How to Prepare an Ideal Travel Budget for Your Business?

Corporate travel has been substantially lower than in previous years, but your recent spending has most certainly included purchasing materials and equipment to secure your travelers. Personal protective equipment, contactless payment software, and additional health and safety communication materials could all fall under this category

Fremont, CA: Despite difficulties with new variations of COVID-19 and subsequent surges in cases, the travel sector has demonstrated its endurance during the trials of the last two years.

According to a recent Skift study, 45 percent of business travel decision-makers believe their organization's pandemic-related travel policy modifications will be temporary. In the same poll, 22% of respondents stated that their organization has not changed its policy.

These figures indicate that when cases decline, and the overall travel industry recovers, corporate travel may revert to pre-pandemic levels. To prepare for the resumption of business travel, create a travel budget that best serves your teams and employees.

Here are some steps to consider:

Consider Indirect Costs

When planning the budget for business travel, it's essential to account not only for direct expenses like airfare and hotel stays but also hidden costs. The most significant of these hidden costs is the amount of time invested. This includes the hours that business travel planners spend searching for the best flights and hotels and the time spent by administrative staff in compiling receipts and processing expense reports after each journey.

Given the extensive time commitment required for manually organizing each trip's logistics, investing in a digital solution to streamline these processes for your team could be a prudent financial decision.

Create a Travel Policy

Establishing a policy for employee travel is critical to controlling the costs associated with business trips. Such a policy outlines guidelines and procedures for managing travel arrangements, ensuring that expenses like hotel stays and transportation fit within the company's financial plans.

When devising this policy, it’s essential to consider the company's budget constraints, the needs and safety of team members, and the types of travel expenses the company is willing to cover, including meals, fuel, and miscellaneous travel costs. The policy should comprehensively address all potential travel-related questions to minimize uncertainty around booking practices and other travel guidelines. Furthermore, the policy must be effectively communicated and accessible to every employee.

Save on Business Travel

In preparing yourbusiness travel budget, review travel expenditures from previous years, including any additional costs brought on by the pandemic and consider indirect expenses. One straightforward strategy to reduce the time and money spent on business travel is to engage a specialist.

Deloitte experts in travel and hospitality report that those responsible for corporate travel scrutinize expenses more closely to manage and reduce costs. Furthermore, there's a shift towards optimizing travel budgets by advocating for specialized corporate booking tools and agencies. Partnering with an organization that can help you and your team adhere to your budget effectively is critical to enhancing your travel budget strategy for the year.