How to Make Small Business Travel Efficient and Affordable

As small businesses grow, so do the travel expenses, which can quickly become one of the biggest budget busters. Whether it’s meeting clients, scouting new markets, or recruiting top talent, travel is crucial — but it doesn’t have to drain the company coffers.

What’s the secret to affordable and efficient business travel? A smart corporate travel program that keeps costs in check while maximizing productivity.

Dive into these five tips for streamlining small business travel and keeping it budget-friendly, with plenty of resources to help along the way.

1. Establish a Clear Travel Policy

A well-structured corporate travel policy sets the foundation for managing trips effectively. It outlines everything from preferred suppliers to expense limits, which help employees follow consistent procedures. A formal policy encourages cost-effective decisions while ensuring transparency and accountability.

Download a Free Travel Policy Template

2. Leverage Technology for Efficiency

The right technology can significantly reduce the workload of managing travel. By automating tedious tasks and providing real-time insights, these tools help businesses cut down on costs, reduce errors, and improve the overall travel experience:

• Expense Management Tools: Automate the tracking and reporting of travel expenses to save time and prevent errors.
• Online Booking Platforms: Modern booking platforms provide access to the best travel inventory and let employees book everything from flights to hotels within minutes.
• Travel Management Software: This software centralizes all aspects of travel planning and management, including policy compliance, reporting, and support. It can improve control over your travel program, so your team stays on budget without sacrificing quality.

When all of these capabilities are combined into an all-in-one solution, businesses benefit from streamlined workflows, fewer system silos, and a unified view of travel and expense data — ultimately saving time and money while reducing the complexity of managing travel.

Checklist: How to Select a Corporate Travel Company

3. Form Strategic Partnerships

Growing small businesses don’t typically generate enough travel volume to warrant corporate discounts. But unlocking these special rates from airlines, hotels, and car rental companies doesn’t have to be limited to large enterprises — if you know where to look.

Small businesses can take advantage of special rates by partnering with travel management platforms. For example, Navan has negotiated up to 15% off the best available rates with thousands of global hotels.

Group bookings for conferences or team events can help reduce costs and provide added perks. These benefits can enhance the travel experience for your team while keeping costs in check — proving that even with limited travel volume, small businesses can access big business benefits.

All things travel for small businesses

Need a guide to understanding all travel management options for your small business? Here are some useful links to help you enhance your travel program.

4. Reward Cost-Saving Behavior

Incentivize employees to choose budget-friendly travel options by offering rewards for those who stay under budget. This will make cost-conscious decisions a win-win for both the company and the traveler.

Creating a cost-conscious culture in business travel starts with encouraging employees to make smart, budget-friendly decisions. When cost-saving becomes part of the company’s DNA, it benefits the business and the traveler.

Here are practices you can encourage business travelers to follow to make travel more affordable.

• Encourage Public Transportation: Advocate for using public transportation or affordable ride-sharing options instead of private taxis or rentals to save on local travel.
• Recommend Flexible Travel: Recommend that employees avoid peak travel days for cheaper options. Mid-week flights can often be more affordable than Monday or Friday departures.
• Leverage Dynamic Pricing: Businesses can gain more flexibility and further control travel spending by using a booking solution that supports dynamic pricing. The dynamic pricing model lets businesses access more attractive fares and travel packages as it accounts for fluctuations based on seasonality, demand, and time of booking.
• Book in Advance: Encourage employees to plan and book their trips as early as possible. Flights and hotels are typically cheaper when booked in advance, reducing the likelihood of last-minute price hikes.

In addition to these practices, companies can use reward systems to incentivize employees who choose budget-friendly travel options. Navan Rewards allows employees to earn personal travel rewards, making cost-conscious decisions that are a win-win for both the company and the traveler.

5. Use Real-Time Data for Cost Management

Small businesses often struggle with managing travel expenses, leading to budget overruns and unexpected costs. Without visibility into spending patterns, it’s challenging to identify areas for savings or guarantee compliance with travel policies.

Using real-time data to monitor travel expenses is a game-changer for small businesses. Travel management platforms provide real-time insights into spending patterns, helping companies to stay on top of their budgets. The data can be used to identify cost-saving opportunities, track compliance with travel policies, and help ensure that travel expenses remain within budget.

Small businesses can save time and money by automating expense reporting, leveraging technology for real-time data, and enforcing clear travel policies.

Integrating a platform like Navan can simplify small business travel management, providing one-stop booking, expenses, and compliance solutions.

Ready to take the travel management of your small business to the next level? Discover how Navan can take your business to new heights.