Modern Australian
The Times Real Estate

.

Bright Ways to Cut The Costs of Business Travel

  • Written by News Company


What a new industry means for companies looking to minimise their business travel costs.

Credit Capital business finance states, “global business travel spending topped a record-breaking $1.2 trillion in 2015, and was projected to reach $1.6 trillion this year, until the fatal coronavirus outbreak”.

That’s a boat-load of money (approximately similar to Australia’s GDP).

Is it much, you ask? Well, there are several hundred billion reasons you might think it is.

Essentially, the business travel industry entails so much more than just a trillion dollars of ‘other people’s money’ getting spent. Any moment the individual making the purchase isn’t paying; then there’s an issue of misaligned incentives.

A classic example is business travel. It’s not like employees try spending loads of cash while on their business trips, it’s just that there’s no reason not to. If somebody is going to get reimbursed, chances are they are unlikely to strain themselves to save some money. Even when the travelling employee is compliant with the travel policy of the company, chances are they will spend on the upper stratum of their allowance: Nobody in their senses would volunteer to fly on coach whereas they could be flying business class. Preparing for a required police check before your departure can save you tons of money and time during travel.

These missed opportunities for saving really add up. Hardly any small potatoes here. At an average organisation, employee overspending takes up 1/5 to a 1/3 of budget for total travel and expense (T&E). But it increasingly appears like it can be solved. If you are a business owner you really make it to a point to secure your business against financial loss and that’s normal.

Carrots vs Sticks Approach

Companies had two conventional options of responding to high travel costs. As the price of conducting business, they could turn a shoulder to employee overspending. Or they could try cutting down on costs with restrictive travel policies and tight spending limits. The first decision hurts the bottom line, while the second alternative increased turnover and employee dissatisfaction.

However, there’s a new emerging pattern in corporate travel management, one that’s based on carrots rather than sticks. Instead of punishing employees who tend to overspend while on their business trips, most establishments are opting to reward those who save.

It sounds unrealistic and attractive cutting down on costs without employees getting upset. In fact, products that allowed the business to get their cake and have a bite of it too turned out to be half-assed.

The majority of these attempts fall under the enterprise gamification umbrella, which is the application of game playing aspects to business operations to help in influencing employee decision-making. Badges, points and other forms of recognition act as rewards, which theoretically motivates employees in undertaking a desirable action like booking an affordable hotel or flight.

However, this theory has come up against human nature realities. An employee taking a business trip is nothing if not just human. Like any other person, they will act out of their own self-interest and understandably prioritise their convenience and comfort when booking a trip. The digital perks provided by gamification don’t sufficiently reimburse employees travelling to be inclined on saving.

Employer and Employee Interests Alignment

Finance experts at Wizard Finance say, “business travel savings might be challenging – especially if you have lots of employees flying to different locations at different times.”They suggest,”to minimise on spending, the rewards-based solution should be based on a practical recognition of what employees really value.

Practically, this entails giving employees an incentive which directly affects him or her to spend less. Customary wisdom suggests that you shouldn’t have to be paying employees to assist in saving company money – anyway, they ought to be doing it, right? Maybe this is why it’s not a surprise that among the first organisations to question this wisdom is the most innovative of all time

Using Its Trips program, Google made a modern travel management template. Employees in Google receive a budget before each of their trips, and in the event they return under budget, they get credits they can redeem for future travel upgrades. This has seen the employees more committed at saving today so they can splurge later on.

The system functions well for a variety of reasons. It’s equalitarian because the employees get to take home part of what they are saving the company. It’s actually pretty empowering because Google provides travellers with the flexibility to consider a wide selection of options and select the one that best fits their budget. And finally, it’s quantitative because employees get a clear-cut approximation of what is deemed reasonable to spend on a particular trip.

Travel and Expense Management: The New Normal

This is not the first Google has been onto something. Giving them sufficient grounds to take into consideration the cost of their trip can lead to more reason-minded spending. For corporate travel management, it’s the most radical or most obvious concept.

Anyhow, that main recognition has created a lot of traction in travel incentive programs for big and small organisations. There are an array of solutions that are sure to motivate employees to save on their trips.

Some, like TravelPerk and TripActions, are meant for medium and small businesses that don’t have a travel management system. A startup that provides travellers with gift cards in turn for flight and hotel flexibility uses a direct-to-consumer model.

Here are some reasons why travel incentives are where they are.

Technology. For the employee to be motivated on saving for a trip, they require a baseline of what the trip is going to cost which will need huge quantities of data to get analysed on the available prices. With technology, a business traveller can accurately plan his/her trip.

Changing Travel habits. Years of online booking, coupled together with low-cost airlines, Uber and Airbnb mean that travellers are more adept at finding cost-effective options that suit their needs. That's true for both business travel and leisure travel.

Holidays & Travel

Surprise Party Ideas That Will Leave Your Guests Speechless

Throwing a surprise party is one of the most exciting ways to celebrate a special occasion. The thrill of keeping it a secret combined with the joy of watching the...

The Most Scenic Sailing Destinations in Australia and New Zealand

Australia and New Zealand are home to some of the world’s most breathtaking sailing destinations. With vast coastlines, pristine waters, and diverse landscapes, these countries offer incredible opportunities for sailors...

A Guide to Finding Caravans for Sale for Your Australian Road Trip

From the rugged Outback to stunning coastal drives, there's no better way to explore Australia than in a home on wheels. If you're considering joining the caravan community, you're likely...

Must-Have Outdoor Gear for Your Next Trip

 Introduction Getting ready for your next outdoor adventure but not sure what gear makes the cut? Selecting quality equipment optimized for the conditions helps ensure fun and safety during backcountry trips...

5 Innovative Caravan Accessories to Enhance Your Travel Experience

Caravanning offers a unique and liberating way to explore the world around us. Whether you're a seasoned traveler or embarking on your first adventure, having the right accessories can significantly...

Conventional Tent or Roof Top Tent? Which Is Better for Camping in Australia?

For camping in Australia, it depends on factors like terrain and climate. A roof top tent is sturdy in rugged areas and elevates you above ground risks. In flat places like parks...

Choosing the Best Boat Seats: A Comprehensive Guide for Water Enthusiasts

Boat seats are not just about providing comfort during your time on the water; they can significantly impact your overall boating experience. Whether you're cruising leisurely, fishing, or engaging in...

Tips for Enjoying Hunter Valley Wine Tours

The Hunter Valley, nestled in New South Wales, Australia, is renowned for its picturesque vineyards and exquisite wines. A wine tour through this region promises a delightful experience for enthusiasts...

Melbourne to Sydney Flights: A Comprehensive Travel Guide

Sydney has a unique charm and plenty of free tourist attractions. There are many fun outdoor activities, with several tourist spots, making Sydney a popular destination for many people. For...

Davines Sustainable Haircare: Revolutionizing Eco-Friendly Beauty Solutions

Davines is a well-known brand in the world of haircare, known for its high-quality products that deliver exceptional results. Its commitment to sust...

The Role of CDNs in Enhancing Headless CMS Performance and Reliability

A headless CMS provides businesses with the ultimate freedom for content management and output possibilities across any number of channels. However...

Finding the Right Dentist in Perth for Your Dental Implants: A Complete Guide

Missing teeth can significantly impact your quality of life, affecting everything from your ability to eat and speak to your self-confidence. Dental...

Fix These 5 Technical SEO Issues Hurting Your Perth Business Rankings

Perth businesses face unique challenges when competing for visibility in local search results.  While many business owners focus on content creati...

How a Professional Bookkeeper Can Help Your Small Business

Running a small business in Australia comes with many responsibilities, from managing day-to-day operations to ensuring compliance with tax and fina...

How Pre-Employment Drug Testing Can Improve Your Company’s Culture

When it comes to curating a thriving workplace, culture is everything. It is the glue holding teams together, the driving force behind productivity...

How To Find Comfortable And Stylish Armchairs Online

Shopping online can be tricky, particularly when it comes to buying furniture. All homeowners, including you, want an armchair that is stylish and c...

Rope Rescue Training Explained: Techniques, Tools & Skills

Rope rescue training is critical for emergency responders, industrial workers, and anyone who operates in high-risk environments. Whether you're a fir...

The Different Career Paths in a Law Firm: From Clerk to Partner

The legal profession offers a structured yet diverse career path, with opportunities ranging from entry-level positions to esteemed leadership roles...

The Importance of Exercise for People with Disabilities: Adaptive Workouts

Exercise is a fundamental part of maintaining physical and mental wellbeing, and this holds true for people of all abilities. For individuals with d...

Planning a Construction or Renovation? Don’t Overlook the Plumbing!

Building or renovating your home is an exciting journey—designing layouts, selecting finishes, and watching your space come to life. However, while ...

Bathroom Tiling: Trends, Materials and Installation Tips

The world of bathroom tiling has come a long way, with new trends, improved materials, and innovative installation techniques, making it easier than...

Best Products to Increase Hair Density: What Really Works?

Do you want thick, voluminous hair? We get you!! There’s just something about a full head of hair that makes you feel more confident. But what do...

The Cost of Back to Base Security in Sydney: Is It Worth the Investment?

Sydney is a fantastic place to live. The beaches, the cafes, the culture. There’s a reason people are willing to pay premium prices for a spot in ...

Australian Workplace Engagement Declines Amidst Shifting Employee Priorities

Global leader in employee engagement and HR technology, Reward Gateway, has today released its second annual Workplace Engagement Index. The report...

The Right Mix: 5 Tips for Choosing Products Your Customers Will Love

Photo: Marcella Marcella / Unsplash Crafting the perfect product offering is difficult. You need to strike a delicate balance between building a busi...

Septic Tank Pump Out Cost: What to Expect in 2025

The size of the tank, the location and the rates charged by the service provider all affect how much a septic tank pump out will cost. Every thre...

How Machine Learning is Personalizing Orthodontic Treatment

Orthodontic treatment has seen a significant transformation over the past few decades, largely due to advancements in digital dentistry and artificial...