Whether you’re a small business owner or you work for a large conglomerate, business travel can be a huge factor in helping a business to grow. Though the quickest, and often the most used, form of travel is by the airways, trimming your business travel expenses no matter which mode of travel you choose is important for any business.
Oxford Economics, an economic forecasting agency, revealed a recent study that showed there is a definite correlation between a company’s business travels and the amount of profits it makes.
The study suggests that for every single dollar a company spends on business travel it can generate an average of $3.80 in profit and $12.50 in revenue. While these figures are promising, many businesses have chosen to cut operating expenses by cutting back on the amount of business travel they engage in as a way to keep their operating cost in the black.
This approach to cutting costs, however, may turn out to be a bad move for many businesses. The alternative is to find ways to continue with business travel while reducing the amount of money that is invested in it. There is a several way of doing this.
Experts agree that keeping business travel to the essential trips such as those that result in face-to-face meetings with clients, and trips that are sales related, are a good way to cut travel expenses. A company can stay competitive, and cut travel expenses, if they limit themselves to these types of trips.
Partnering with a business travel agency is also recommended in order to trim travel expenses. A travel agency can help a business come up with a basic outline of what their travel needs are, and then come up with a travel policy that fits into a company’s unique budget.
Other ways of trimming business travel expenses is to negotiate with airlines, railroads, buses and hotels that a company uses on a regular basis. In these tough economic times, these suppliers rely on a company doing business with them just as much as a company relies on them.
For most businesses, travel is a crucial part of their profit making strategies. So, rather than cut business travel expenses completely, trimming these costs is a much better solution to cutting costs and increasing profits.