MANAGING YOUR BUSINESS TRAVEL

Grant Appleton, Commercial Director UK, Hotel Reservation Service

With travel expenses often the second highest overhead after salaries, managing your companies travel budgets effectively can deliver a significant lift to your bottom line, writes Grant Appleton

There is a myriad of travel companies both in the real world and the digital world who are only too happy to take your money without offering you the best travel advice or the best prices available for your specific requirements. Finding the best solution for your needs can be a lengthy and time consuming process. The tips below are designed to help guide you through the jungle and help you make savings along the way. The most important thing to do is shop around.

Booking via a bu siness travel agent

Don’t blindly accept your agent’s first quote because it may not be the cheapest. Most business travel agents and travel management companies (TMC) have specially negotiated commission levels or other financial incentives with particular suppliers so will always push these first. Be sure to ask for a selection of prices from different hotel chains, airlines and so on. In addition, you’ll generally be charged a booking fee or management fee by the agent. HRS research found that on average companies were being charged £22.50 per booking which is a hefty sum on top of the price of the hotel room, flight, train ticket etc so watch out for those hidden costs.

Booking via a specialist

Many specialist agents, such as consolidators (flight specialist), or online hotel specialists, such as HRS, negotiate very competitive rates from suppliers, which they pass on to the end user. Often they are the cheapest option, even cheaper than booking direct. These specialists are particularly cost effective for long haul journeys and for travel, which requires a two or three night stay.

Booking Direct

Don’t just check the budget hotel chain websites or the low cost airlines’ sites. They aren’t always the cheapest, particularly if you need to travel immediately. They can be cheap if you book months in advance, but for most business travellers it’s rare to have the luxury of planning meetings that far ahead. Additionally, often the budget hotel chains aren’t in the most convenient locations meaning that car hire may have to be factored into the equation. Make sure you check the hotel’s location and facilities as well as its price.

Booking via a general travel web site

Be careful when booking via general travel sites. These sites may not always be as competitively priced as specialist sites or agencies. Specialist sites often have specially negotiated rates which are unavailable to ‘tourist’ or ‘leisure’ sites.

Consider using independent hotels

If much of your business travel is within the UK and Europe then you should consider using independent hotels, which account for 70% of the market and are frequently competitively priced, offer a high standard of service and are often conveniently located. Most travel agents won’t offer you the option of booking with independents as these hotels are generally not linked into the expensive booking systems that agents use and can’t afford to pay agents high commissions. By using specialist agencies which offer a much broader choice of hotels, including many independents, you can get an informed overview of what accommodation is available in the area to which you are travelling.

Avoid Cancellation Fees

Frequently the cheapest rates can turn out to be a false economy, particularly if you need flexibility. If you think there is a chance of your meeting being rescheduled then book a hotel that isn’t going to charge you an expensive cancellation or rescheduling fee. Some hotels charge as much as 50% or more of the cost of the room if you cancel or change your booking within 24 hours of the date booked. By using specialist agencies you can avoid these fees. For example, if a hotel is reserved through HRS, free cancellations are accepted up to 6.00pm on the evening the room has been booked for.

Also try to avoid hotels, sites and agents that insist on pre-payment in full. These are generally aimed at leisure travellers and once you’ve paid the fee, you’ll struggle to get your money back if you need to reschedule and often will be charged administrative costs. Remember, a little time spent researching your trip can pay dividends! Happy hunting!

Contact: For more information on how HRS can make the most of your travel budget, please visit www.hrs.com/corporate