Cost of business travel remains challenging for many companies
Tuesday, December 18, 2012
The lingering economic uncertainty observed around the world has meant executives must be discerning when choosing service providers in the business travel sector. Increasing numbers of corporate travelers are opting to stay in serviced apartments instead of corporate suites in chain hotels, but budget-conscious executives must remain vigilant to avoid overspending.
Small changes, big difference
The Financial Times recently reported that frequent business travelers should be careful when on the road. For busy executives, it can be all-too-easy to overspend unnecessarily. While choosing to stay in corporate housing is an excellent way for business travelers to reduce costs without sacrificing quality, other small changes can have a cumulative effect.
Tom Hall, travel editor of Lonely Planet, provided some tips for frequent business travelers on how to save money. Choosing rail travel over taxis can save executives significant sums of money, and can often be more reliable than risking getting stuck in traffic. Remaining vigilant when it comes to baggage allowances is another suggestion Hall offered to executives, as airlines frequently charge substantial surcharges for additional luggage.
Communication costs were also an area in which business travelers can make savings while on the road. While smartphones and tablet computers may make executives more productive when traveling, roaming charges for data usage can add up quickly. As such, Hall recommended that frequent business travelers invest in a local SIM card at their destination to avoid excessive roaming charges.
The need for business travelers to save money has never been more urgent than it is today. With economists still concerned about financial growth and corporate travel costs rising, executives must make informed decisions about where to stay and how to travel.
Business Travel News reports that, according to a recent study by PKF Hospitality Research, the average daily rate for many hotels across the U.S. will increase at a compound rate of 5.4 percent through 2016. While the looming threat of the fiscal cliff could have serious implications for the hotel industry, it seems likely that executives will be forced to pay ever-higher rates at chain properties.
For this reason, many business travelers are choosing to stay in corporate apartments as a viable alternative to costly chain hotels. These properties offer executives the comforts of home at excellent rates, making them a tempting option for frugal business travel management professionals.