Whether it’s for an important project or business-sponsored vacation, planning for corporate travel budget can be very complex and will require full involvement from key stakeholders from your company. But when done right, a well-planned travel budget will also ensure a seamless and satisfying travel experience to all travelers of the company.
Preparing a travel budget means setting guidelines on the acceptable travel expenses your company is willing to shoulder, as well as the return that these “investments” will generate to your business in the long run. To ensure that you will fully maximise your travel budget and you’ll reach your corporate travel goals and objectives, we have listed down in this post several tips that’ll help you plan your corporate travel budget effectively.
1. Set clear travel policies.
If planning for corporate travel budget specifically for vacation incentives of your employees, your travel policy should specify:
a.) How employees must request trips
b.) What information they must provide to;
c.) the person approving the request.
Aside from these, a typical travel policy should also require the travelers to submit their expenses report upon their return. They should know prior the trip that their expenses should be based on the maximum allowable expenses for lodging, transportation, meals, tips, communication, and other expenses set by the management.
If you’re planning to include formal “bleisure” policies in your corporate travel program, then they should also be accounted for in the budget. Bleisure is a growing corporate travel trend that combines business and leisure while on a work assignment, such visiting tourist spots while the project hasn’t commenced formally yet.
Including this on your travel program can be very rewarding too, as reports say that “ 78% of staff travelers reported that their work assignments became more effective when incorporating leisure days into their itinerary.”
2. List possible trips for the year.
When planning a travel budget for vacation incentive program of your company, you need to evaluate how many trips you think your employees will take each year. Conduct a meeting with department heads and ask about their upcoming needs for the year, as well as the projected dates for each upcoming trip so you can make an estimate for airfare and hotel rates. Once you know the trips, sort them out according to which require an airfare, mileage reimbursement, lodging, meals, registration fees, and any materials shipping. After that, calculate the cost of each trip and total estimated cost of travel for the year.
3. Examine the value of the travel.
After you listed down all the possible trips for the year, review each and determine the value that they’ll bring to your company. The most obvious value that business trips can bring is sales. That is if by traveling on the destination will allow you to sell your product or service on the local market. A trip to a workshop or seminar, on the other hand, might improve your employees’ skills and knowledge, thus making them more productive at work.
Whatever the nature of the trip is, examining the value of each trip will allow you to rank them according to their importance to the business, allowing you to make a clear judgment on which trips to approve and which trips needs further assessment.
4. Collect the costs of all your previous trips.
As stated earlier, all travelers must submit a detailed expense report upon their return. Upon collecting all expense reports, store them in a database to see which expense exceed the allowable limit stated in the travel policy. Doing so will also allow which expense eats most of your budget, and which requires more budget allocation next year. By having a database about the cost of each trip, you can identify which trips paid off and which trips didn’t – thus giving you valuable insight on what type of travel your company should promote to its employees next year.
5. Monitor and control the budget.
Don’t forget that your employees are one of the most important assets of your company, so make sure to give them enough budget for their trip. Besides, you don’t want to sacrifice their comfort just because you think the trip will bring no immediate value to your company. One way to achieve a seamless corporate travel without risking your budget is by partnering with a chauffeured car services such as Hyryde. When traveling to an unfamiliar city, the chance of your employees getting lost, or worse, be involved in an accident – is much higher. You don’t want to place their safety and security at risk because you’re protecting your budget.
With Hyryde, you have the peace of mind that your employees are in safe hands since most of our drivers have undergone a strict background check and demonstrate exceptional professionalism. This way, your employees will be able to enjoy the trip, even allowing them to complete some of their assignments while on the road.
More importantly, professional chauffeur services offer an attractive, predictable pricing scheme, allowing you to make accurate transportation cost estimate prior the trip. Just contact Hyryde about corporate accounts if you travel frequently for work so we can give the best deals on pricing.
These are the steps that you should follow in order to create a travel budget for your company. To learn more on how Hyryde can help your business achieve a seamless corporate travel experience, just send an email to email@example.com.