8 Top Tips For Cutting Business Travel Expenses From An Expert

Summary

• Booking flights 8 to 14 days in advance can save up to 20% on airfares, aligning well with the scheduling needs of corporate travel.
• Opting for slightly off-peak flight departures can lead to more affordable fares, avoiding congested and expensive peak times.
• Flights scheduled for weekdays, particularly Mondays, Tuesdays, and Wednesdays, are approximately 12% cheaper on average than weekend flights, providing a cost advantage for early-week meetings.

The landscape of business travel is undergoing a significant transformation, with projections indicating a substantial increase of some 188 percent in travel over the next five years. Correspondingly, the costs associated with business travel are expected to surge.

In response to these shifting trends, an expert in business travel, Bertrand Saillet, Managing Director of FCM Asia, offered Simple Flying a set of eight tips to help empower businesses to more effectively manage their travel expenses over the coming years.

Saillet emphasizes that crafting cost-effective travel management plans is a central focus of FCM Asia’s services.

“As travel experts, we know the tricks of the trade to secure the most convenient, cost-effective travel options for corporates that travel regularly. Here are some money-saving hacks that have been tried and tested by business travellers over the years.”

Beyond simple cost savings tips, like avoiding hidden fees, the strategies proposed by Saillet encompass a comprehensive approach to cost reduction and value maximization in business travel:

1 Early booking yields savings

The data compiled by FCM Asia demonstrates that reserving flights 8 to 14 days ahead of departure can result in potential savings of up to 20 percent on airfares. Airlines often release budget-friendly seats during this window to ensure optimal flight occupancy. Since business meetings are often scheduled a week or two in advance, this strategy has potential to align well with corporate travel needs.

2 Strategic flight times

Opting for flight departures at quarter-hour or half-hour intervals can lead to more budget-friendly fares. FCM Asia endorses this approach, attributing its success to supply and demand dynamics. Flights departing on the hour are generally more expensive due to higher booking frequency. By selecting slightly off-peak departure times, travel coordinators can secure less congested and more affordable options.

3 Weekday flight advantage

Data from Google Flights indicates that flights scheduled for Mondays, Tuesdays, or Wednesdays are approximately 12 percent cheaper on average than weekend flights. This strategy proves particularly helpful for those with the can arrange early-week meetings. While late-week flights might be pricier, they can offer the bonus of extending a weekend stay at the destination.

4 Strategic rewards programs

FCM Asia advises businesses to focus on a select few major rewards programs instead of spreading efforts across numerous options. Achieving gold or platinum status within these programs bestows benefits like priority seating, extra baggage allowances, and access to business lounges. Many such programs allow travelers to accumulate and redeem points across extensive alliance partner networks.

5 Regular supplier negotiations

Instead of adhering to a static travel policy, Saillet suggests renegotiating terms and prices with travel suppliers at least every two years. This is especially true post-pandemic, as many travel policies have remained unchanged since 2019 and, of course, much has changed since then.

Engaging in negotiations with providers, including for hotels and car rental companies, can help reduce your business’s travel budget significantly. Exploring value-driven providers might also yield positive results, aligning your policy with evolving travel patterns.

6 The ‘Five-Block Rule’ for accommodations

To cut costs in city bookings, Saillet recommends avoiding accommodations and dining options within five blocks of the central business district (CBD). When seeking alternatives, prioritize areas with robust public transportation and convenient access back to the CBD.

7 Strategic trip bundling

In response to post-pandemic changes, many businesses are adjusting their travel frequency and duration. Instead of frequent day trips, more organizations are consolidating meetings into two- or three-day trips. This approach, occasionally followed by leisure time, allows for efficient use of travel resources while accommodating shifting travel trends.

8 Value-added programs and newsletters

Saillet also suggests selectively subscribing to hotel and airline e-newsletters to access exclusive sales and discount codes. These subscriber-only platforms provide opportunities for potential savings.

What other tips would you share to help business travelers (or the rest of us) save on travel expenses? How might these tips look different than they would pre-pandemic? Let us know in the comments below.