Worldwide companies optimize travel budgets for a profitable ROI impact

As the world gets more digitized by the day, we may consider corporate business travel less critical for a company’s expansion worldwide. Meetings usually take place on video communication platforms, while sealing business deals is easy to perform online through an email exchange.

However, face-to-face connections and engagement seem to matter more than ever because companies seek organic relationships with customers, partners, and suppliers. At the same time, the knowledge and expertise gained from fundamental interactions are incomparable to what social media offers us.

Real communication also involves nonverbal gestures, listening, and rapid feedback, all of which contribute to seamless business partnerships. These factors play a decisive role in business growth, building meaningful relationships, and understanding different cultures.

Hence, companies are boosting budgets for financial benefits. Let’s see what it’s about.

Survey shows interest in ROI from corporate travel

According to the Value of Business Travel Report, C-suite business travel is supposed to experience a boost in budgets, especially in the US, to expand into new markets. Another reason includes the interest in return on investment, as businesses concluded that in-person meetings contributed significantly to sales growth.

CEOs also stated that business travel improves employee retention and makes the job more attractive to potential employees. Workers who travel for work purposes seem more likely to remain at their current jobs, especially since these tasks expose them to learning experiences.

Companies can maximize ROI through corporate travel

Business travel offers some excellent tips for organizations to improve their revenue. For example, businesses can speed up the booking process with the help of a travel management agency and negotiate highly competitive prices.

Another efficient strategy is establishing a clear travel policy to reduce confusion and clearly communicate how it should be leveraged. This way, employees can offer feedback on the policy’s efficiency as their level of understanding helps them notice improvement opportunities.

What should a travel policy look like?

Whether you’re at the beginning of establishing how travel benefits the company or are looking for improvements, a corporate travel policy can do more than it seems. It will help manage travel logistics and costs and nurture a culture of safety and security. So, here are some aspects to consider when creating it:

• Employees eligible for traveling;
• Risks and liabilities;
• Reimbursement assessment;
• Keeping records and tracking finances;
• Insurance companies and contracts;

At the same time, a less discussed matter within the travel policy concerns how employees should behave when reaching the destination. They must safely use the technology provided, balance the time between personal and leisure activities, and communicate efficiently.

Learn how to improve your corporate travel

Success stands in efficiency and organization. That’s why you must be careful when booking corporate travel because the process can be complex due to time-consuming research or expense reporting. You could designate a team responsible for this task, and they can make lists of preferred travel agencies or online platforms with which you can continue collaborating in the long term.

It’s also crucial to learn how to manage expenses and budgeting, especially since a significant number of travel expenses can be tax-deductible. Saving money is every company’s goal, so you can achieve it by setting a budget and having clear guidelines for employees regarding spending. Remember that corporate credit cards offer significant rewards and cost-saving opportunities.

Still, nothing’s more important than the employee’s safety while abroad, especially when emerging into a totally new culture. Business trips might not be safe from injuries, emergencies, or theft, which is why travel insurance is so important.

What about sustainable corporate travel?

Although corporate travel has plenty of benefits for companies, we can’t ignore the fact that such travel can be detrimental to the environment. We already know that aviation CO2 emissions account for 2.5% of pollution, which is a considerable amount. Thousands of places fly every day across the globe, so what can companies do about it?

For example, some organizations consider different means of transportation besides planes, especially when the other location isn’t far. If you’re interested, you could search for sustainable vendors who are mindful of transportation and will offer you the best prices for the lowest polluting transportation options.

Corporate travel isn’t always straightforward

Business travel exposes managers and teams to several challenges. We’ve already addressed the unclear travel policies, which need to be compliant and well-developed. But that’s not all. Employees might be faced with delayed or canceled flights and reservations, in which case they might lose important meetings or get stuck in airports for hours or days.

When dealing with disruptions, the team behind booking must always be prepared for another re-booking. Still, a well-planned itinerary is much more important because it also includes solutions for unpredictable events.

Another problem is planning the budget without being too restrictive or generous. A software solution can help manage all costs and expenses from previous trips and provide a better forecast for the following travel. Planning in advance is advised to optimize costs.

Where do people travel the most for business?

While corporate traveling can mean going to a nearby town in the country, it usually involves flying to another country, where more developed companies can provide unique expertise in your industry. That’s why the following locations are famous for business trips:

• New York City;
• Las Vegas;
• Cape Town;
• Amsterdam;
• Sweden;

These countries also offer some of the best working opportunities for international workers, as their economies are flourishing and technology is among the latest.

Where’s your next business travel destination?

Corporate travel is an essential factor that drives exposure to international markets and profit opportunities. It helps brands unite by sharing expertise, as well as establishing long-term collaborations. Corporate travel implies someone well-prepared in the company will go to another city or country to attend meetings and create networking around the brand in order to take advantage of changes for innovation. Preparing for such a trip requires extensive booking and preparations and creating a safety policy to protect the employee.