Hidden costs in corporate travel

For companies with global operations, business travel is often viewed as a necessary expense. The reality is that hidden costs associated with business travel can have a significant impact on a company's budget. Transportation, meals, lodging, and insurance are examples of hidden costs. Today, we will explore the hidden costs of business travel and provide you with strategies and solutions to save money and still meet your travel needs.

In order to simplify the process and save money, many companies turn to travel agencies to handle their business travel needs. While travel agencies can provide many benefits, they can also come with hidden costs that can quickly add up. Travel agencies often charge booking fees and change fees for their services.

Additionally, they may not always offer the lowest possible fares, as they may have relationships with certain airlines or hotels that they prefer to work with. This can result in paying more for your company’s travel arrangements than they need to. Modifications and cancellations occur frequently in business travel and for each modification or cancellation request your company will need to pay further expenses.

The second area of additional fees is accommodation and especially hotels. You should be aware of the following fees when booking:

• Resort fees
  Many hotels charge a daily resort fee such as internet access, fitness centres, and pools. These fees can add up quickly and are often not included in the advertised room rate.
• Parking fees
  If you are driving to your hotel, you may be charged a fee for parking your car on-site. This fee can vary depending on the location and type of hotel, but it’s important to factor it into your budget.
• Early check-in/late check-out fees
  If you need to check in early or check out late, some hotels may charge an additional fee for this service. Be sure to check with the hotel in advance to avoid any surprises.

Now that you are aware of the different hidden fees that might increase your company’s travel budget, let’s take a look at how to better manage your company’s money.

The first thing to do to save some money on booking is to book in advance. Booking travel in advance can help to secure lower rates for flights, hotels, and rental cars.

Secondly, rely on a business travel booking tool that is directly connected to the different travel suppliers. Tools such as Tumodo, don’t charge you extra fees for your booking. You can enjoy the same travel suppliers’ prices on one centralized booking platform.

Don’t hesitate to use travel rewards programs: many airlines, hotels, and credit card companies offer rewards programs that can help your business earn points and save money on future travel expenses.

Last but not least, review your expense travel policy. Implement cost-saving policies such as restricting travel to certain days of the week, requiring employees to book economy-class flights, etc. Tumodo offers you the possibility to implement your expense policies directly in the booking app. This way, you have better management and control over the booking fees.