Cutting Business Air Travel Expenses
Controlling Reimbursements can Save a Company Money
Aug 4, 2009
A major controllable expense for many companies is business travel. Out-of-town travel is often necessary for sales or education, but also can be seen as a benefit or perk for loyal employees.
Monitoring travel expense can benefit the company is two ways. Reducing expenses for one person can allow more trips for others, or money saved on travel can be spent on salaries, supplies or other needed services.
Saving Money on Air Travel
- Businesses can save money on air travel by either using a travel agent whose goal is to obtain travel at the lowest cost, or reviewing travel itineraries before purchase to make sure the best deal is obtained.
- Employees selecting flights may choose times that are most convenient to them with little regard to cost. Some flexibility may be required, but large differences should be allowed. Unmonitored employees may also choose carriers based on a frequent flyer program, to the detriment of the company.
- In the past, it was often cheaper to pay for a hotel room on a Saturday night stay in order to get a lower plane fare, but the rate difference rarely justifies that today, especially when considering the additional cost of food or a rental car.
- When booking the flight, consider whether a non-refundable fee makes sense. They are cheaper, but if they must be changed, a fee will be required, which may make the flight more expensive.
- Employees should not be reimbursed for baggage fees or overweight baggage (unless they are carrying company items.) Generally shipping those items ahead by a shipping company is cheaper and more reliable.
Saving Money at the Airport
Airports have traditionally been a very expensive place to eat and drink. Employees need to arrive well in advance of their flight, but should be encouraged not to overindulge at the airport.
Many companies have policies that prohibit reimbursing for alcoholic beverages, although some allow it as part of a meal or entertaining clients.
Employees need to be educated on company policy and expense reports should be reviewed. All expenses should be documented on a receipt. Tips for baggage or meals should not be excessive for the area.
Some leeway may be necessary for items purchased on the plane. An expensive snack box onboard may be the only food available for a traveler on a short layover.
The company should not reimburse for personal items associated with the trip, including luggage or portfolios, even if they are purchased during travel.
United States tax laws currently do not allow deductions for airline clubs. These clubs can provide a benefit to travelers, especially during a flight cancellation, but the free liquor is a major reason why people enjoy them. Companies need to determine if there is a valid reason for purchasing a membership.
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