Experts Predict Decrease in Business Travel Perks
Business travel is on the rise thanks to the recovering economy and low gas prices. Due to these positive trends, the Global Business Travel Association predicted that the number of corporate trips taken will continue to increase through 2016. However, even though the volume of business travel will likely increase, the GBTA noted that travel managers are looking to cut costs by eliminating travel perks.
“Employers are becoming strict about expensing luxury services.”
Luxury Services No Longer Approved Expenses
As travel managers send their road warriors on domestic and international trips, they are looking for ways to keep company expenses down. The GBTA explained that many employers are achieving this goal by being more stringent about what travel perks the company will cover.
This means that travelers who are used to flying first-class and staying at luxury hotels may have to downgrade to more reasonably priced seats and accommodations. Similarly, some businesses are capping what their employees can spend on food and personal entertainment.
“Companies see that there is value at times in using a premium class of service. There is value at times at spending more to entertain your clients. But you do that with a specific business purpose in mind,” explained Mike McCormick, GBTA’s executive director.
How Much Can Employers Save?
Even making small policy changes to cut back on luxury services can translate into serious savings for employers. Companies that formerly allowed travelers to fly first-class may want to consider adjusting their policies to cover only business-class seats. These plane tickets usually offer the same amenities as first-class seats, but at half the price. This can translate into thousands of dollars worth of savings per flight and tens of thousands over the course of a year. Similar changes can be made to hotel policies, and the saved money can go toward other important company purchases.
Employers Should Make Strategic Travel Policy Decisions
Travel managers who are implementing stricter travel expense policies should be sure to take duty of care and worker comfort into account. It may benefit the company to cap hotel expenses, but if this number is too low, then workers’ productivity may suffer. Make sure the limits being set are reasonable and allow road warriors access to necessary amenities like WiFi and a quiet work environment.
Similarly, workers may benefit from an affordable car service option like GroundLink. When travelers are able to expense airport pickup and drop-off in a quality car, they will feel secure and be able to focus on their work.
“GroundLink’s dedication to duty of care makes it a great option for busy business travelers,” explained Dean Sivley, GroundLink’s CEO. “Travel managers who encourage their employees to use GroundLink will know that their workers are safe throughout their travels. Plus, GroundLink’s pricing transparency can help to keep company costs down.”
Choosing high-quality, affordable travel vendors is a win-win situation for road warriors and their managers.