Small Business Guide to Corporate Travel Planning

Managing Your Corporate Travel Costs Like a Fortune 500 Giant

Are you sick of having your business budget destroyed by disproportionate travel expenses?

Imagine being able to organize and manage an affordable business travel program without having to pay the high fees associated with using a travel management company.

In this guide, we'll explore:

• How to increase value by cramming several chores into a single itinerary

• Why assigning work to others can ensure careful preparation and save you time

• The significance of clearly defining objectives and effectively conveying them

• Important things to put in your travel budget and how to define boundaries

• The advantages of having a clear travel policy and the need of being adaptable

But controlling your expenses can be particularly challenging if your line of work involves regular travel. If you're not careful, per diems, airfare, rental car expenses, and hotel might take up too much of your cash.

Should that describe you, you may be searching for an improved resolution. Perhaps you're thinking if you should hire a travel management company or if there's another method to score discounts and keep your own travel program affordable.

Well, we're able to assist.

This book will teach you how to create and manage a corporate travel program that is as affordable as that of a Fortune 500 firm without having to pay the high fees associated with using a large travel management company.

Work Smarter, Not Harder

Spending less doesn't have to mean sacrificing travel experiences. It simply implies that in order to justify the expense, you must cram as much as possible into a single schedule.

Corporate travel planners need to be well-organized for it to occur. The position necessitates delegation, both macro and micromanagement, short- and long-term planning.

Tips for Managing Your Travel Planning

So, how do you balance all of your other responsibilities while organizing a vacation for dozens or perhaps hundreds of employees?

Everyone's job can be a little bit easier with these recommendations.

Maximize Using Your CRM

Investing in customer relationship management (CRM) software may be the greatest way to optimize your business procedures. Cost-effectiveness allows the correct CRM software platform to pay for itself.

You can communicate with everyone instantly with a CRM. A notification is sent to all those who need to know when someone's plans change.

Let's take the example of a delayed plane for an employee. They immediately notify whoever is in charge of picking them up at the airport after logging it into the CRM.

You can take advantage of a multitude of resources offered by a CRM, but each one is unique. Making the most of the money you have paid for—or will continue to pay for—means investing in the training of both your employees and yourself.

Let Go of (Some) Control

To what extent are you able to relinquish control? Do you delegate helicopters? Or are you content to let someone else take over the reins who is as qualified for the job?

Although it may seem paradoxical, assigning work to others is the most efficient and thorough method of working.

You can review everything after your organizing structure is in place and decide which tasks you can delegate to others.

For example, copies of the travel policy should be available to all. Allowing your employees to make reservations within the parameters of the policy can help you delegate most of the work and maintain transparency on the travel arrangements.

Know Your Goals and Make Sure Your Staff Does

Following a goal is essential to managing a business successfully in every way. Although managing business travel may not be a part of your "typical" day, the goal is always the same in the end.

What are you hoping to accomplish on this business trip?

Why are you organizing these business trips?

Your plans should be based on the responses to those two questions.

For instance, how are you going to decide who goes and who stays if you aren't sending everyone?

You can determine who is most likely to gain from the trip if your goals are clear. Your company will gain from those individuals in turn.

Communication is Essential

However, you can cause resentment if you failed to let your employees know what your objectives were.

There will be others who believe they ought to have been chosen for departure. Others will feel let down because they were selected.

Everyone will comprehend why you sent them on this specific trip or didn't send them if they are aware of the goals.

Send your travelers on their way only after you've thoroughly explained the goals to them. Make sure they are aware of all the details of the trip and what is expected of them.

Inform them of their designated "on the clock" and "off-duty" times. They will value the forethought and find it helpful to know what to anticipate.

Budget Your Travel Expenses

Once you have a thorough policy for business travel, you'll reduce unforeseen costs.

You'll be adding minor details here and there that you missed or forgot to include in your initial run-through. After then, every journey will essentially follow the same procedures with some variations.

Maintaining a steady business relationship with companies you utilize regularly is also beneficial. Everyone will be aware of what to anticipate. In order to automate specific aspects of your travel program, you'll have a direct channel of communication with them and they'll know how to work within your budget.

What to Include in Your Travel Budget

A travel budget is a must-have, especially as a small business.

Now is your time to establish a framework for your finances while your staff is still limited enough to manage easily.

What you’ll include in your budget is specific to your business, but there are a few consistent items, like:

• Travel costs for transportation (e.g., airfare, rideshares, car rentals, personal travel vehicles)

• Parking costs in garages or on-site locations

• Special vehicle parking for buses, bulldozers, and other oversized vehicles

• Lodging costs

Be Specific With Your Limits

Establish expenditure caps and guidelines within the budget's parts. Saying something is approved is one thing, but keeping it inside your anticipated budget is quite another.

A category for costs such as taxes, petrol reimbursement, and per diems should be included. Using the government's standards is made easy because they are already laid out in frameworks that are specific to the IRS.

Some features lack precise definitions. The cost of transportation planning will vary based on a number of variables, including the kind of journey, the destination, and the starting point.

The season also has a significant impact. It will cost far more to send your staff into a popular tourist destination during peak travel season than it would to choose a different day or location. For maximum cost reductions, pick the less popular hours if your timeframe is flexible.

Give Travelers a Checklist from Your Travel Policy

Do you currently have a company travel policy in place?

If not, you should do that before sending anyone on a work trip by following this guide.

Your travel policy should consist of a checklist that each traveler can utilize and be simple to complete with few stages. Since most first-time users won't know what a per diem covers, make sure to make it clear.

Typically, per diems cover travel, hotel, and some food. They each have a cap on the amount they cover, and they don't cover entertainment.

Your travel policy should make all of this explicit. Make sure you re-administer the policy to all passengers, even if you have already done so.

Send your staff an email with the checklist you have if they need it in order to document the trip and get paid. They are more likely to fill everything out without your having to chase them down if you make it easier for them.

Be Open to Change

Having a predetermined travel policy is important, but you also need to be flexible with it. If you're not traveling yourself, you'll find out when adjustments are necessary through the individuals you're traveling with.

Maintaining flexible policies and transparent channels of communication are critical in small businesses. If your staff doesn't feel appreciated, you'll have a hostile atmosphere and high employee turnover.

Remain receptive to receiving feedback.

What was successful?

What might you alter?

Every employee is impacted by corporate policy. Their ideas can stimulate creativity and increase output.

Additionally, you'll need to keep abreast of safety procedures as well as governmental norms and regulations. Your staff depends on you to send them to secure locations.  This was made clear by COVID, but it should always be a normal practice in any company's operations.

Frequently Asked Questions

What are some tips for maximizing value when planning corporate travel?

When organizing business travel, it's best to combine several activities into a single schedule to save money on the total cost of the trip. Delegating planning duties, maintaining open lines of communication, and establishing clear objectives all contribute to process optimization and cost-effectiveness.

How should businesses set up their corporate travel budget effectively?

It is essential to factor in all required costs, such as housing, meals, and transportation, when creating a corporate trip budget. Putting expenditure caps on each category aids in cost containment. Businesses can streamline procedures and comply with government regulations by utilizing IRS-specific frameworks for taxes, gas reimbursement, and per diems.

Why is it important to have a clear travel policy and be open to change?

Employees are guided by a well-defined travel policy, which also ensures compliance and reduces unforeseen costs. It describes safety measures, expectations, and reimbursement policies. Nonetheless, allowing for employee input and making appropriate policy adjustments in response to modified safety protocols and governmental requirements enhances the efficacy and efficiency of the business travel program.

Conclusion

For companies of all sizes, efficiently controlling corporate travel expenses is crucial. You may create a thorough travel policy, set explicit budget constraints, and maximize your trip planning by putting the advice in this article to use.

Recall that the key is to maximize value, assign responsibilities to others, and clearly communicate goals—not to cut corners. Through continuous improvement and integration of staff input, your business travel initiative can be improved over time.