NEW YORK, November 13, 2017 (Newswire.com) - Business travel is an essential part of a business in today’s world of globalization. But costs of corporate travel continue to increase.
There are some simple ways to cut business travel expenses. Here are eight simple ways to lower your corporate travel expenses:
So even without cutting any business travel expenses, you can save up to 25 percent on your international corporate travel budget.
David Zulberg, CEO, Global VaTax
1. Credit card and online business bookings. Some credit cards offer car rental insurance advantages. You will need the paperwork printed at the car rental station. Credit card companies also have built-in corporate travel discounts. Many of the popular online booking systems have dedicated portals for business travel, offering up to 20% discounts on airline, hotel, and car rental prices. Remember to use their corporate booking systems, which are easily accessible online.
2. Add-on fees. Incremental fees, like seat upgrades, priority boarding, checked luggage fees and in-flight meals are helping airlines boost their revenues. Pay attention to these fees as they differ from airline to airline.
3. VAT Refund. The United States has a sales tax system but many other countries have a VAT system. Value Added Tax (VAT) is a consumption tax, which ranges between 8 – 25 percent, that is levied on many business travel expenses such as hotels, meals, conferences, trade shows, transport etc. The national tax systems of Europe, UK, Canada, Japan, South Korea and Australia allow for VAT tax recovery to most non-resident business entities worldwide. In most cases, corporate travelers are eligible for a VAT refund on their international business. So even without cutting any business travel expenses, you can save up to 25 percent on your international corporate travel budget. You will need a specialized firm to reclaim your corporate VAT costs such as Global VaTax. There should be no upfront fees so you don’t have to pay any consulting or per hour professional fees. Instead, a small percentage of your reclaim is kept as a commission for this service. Contact Global VaTax for your free VAT potential report.
4. Book timely. Sometimes you can't help last-minute business travel plans, but when you have time to schedule a trip in advance, it can result in significant savings. By booking at least a week before departure, businesses can save per airline ticket and hotel. Try to delay business travel in the high travel demand months which simply results in higher prices by airlines and hotels.
5. Alternatives. You pay for the convenience of flying into major airports. Consider the cost of flying into small- and mid-sized airports. Take into account travel time and cost from that airport to your lodging. Consider other means of travel, such as trains. Often less expensive, you are also able to get work done more easily while on your way.
6. Amenities. Look for hotels that offer free breakfast, gym facilities, snacks and appetizers, refrigerators and coffee makers in the rooms. Require employees to use these hotels and amenities when they are available.
7. Policies. Document policies and guidelines for employee travel and expenses. Your policy should outline spending limits, vendors, and reimbursement procedures, and which expenses will not be reimbursed.
8. Vendor Discounts. Airlines, hotels, car rental, even restaurants are happy to extend corporate discounts with volume bookings, which ensure leverage in negotiating rates.
Source: Global VaTax