Business travel savings, strategies for maximum savings
With the volume of business travel on the increase, many companies have found it necessary to set up a department dedicated entirely to their needs. This department is responsible for everything from the logistical organization of employee travel, to its financial and accounting management. In this respect, the travel manager is playing an increasingly important role. And with good reason: he or she is the person who will design and implement the company's travel policy. He or she is also responsible for finding ways and means of ensuring that, in the long term, business travel has no negative impact on the company's financial health. Focus on the strategies deployed by both companies and travel agencies to achieve maximum savings on business travel.
Business travel savings: rates and services negotiated directly with suppliers
While the use of specialized travel agencies is now a common corporate practice, it's not always the case. Alternatives do exist. These include the possibility of negotiating rates and services directly with suppliers.
Purchasing groups have sprung up in large companies. Their purpose is to negotiate services such as transport tickets, accommodation and many others. Many of them have set up agreements that enable them to benefit from preferential rates, or reduced or waived penalties for ticket changes.
It should be noted that this is an advantage for both customer companies and suppliers, as it guarantees a minimum fill rate. It should also be noted that this method does not exclude another practice, which is the search for the most advantageous rate at the time of booking.
Book at the best market rate for business travel savings
This is the second way to save money. In fact, the vast majority of companies now have online booking software. This enables them either to manage them via a travel agency, or directly in-house.
In both cases, it's a matter of choosing the best ticket or accommodation on the market at a given moment, and usually well in advance. The rule on the business travel market is clear. The earlier a reservation is made, the less expensive it is likely to be.
Airlines and rail companies have understood this and offer a whole range of transport tickets, with varying degrees of flexibility, enabling employees to adjust their ticket to suit their schedule.
Both methods have their advantages and disadvantages. If a company negotiates directly with a supplier, it only has access to the latter's offer. On the other hand, using an SBT, i.e. a travel agency, gives access to a much wider choice of offers and promotions.
Finally, systems such as dematerialization not only save companies time and money, they also save them money. Invoices issued by service providers are transmitted directly to the client company's accounting system. Expense claims are entered automatically, drastically reducing the margin for error. As a result, the company is in control of its travel budget before, during and after the business trip.
Business travel agencies and business travel savings levers
Just as companies are deploying strategies to save money, specialized travel agencies are keeping up with the times, offering a wide range of cost-saving levers. CTA Business Travel offers its customers the following levers (non-exhaustive list):
● Access to one of the largest supplier inventories on the market
● An ultra-competitive pricing database, updated in real time
● Search for the best fares on all airlines, including low-cost carriers
● Querying negotiated rates
● Centralization of all customer company data
● A comparative study for each travel request, accompanied by an estimate
● The strength of the TourCom network, with over a million negotiated rates
● Fast, efficient teams
● Verification of reservations to guarantee the best rate
● Constantly evolving technology
● Setting up regular reviews
All these factors enable CTA Business Travel to guarantee savings of between 10 and 15% for its corporate clients. Another advantage of the business travel agency lies in the fact that, thanks to the centralization of company data, the travel policy of client companies is scrupulously respected by employees, whose choices are circumscribed at the time of booking.
Your personalized audit
Would you like a personalized audit of your business travel needs?
Our experts are at your disposal: