommodation that comes with full kitchen. This is very effective when you are on an extended business trip. You can put together your meal at fraction of cost that you may be paying in hotels. Try to look for hotels that offer breakfast as a part of the room rent. If you have a policy to reimburse, then put a cap on the cost of food. Alcoholic beverages and snacks may not be reimbursed.

Shop wisely for hotels. Take advantages of corporate discounts offered by different renowned hotel chains. If you need to travel frequently to certain places then work out with the hotels for rates. When your employees need to go in groups consider sharing of rooms and group discount. There are various websites offering competitive rates, browse through and gather information about them.

Save Big Money By Some Small Tricks

Small companies rely heavily on road travels and car rentals for business trip. Look for rental companies that offer free rental days and discounts. Small car rental companies may offer more value for your money than the big ones. Try to stay away from add-ons like GPS system, EZ pass transmitters and rental insurance. Employees may be asked to stay near the business or conference site to avoid car rental. In case of emergency cab ride may be permitted rather than rental car.

Limit business travel. Try to explore alternatives like video conferencing or conference call that may give you desired results. An internal meeting may be conducted in such a place where maximum participants can drive and need not fly. Workshops may be conducted in such a way that participants need not stay overnight. Try to be flexible and plan well to save your money.