Managing Business Travel Without a Budget

For procurement departments, managing business travel can be a challenge—especially when budgets are tight. It can become even more challenging when the organization's business travel program has no set budget at all, or if travelers themselves don't have a budget.

Nonetheless, there are ways to keep costs down and ensure travelers still get the most out of your travel program. Even if you must manage business travel manually, you don't have to break the bank.

Empower Travelers to Make Smart Choices

One of the procurement department's most important tasks is to empower travelers to make smart choices. This means giving them the information they need to pick the right travel options and avoid unnecessary expenses.

To do this, procurement leaders should provide clear guidelines on what is and isn't allowed under the travel policy. They should also educate travelers about the best ways to book travel, what to look for when choosing a hotel, and how to find the cheapest airfare.

Another way to accomplish this is to provide travelers with tools and resources to help them find approved accommodations, transport, dining options, and more. This can be accomplished through apps and interactive dashboards, or even through custom-built websites.

For example, in 2020, energy company Chevron initiated a preferred hotel sourcing strategy to enable its employees to choose from a variety of pre-approved hotels when traveling. The company also created a global car rental sourcing strategy and deployed an "expanded technology set of online and mobile tools to enhance the traveler experience," according to Business Travel News.

Technology Can Help Keep Costs Low

While procurement leaders can't always control traveler behavior, they can use technology to help keep costs low. By automating certain processes and using cost-effective tools like corporate cards, procurement departments can empower travelers to make smart decisions and keep costs under control.

Procurement departments can also use technology to help them track spending. By tracking expenses in real-time, procurement leaders can identify areas where they might be able to save money. Additionally, this data can help procurement teams create more accurate budget projections for the upcoming year.

Finally, procurement leaders should consider using a travel management company. A good TMC can help procurement teams save money on airfare, hotels, and other travel-related expenses.

Be Prepared for Auxiliary Travel Spend

When procurement leaders are unable to institute a travel budget, they often find themselves managing business travel without any real plan or strategy. In these cases, it's important for procurement professionals to take a step back and assess how much money is being spent on auxiliary items such as food, transportation, and lodging. This analysis can help procurement leaders understand where they can cut costs and better manage their travel programs.

Again, procurement leaders can use technology to help keep auxiliary and ancillary costs down. There are several apps and websites that offer discounts on things like airfare, hotels, and car rentals. Procurement professionals can also encourage travelers to book their trips well in advance, as this often leads to cheaper rates.

Additionally, procurement leaders should remind travelers to take advantage of loyalty programs offered by airlines and hotel chains.

All these measures can help procurement leaders manage extra travel costs, even without a budget. By being proactive and using technology to their advantage, travelers can save their organization money and ensure that business travelers don't have to sacrifice a positive and productive experience.

Getting a Handle on Ad Hoc Business Travel

Technology and sound strategy can help procurement departments manage business travel without a strict budget. By automating processes and tracking expenses in real-time, procurement teams can keep costs under control and create more accurate budget projections. Additionally, procurement leaders should consider using a travel management company to get the best deals on airfare and hotels.

To learn more about how you can better manage your business travel operation, don't miss the next ProcureCon Travel event. It's happening from June 13th to 14th at the Omni Rancho Las Palmas, Rancho Mirage, California.

Download the agenda today.