Home | Contact Us | Member Login

Tips for Managing Entrepreneurial Business Travel

By Elaine Osgood, President of Atlas Travel International

Corporate travel costs are predicted to increase 7 to 13% in 2007. Large companies can negotiate rates based on their annual travel spend, but entrepreneurial companies need to be more creative in controlling their costs.

ENLIST A TRAVEL MANAGEMENT COMPANY

A mid-sized corporate travel agency works best for entrepreneurial companies, as they are large enough to have the necessary resources and small enough to provide appropriate service levels. The assigned customer service representative will provide reports, help with policy development, identify supplier contract opportunities and contract negotiations.

DEVELOP CORPORATE TRAVEL POLICY

If you are developing a policy for the first time, the travel agency should provide samples from similar sized accounts as a guideline. Even minor policy changes can save significant money. For example:

Mandate a corporate travel credit card
Book within $100 of the lowest logical airfare offered
Refill gas for car rentals
Book a mid-size car or smaller
Require that travel booked less than seven days in advance require approval.

IMPROVE SUPPLIER MANAGEMENT

Many airlines have a small-business program that will offer points accrual towards upgrades and complimentary tickets. Some car rental companies offer special programs as well, and many hotels do the same. If a small company cannot generate enough hotel rooms for a discount, travelers who are AAA members get a significant rate discount at most hotels, so corporate purchased AAA memberships can save money. Airport parking costs can be cut in half if the traveler is willing to park off airport grounds. Finally, travelers can use Zagat or a similar guide to find great restaurant options within close proximity that stay within the trip's budget.

IMPLEMENT A MANAGED TRAVEL

ONLINE BOOKING TOOL

To reduce transaction costs as well as lower average ticket price, implement an online booking tool that provides agency and Internet fares. This will allow you to track travelers for security and data purposes, manage budgets and improve policy compliance.

CONSIDER TRAVEL ALTERNATIVES

If a face-to-face meeting is not required, travel can be replaced by "webinars" and conference calling. As technology improves, these alternatives become an even more viable option.