How to Cut Company Travel Costs with Navan Rewards
Libby Zay
•27 Nov 2023•
As companies look for ways to control costs, travel budgets are now under the microscope. In the past, the only way to generate travel program savings was to cut travel — but slashing travel may be a shortsighted option that hinders long-term company growth.
What if there was a way to incentivize traveling employees to make price-conscious decisions?
Enter Navan Rewards, one of the ways Navan drives travel program success. Employees can earn rewards when they book eligible hotels that save their company money — and Navan fully funds these rewards.
Keep reading to understand how Navan Rewards helps companies cut travel costs without cutting travel.
Big Savings with Navan Rewards
Asana’s average nightly hotel rate is 23% less for people who book with Navan Rewards incentives.
The Problem With Static Policy Caps
Traditionally, companies put a static cap on hotel rates. However, hotel rates fluctuate constantly due to supply and demand.
As a result, when rates are competitive, the cap might be too restrictive. And when rates are reasonable or low, a blanket maximum encourages travelers to choose more expensive options.
Employees end up spending more company money because they see the cap as a goal instead of a limit. Who wouldn’t want to get the best room possible? As long as it’s in policy, why not?
What Travel Managers Are Saying
“Navan [Rewards] has driven our Average Daily Rate to 40% below our policy cap. This means that our employees are voluntarily booking more economical options, whereas before they were always maxing out their allowance.”
— Desene Sterling, Accounting Manager, Lime
The Solution: Employee Incentives
Navan flipped the switch on traditional static policy caps by focusing on what a hotel should reasonably cost.
To do that, the solution uses a sophisticated algorithm to calculate the fair market price based on location, date, and demand at the time of the search.
When travelers book below that fair market price, they are rewarded with a percentage of the savings value and can redeem their portion of the savings for personal travel credits on Navan.
Everyone loves rewards. And all things being equal, why would an employee not choose the hotel that gives them a kickback?
The employee gets an incentive, and the company saves money. It’s a win-win for everyone!
What Employees Are Saying
“The fact that I can earn travel rewards points is a game-changer. I’m currently ranked #2 at my company in terms of rewards points earned, and I have enough to travel round-trip to Europe. Navan is paying for my vacation.”
— Matthew D., employee at a mid-market company
Additional Business Benefits
Beyond reduced hotel spend, businesses that use Navan Rewards have benefited from:
- Greater employee satisfaction
- Greater platform adoption
- Visibility into spend and traveler whereabouts
As travel spend goes down, companies have seen their platform adoption go up. Employees are excited to book on Navan, and admins gain visibility into spend, save time, and earn traveler trust.
Ready to change employee spend behavior by rewarding travelers for choices that save the company money? Get started with Navan in as little as five minutes.