Whether you’re responsible for managing travel - or making the actual bookings – you are most likely tasked with saving money. This can be challenging enough given the complex business travel landscape, where often times employees’ travel plans can change day-to-day. What’s even more challenging that you may not be doing nor have the time to do is to understand the true cost of your company’s overall spend and how it compares to other similar-sized companies.
Today’s Business Travel Spending Stats
While business travel is critical to virtually every industry and business, some sectors travel much more than others. Food Services leads the way followed by Utilities, Transportation Services and Manufacturing. Travelers in North America spent over $320 billion on business travel in 2016, primarily on domestic trips. Your company probably isn’t anywhere near the billions, but there are undoubtedly areas for cost savings and additional services at nearly any spending level. Companies that budget from $2.5 to $5 million for business travel spend about $500 on domestic airfare and roughly $2,000 on an international plane ticket.
Business Travel Expected to Grow
Business growth in 2017 is expected to prompt a rise in travel spending in 2018 and beyond, especially on airfare with an increase in the total number of trips, according to a poll by the BTN Group. For small to medium cities, the average trip cost per day is in the $250 to $300 range, which includes hotel, car rental and dining. More expensive major cities have an average per diem closer to $400, and ultra-expensive cities like New York and San Francisco are well over $500.
How Much is Your Company Truly Spending?
And How Much Can it Save?
Business travel accounts for one of the most controllable, yet often ignored expense line items. Most companies that handle their business travel arrangements in-house typically do not have a handle on the real costs nor the impact to the bottom line. And with the expected growth of employees traveling, this can quickly become an area that requires more attention.
At Travel Leaders Group, we assist our corporate clients in not only cutting expenses by negotiating the best possible rates with airlines, hotels, and car rental suppliers, but also we advise on the best way to create visibility into the true spend of your company’s business travel expenses. In addition, we help implement best practices for the process of booking travel to ensure that our customers obtain maximum value for every dollar spent. That’s not just talk—we walk the walk. Travel Leaders Group saved our mid-sized corporate customers an average of $177 per air ticket in 2017.
Buying power, like the kind that Travel Leaders Group has amassed over the years, can provide your company with the best discount opportunities available. Plus, thanks to long-term relationships with airlines, hotels, and rental car vendors, you’ll get access to rates and amenities that are not available to the public, while saving money and providing value to your company’s most valuable assets, its employees. What’s more, with Travel Leaders Group, your spending will be tracked to ensure full visibility so that you can finally answer how your spending stacks up to the rest.