Cost saving strategies in corporate travel

Whether you’re a small business or large enterprise, saving money across your travel program has never been more achievable. CTM’s General Manager (Queensland) Craig Southee outlines some strategies you can implement immediately to effect substantial savings.

The most common question asked of  CTM by our customers is “How do we make further cost reductions across our travel program?” Return on investment is one of CTM’s three founding principles, so this is always a topic we are keen to discuss.

Small Business

Small businesses often face challenges when trying to reduce their travel costs, due to limited buying power and time-poor employees. But new supplier initiatives combined with CTM’s custom-made small business travel solutions are giving small businesses greater budget control and more choice than ever before.

  • Airlines: The airline industry has now structured its SME loyalty programs to give more back to small businesses. This is through either percentage discounts across a wider selection of fare types or centralised points earnings systems whereby the company benefits from their individual travellers’ mileage. This “double dipping” concept is something SMEs have been asking for for over a decade, and now they have it. Talk to us about optimising the right program for your business and take advantage of the savings and value-adds to be enjoyed.
  • Hotels: Now it’s time for businesses to optimise their hotel spend. Small businesses now have the luxury of comparing a range of hotel rates via an online booking tool to determine the best possible rates for their needs. Whether that’s the best rate of the day or your own negotiated corporate deals, its easy to search and compare hundreds of options in one platform. A simple trick to get the most out of your bookings is to filter your options based on a selected range of criteria, such as price, location or star rating.
  • Mobility: Small businesses rarely sit still. The CTM Mobile app drives efficiencies to small businesses by putting all of your travel options in the palm of your hand, 24/7. Not only can you now access more choice and the best travel rates, you can also enjoy the efficiency of booking travel whenever and wherever you need it.

Large Enterprise

Those in the medium to large organisation category will find, by aligning themselves to one supplier, they can be rewarded with substantive discounts stemming from the competition between suppliers. CTM’s strategic account management teams can assess your travel trends and expenditure to determine the benefits of a preferred hotel or airline program (where loyalty is rewarded) against a ‘best rate of the day’ agreement.

  • Airlines: Good procurement practices are only one element of how your travel program should be driving value. Technology is advancing rapidly and CTM provides many tools that can deliver enormous savings beyond your airline negotiations. Fare Forecaster is one of these technologies. Our 21-day advance outlook allows you to view the most cost-effective day of travel and plan your meetings around this.

For example, you may wish to fly from Sydney to Melbourne on Wednesday, however travelling on Thursday would deliver an $80 reduction on the ticket. Fare Forecaster visualises this information at the initial search, saving time and effort in multiple searches and influencing better booking behaviour. Many organisations can drive upwards of 10% average ticket price savings based on this one tool alone.

  • Hotels: In the hotel space, Brisbane and Perth are currently destinations with an oversupply of stock. By partnering with a preferred supplier, showing solid compliance to your travel program and being realistic with your annual volumes, you’ll be well positioned to receive the best market rates available to you.

Return on investment has been part of CTM’s value proposition since our foundation over 24 years ago. Our account management teams focus heavily on delivering value in the form of savings to your current travel program. The corporate travel industry is definitely a buyer’s market. Take the time to properly assess how the travel category can contribute to your overall business objectives. Our expertise will assist you in developing the right strategies, which will deliver optimum savings to your bottom line.

Contact CTM today for an obligation-free review of your travel program: