Traveling expenses
First steps
increase sales
promote growth
Friendly support
| target group | Basic statement | cost relevance |
|---|---|---|
| Companies with a high volume of travel and a decentralized booking structure | The centralization of all bookings can sustainably reduce costs. Important here are price negotiations that are updated daily instead of traditional booking channels via travel agencies. Rigid contracts with airlines or hotels are less efficient these days and are being replaced by portal solutions. | Very high cost savings possible in all areas of travel management. |
SMEs that they are at a disadvantage when it comes to negotiating prices and discounts compared to large companies. But the problem usually lies elsewhere. Because in many companies there is no usable data on travel management. Business trips are usually booked uncontrolled and individually as required and then billed. The same applies to travel expenses and costs for fees, etc. Even if there are contracts with a service provider, these are hardly ever questioned. The effects are clear: discounts are not and cannot be used, neither for the time of booking nor for the quantity. Hotels are booked purely on the basis of location, but not on the basis of cost considerations. Expenses are billed in full, rental cars and flights are selected based on bonus miles. Flat rates are paid even if an overnight stay was cheaper. The basis for cost reduction must therefore be the recording and systematization of all travel activities in the company in the first step. Although this is a very detailed task, it gives an important overview of the situation and the biggest cost guzzlers. The aim is to implement travel management with clear guidelines. Another goal can be cooperation with a travel portal. These portals are vastly superior to travel agencies in terms of daily rates and are also active worldwide. The large portals now offer online tools for companies in which the company's own hotel rates and the booking and billing system are comprehensively stored. Technically, these requirements are solved by integrating a travel management system into the intranet.
Travel expenses checklist
- Bundle booking activities
- Current prices instead of rigid contracts
- use online platforms
- Implement travel management system
case studies
- A chemical company had the largest block of costs in flight costs. These and all other services were booked with a provider. By bundling all services relating to business trips with a single provider, there were savings of almost 25 percent.
- An international manufacturer of lift solutions had accommodation costs that accounted for more than 50 percent of the total travel costs. Only then came flight and car rental. The decisive factor here was the introduction of electronically supported travel management, which defined all quality requirements and processes company-wide. A total of almost 9 percent of costs could also be saved through individual analyzes of the cost blocks.
- A specialist in mechatronics spent around 450,000 euros a year on flights and services, with flights accounting for 90 percent of the costs. The flights were booked with a travel service provider, but the service was not convincing. International flights were made with two airlines at corporate rates. The tender also required service providers and airlines to support additional services such as online booking, guidelines and reporting. A new provider was able to convince with its comprehensive offer, there were hardly any differences in price. With consistent budgeting and comprehensive implementation, 33 percent could be saved.
- A system manufacturer for printing technology spent around 120,000 euros annually on travel expenses, with the majority going to overnight stays. As part of the optimization, booking was switched to an online platform, and the additionally negotiated company rates were consistently benchmarked. Savings of almost 16 percent could be achieved here alone.
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