Productive Strategies for SMEs to Optimize Travel Budget

By CFO Tech Outlook | Thursday, November 22, 2018

Small-to-medium enterprises (SME) are constantly making efforts to improve their travel management today. While traveling budget may not be on the priority list, it should be paid attention as it becomes more significant, especially to decrease cost factors that come in regards to the travel industry. For SMEs, it’s a bit challenging. As business travels become more essential, one of the most challenging tasks for the SMEs is the management of their travel budget.

Enquiring and booking the travel by searching through various websites or applications is less productive and time-consuming. Rather, if it’s done through a single website or an application, it gives more visibility and will be much productive, feasible, save time and cost. Thus, organizations from different industries that became a part of the travel such as, airlines, hotel, car-hire firms, and credit card companies, are providing exciting offers, discounts, incentives, and loyalty programs for their customers. Using those websites can be a money-saving strategy for travel budgeting.

In most of the websites, travel booking in advance will cost lesser than those booked on the last second. On the basis of the data from corporate management benchmarking, flight bookings before eight to fourteen days in advance of travel date will save about fourteen percent of the total travel fare. Creating or planning a travel policy in a team will give the team members more clarity and guidelines about the travel expenses and the type of travel. At the same time, establishing a uniform reporting system for the travel expenses of the employees will also result in a better travel plan, and this will enable SMEs to track the budgets quickly.

When it comes to payment and expenses, using a single credit card for all traveling purposes will be more effective to maintain the traveling records and increase the capability of gaining more loyalty points. This can provide more benefits like cash-backs and insurance. Use of travel apps and taxi or ride facilities like Uber and Ola will also reduce humungous costs that come in between traveling. These methods will be highly productive for SMEs to provide an excellent traveling experience and within budgets, and at the same time, gain additional benefitsthrough discounts and loyalty programs.

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