10 strategies to help reduce corporate travel costs

A well-defined corporate travel policy can play a valuable role in supporting effective travel management and cost control. If needed, define your current policy so it sets clear guidelines on booking procedures, preferred vendors, and travel class. This helps employees to know exactly where, how, and when to book travel to align with your company’s objectives and savings goals.

You can also make it easier for employees to stick to your policies by incorporating platforms like Uber for Business into your booking processes. Uber for Business integrates with your existing travel policies and is available in over 70 countries.

By designating Uber as a preferred vendor, you can centralize billing, monitor spending, and apply travel policy rules to ride and meal expenses, all while offering employees flexibility and ease during their trips. This structured approach supports cost savings and enhances travel efficiency.

Looking to save on travel? Consider setting deadlines for early booking instead of waiting until the last minute.

Booking flights, hotels, and transportation ahead of time can help you secure lower rates. In fact, data shows that booking domestic flights at least 28 days before departure can save travelers up to 24% compared with last-minute fares. If you’re booking international flights, your deadline should be close to 60 days out—and no more than 4 months out—for an average of 10% savings. Imagine the overall company savings if every one of your traveling employees saved 10% to 24% on flights alone.

Remember, similar savings apply to hotels and car rentals, where early reservations often unlock discounts or special rates. Encouraging advanced booking requirements can help companies achieve better rates and lessen the impact of higher costs associated with last-minute travel decisions.

If you haven’t explored travel management software yet, you could be overlooking valuable cost-saving opportunities.

Why? Travel management software platforms centralize all your travel bookings, making it easier for employees to access preferred vendors and negotiated rates. With these tools, for example, you can automatically compare flight, hotel, and car rental options, helping you find competitive deals in just a few steps.

Beyond booking, travel management software provides automated expense tracking to record costs in real time. It also supports policy compliance by flagging out-of-policy expenses upfront, helping you stay within budget.

Unlocking exclusive deals with airlines, hotels, and car rental companies isn’t just for the big players—it’s a smart move for many businesses looking to cut costs and enhance travel perks. Establishing corporate accounts with travel vendors opens the door to a world of benefits, from discounted rates to priority services. For more detailed strategies on managing travel effectively, check out this guide to corporate travel management.

When negotiating these deals, start by showcasing your company’s travel volume and loyalty potential. Vendors love steady business, so emphasize the long-term value of your partnership. Don’t be afraid to shop around—compare offers from different vendors and use the competition to your advantage. Bundling services, like pairing hotel stays with car rentals, can also sweeten the deal, leading to even bigger discounts and perks.

Loyalty programs with airlines, hotels, and car rental companies can be a potential game-changer for your travel budget. By signing up for these programs, your company can earn reward points with bookings, which can later be redeemed for business-related flights, hotel stays, or car rentals. As employees take business trips, the points they earn accumulate, creating opportunities for significant savings on future company travel.

These programs also often come with perks like priority boarding, room upgrades, and waived fees, adding value to each trip without additional expense. Including loyalty program enrollment in your travel policy and using points for business travel helps you stretch your budget, delivering both savings and a smooth travel experience.

If the pandemic taught us one thing about corporate travel, it’s this: not every meeting needs to happen in person to be productive. Substituting nonessential travel with virtual meetings is a simple way to cut (or eliminate) costs while maintaining business efficiency.

Reducing the frequency of business trips not only saves money on flights, hotels, and meals, but it also frees up valuable time that employees can spend on other tasks. By promoting virtual meetings for routine check-ins or internal discussions, companies can reserve travel budgets for more critical, in-person engagements. Learn how to maximize the ROI of business travel by making smarter choices about when and how to travel.

Think of travel bookings like an insurance policy—the more you bundle, the better the deal. Instead of spreading your travel needs across numerous vendors, you might consolidate your bookings with a few preferred partners.

By funneling more business to select airlines, hotels, and car rental companies, you increase your negotiating power. Vendors appreciate loyalty and consistency and often reward it with bulk discounts, better terms, and exclusive perks.

Beyond the cost benefits, this strategy simplifies vendor management, so you don’t have to deal with the complexities of juggling multiple suppliers. With fewer vendors to manage, you’ll enjoy easier invoicing, stronger partnerships, and more time to focus on other priorities.

One of the key benefits of today’s corporate travel software programs is the ability to closely track travel data. This detailed insight helps you monitor spending, anticipate trends, allocate resources more effectively, and manage costs.

For example, the Uber for Business Dashboard offers a centralized hub that provides real-time tracking of employee rides and meals. There, you can set ride and meal limits based on day, time, location, and budget, helping to make sure all expenses stay within your company’s guidelines.

Introduce clear per diem guidelines to help manage spending for traveling employees. These guidelines serve as a flexible framework that may help keep costs more manageable. When daily allowances for meals, lodging, and incidentals are clearly defined, it can help reduce uncertainty and help prevent unexpected expenses.

Setting these guidelines is only part of the solution, however. It’s equally important to promote adherence to these limits. By doing so, you can ensure that spending stays within the budget, helping to protect resources and avoid unnecessary financial strain.

As the travel landscape evolves—with shifts in costs, technologies, and external factors—keeping your corporate travel policy current can help it remain effective and relevant.

To support an adaptable travel policy, consider these tips:

• Schedule periodic assessments. Regularly assess your travel policy to align it with the current state of the travel industry and your company’s needs.
• Gather feedback from frequent travelers. Gathering feedback from employees who travel often can highlight practical insights and areas for potential improvement.
• Stay informed on industry changes. Keep an eye on fluctuations in airfare, accommodation rates, and transportation options, and adjust your policy as needed.
• Incorporate new tools and services. Look for emerging technologies or services that can enhance efficiency, promote adherence to policies, or optimize costs.
• Adapt to new trends. Flexibility within your policy helps it adapt to unforeseen changes in the travel landscape.

Regular updates to your travel policy can help it stay in sync with your organization’s goals and keep travel expenses manageable.