Business Travel Expenses: How Much Is Too Much?
Business travel is integral to the success of many modern businesses. The global economy is ever-expanding. That means that companies are trading with each other, regardless of location. Many people believe that when they travel for business, they should spend over the odds on their travel. There is a huge emphasis on impressions when it comes to business travel. That means that people often believe that they have to make an amazing impression on clients. They try and make this impression by having the most-expensive travel arrangements. Major companies waste millions every year on business travel. They could spend that money on more valuable things, yet they choose not to. With everybody cutting back on their business expenses, you have to ask, how much is too much for business travel?
Flights and transfers
If people are traveling to see foreign clients, they will often need to get a flight to their destination. When you are a businessman, you might assume that you should fly business-class. Airlines boost prices of business-class seats, and so you could be paying much more than you need to. The only time that business-class will save you money is if you join a loyalty club. If it is likely that your business will need to book many trips in a year, you could join a frequent flyers’ club. That will mean that you get discounts on your flights and transfers so long as you stay loyal to just one company.
Hotels and accommodation
When you book your hotels for a business trip, there is a temptation to book the most-expensive hotel to impress clients. Remember, you don’t have to stay in the fanciest place so that you can impress people. You can take people to a meal in a nice restaurant for a business meeting or meet in a hotel reception. Your clients and contacts don’t need to know where you are staying, and they would never ask. You can save your business loads of money by staying in a budget hotel.
Information and risk assessments
One thing that many businessmen forget when they are traveling is the possible risks that the travel entails. You should always make sure you do a risk assessment of your business trip before you book it. Get corporate travel security so that you can assess each journey before you make any plans. Many people waste money by not finding out all the details about their destination before they leave. You might find that the journey will cost you more than it will be worth. Planning ahead will prevent you wasting company money.
When you travel alone, it is vital that you get insurance. You need to make sure that you have both health and travel insurance before you embark on a trip. If you have a problem whilst you are away, you need to know that you can cover the costs of the issue. Make sure that your company has a comprehensive travel insurance policy before you plan your business trip.
Meals and extras
Entertaining clients is a huge aspect of any successful business trip. You should make sure that you have the right finances to treat your clients and contacts to business meals and little extras. When you are meeting with a client, you need to cover the costs of their meal and drinks. You should make a reasonable budget for these costs before you embark on your journey. That way you will know how much you can spend on each client. When dining alone, try and save money on your meals. The business trip is not a vacation, and you should never waste company finances.