5 Reasons to Cut Back on Business Travel

With travel expenses on the rise, travel-heavy businesses may find themselves more in the red with every flight they take.

Depending on the return on investment and the importance of the trip itself, business travel could end up having a reverse effect in terms of company profit over a period time.

So, with business budgeting in mind, here are 5 reasons your business should cut back on travel for the quarter, the year, or indefinitely:

1. Air Travel Prices

No matter which way you cut it, the cost of air travel is on an almost continuous upswing. Because of rising fuel costs, airlines have to cover costs by turning the expense over to you, the business traveler. Domestic travel is one thing, but when businesses send employees overseas, the prices really begin to travel sky high.

According to the Global Business Travel Association, international flight costs and travel expenses are already 30% higher than domestic travel. Add to that airline fees and flights alone are enough of a reason to keep your employees grounded. So, try to book as early as possible and only send essential employees if air travel is absolutely necessary.

2. Rental Car Rates

Just because you reach your destination city doesn't mean the travel expenses stop.

Rental car rates are also on the rise depending on location, taxes, insurance, and other fees. In other words, the more popular the location, the higher the rental rates are. Not to mention gas will cost your company a pretty penny too.

For larger cities, your business instincts might lean you toward taxis, but yellow won't save your company on green either.

In fact, one taxi ride from the airport to the hotel could cost just a much as a day car rental. So, when it comes to ground travel for business purposes, look into hotel and airport shuttles or take public transportation.

3. Hotel Costs

The rising cost of hotels is yet another reason to cut back on your company's business travel. Room rates in most major cities are always on the upper end of the rate scale due to popularity and vacancy.

And, with hotel operating and labor costs rapidly increasing, the stay portion of business travel is becoming more expensive than a trip to the mini bar. So, if room and board is a business travel must, look for deals online and request that your employees room together if they're comfortable doing so.

4. Discretionary Spending

Whether it's wining and dining potential clients or tipping the valet, travel stipends are real budget breakers.

The cost of keeping an employee fed while on the road sometimes isn't worth the trip itself.

But, if that business trip is simply unavoidable, keep it reasonable by creating a cost effective travel budget and have your employees stick to it.

5. ROI vs. Realistic Expectations

Sometimes the cost of travel can end up creating unrealistic expectations on the business's behalf, which translates to unnecessary pressure for traveling employees.

If your business will only break even in the travel expense department if the traveling salesperson breaks a sales record, then the trip may not be worth it.

Cutting back on business travel doesn't mean cutting back on business altogether, so run the numbers before you send your employees airborne.