When analyzing the costs related to business trips, associated with business travel, it is common to consider the costs of transport, hotels and business travel per diems. However, to see the big picture we should also take into account hidden, often non-obvious costs.
Business travel policy
Most companies have a business travel policy aimed at minimizing costs and ensuring adherence of the process to the adopted principles (the so-called compliance). Procedures vary depending on the company’s internal guidelines. They are not always transparent enough for employees traveling and making the expense claims.
Managing business trips is usually the responsibility of several company departments, and the tasks related to planning, purchasing and claiming the trip rest with the employee. This solution generates costs in the form of time spent on comparing offers and then purchasing tickets and accommodation. An employee often makes last-minute reservations because they see this task as an as an extra, not a core responsibility.
Direct travel costs
The cost of a business trips consists of several elements:
- transport
- accommodation
- food
- car rental
- additional costs – tickets for conferences, seminars, trainings
Accommodation, depending on the location and standard, may constitute up to 50% of the cost of business trips.
Hidden costs
Cost of late booking
A business trip planned well in advance allows you to take advantage of more attractive price offers than in the case of reservations made just before departure.
Exchange rate differences and currency conversion costs
In the case of trips abroad, the use of booking portals requires payment by card on site. The final amount of the purchase of the service will depend on the current exchange rate, which may differ from the rate at which the reservation was made, and may be increased by the cost of currency conversion in accordance with the bank’s list of commissions and fees. Both in the case of hotel accommodation and car rental, these fees can significantly increase the cos of business trips.
Time cost
It is important to remember that the employer also incurs costs related to the employee’s lost working time spent organizing the trip and travelling to the station, airport, and hotel.
How to standardize the Travel & Expense process and reduce the real costs of business trips?
With the complete travel and expense process in mind, we have created Mindento – an application for managing and optimising business travel and expenses.
Thanks to Mindento you will:
- systematize and simplify the process of managing business expenses
- reduce the costs of business trips
- reduce formalities
- maintain control over your budget
- ensure compliance
- make employees perceive the process as easy and pleasant
In our app you can choose the best travel offers. All prices are given and settled in your local currency. You avoid the costs of currency conversion. In the case of accommodation or car rental, you can save approximately 7-8% compared to paying by card on site.
