If you’re about to hit the road for a business trip, it’s important to manage your business travel expenses. Reducing your expenses as much as possible supports profitability—after all, if a business trip costs your company more than it benefits it, the trip overall is pointless.
Travel can be costly, so we’ve put together some tips for how to save money on business travel. Even small changes to your strategy can save you money, making your business trip even more worthwhile. For example, choosing to rent a car with SIXT business instead of flying can save you a lot on transportation costs.
In this article, we break down:
Understanding business travel costs
In order to save on corporate travel, it’s essential to understand business travel trends and what you’re actually spending your money on.
How much do companies spend on business travel?
You may wonder how much companies spend on business travel each year. One study from the Global Business Travel Association (GBTA) found that in 2024, $1.48 trillion was spent on business travel, and this number is only expected to increase.
Of course, the amount spent annually will vary by company size and industry. According to Booking.com for Business, small companies spend an average of $1783 per business trip, and medium-sized companies spend $1549. These values include travel, accommodations, dining, and other non-leisure expenses.
Here’s a breakdown of the top culprits for business travel expenses according to the GBTA:
- Companies typically spend the most on accommodations (a global total of over $500 billion)
- Travel and transportation are the next biggest expense (a global total of over $280 billion for air travel alone, and another $160 billion for ground transportation)
- Dining follows with a global total of over $240 billion
- Other travel-related expenses come in at a global total of over $140 billion
These may be global numbers, but you can scale down the general picture and it will look similar for your company. It’s true that accommodations and transportation are the two most expensive parts of a business trip, no matter the company size or the industry you work in.
Dining and other non-leisure expenses, on the other hand, are something you have more control over. For example, your company may give you a per diem allowance that you can spend on dining or other activities. But be sure to keep incidental costs in mind—things like tips and parking fees can add up.
How to create a business travel budget
The first step for reducing business travel expenses is to create a realistic budget. This is part of overall business travel management, so your company may already have one in place. Or, they may ask for your input. Either way, when creating the budget, there are a few things to keep in mind:
- Look at past data: This is perhaps your most valuable resource when it comes to creating a budget. Look at what your company has spent on business travel in the past, and try to realistically match it based on what your company can afford.
- Adjust for season: Travel during the summer or around holidays is typically more expensive than during off-peak seasons. Adjust your travel and budget accordingly.
- Consider tax deductions: Many business travel expenses, such as accommodations, travel, dining, laundry, and more are tax-deductible.
- List ways to cut costs: Booking flexible fares, booking ahead of time, and taking advantage of loyalty programs are good strategies when you’re wondering how to reduce business travel expenses.
- Familiarize yourself with company policy: Learn the procedures for expense tracking and reporting, protocols for emergencies or cancellations, and anything else that may affect business travel costs.
Top tips on how to save money on business travel
Now that you’ve got a budget in place, it’s time to look at how to cut business travel costs. Take advantage of these simple strategies on how to reduce business travel expenses:
- 1. Book early: Generally, the closer you get to your departure date, the more the prices for travel and accommodations increase. So, reserve accommodation and travel as soon as possible. For example, you can easily book a rental car for business travel with the SIXT app.
- 2. Choose a rental car: Daily rates for rental cars from SIXT often add up to be cheaper than airfare, train tickets, or constant taxi rides. In addition, you’ll have more flexibility in your schedule, making your business trip even more efficient. If you choose a hybrid or electric vehicle, you also support sustainable business travel.
- 3. Take advantage of corporate discounts: Many companies provide discounts for business travelers. For example, SIXT business offers up to 15% off rental cars for corporate travel. We also have a rewards program where you can earn points for future savings.
- 4. Check in early: Time is money, so if you can check in early for your flight, rental car, or even accommodations, do it. With SIXT business, you can check in online before arriving to pick up your car, allowing you to skip the line.
- 5. Get a business travel credit card: Business travel credit cards can help you earn points and rewards to use on hotels, flights, and more.
- 6. Track expenses in real time: Keep all your receipts and use a business travel app to track expenses while you’re on the road. This will make reporting expenses when you get back much easier, plus you’ll see how much you’re spending in real time.
- 7. Stay productive on the road: Prioritize your comfort and health so you can complete your work efficiently on the road. Consider these other business travel tips to make the most of your trip.
How SMEs can save on business travel
Small- and medium-sized businesses (SME) typically have less wiggle room in their budgets, so they adhere to stricter budgets and put in place more money-saving tactics. Here are some more tips on how to save money on business travel as an SME:
Be flexible
Being flexible on dates, transportation methods, and other aspects of the trip is a great way to cut costs. For example, opt for a flexible car rental plan with SIXT business. You can save up to 15% on your car rental and choose from a wide range of vehicles, whether you want a compact car for city driving or a premium car for client-facing trips. This also adds flexibility to your itinerary, so you can rearrange your schedule during the trip without worrying about getting a ride. This also eliminates luggage fees, as you can bring as many bags as can fit in your car.
Leverage bleisure travel
Bleisure travel combines business travel with leisure, often with employees extending their time in a destination past what’s needed for business. With this rise in remote work and combining business with pleasure, you can take advantage of rewards points earned at hotels for these extra days. Remember that companies have a duty of care to their employees during the business portion of the trip, but as soon as that ends, employees will assume responsibility for their expenses.
Give per diem allowances
A per diem is a daily allowance for employees to spend on meals and other necessary expenses. With a per diem, you have much more control over how much is spent and it makes reporting expenses much easier, leaving less room for confusion. With a per diem, employees know exactly how much they can spend per day and anything over this limit will be taken care of by them.
How to calculate business travel expenses
Calculating business travel expenses is perhaps one of the most difficult parts of a business trip. If you were diligent about recordkeeping while you were away, calculating your expenses won’t be terribly time-consuming—all you have to do is add everything up and report it to your employer. Same goes for if you were using an app to track expenses: Just export a full report and you’re done.
However, there are some things that will need to be calculated no matter what. For example, if you opted to rent a car with SIXT business, you may need to calculate your mileage for tax deduction purposes. Whether you decide to use the standard mileage rate method or go with your actual expenses, you’ll need to keep track of the beginning and ending mileage on your rental car.
How to save money on business travel: The bottom line
There are plenty of tools and strategies to use when it comes to how to optimize business travel expenses. The value of planning ahead and booking early, diligent recordkeeping, loyalty and rewards programs, and flexibility can’t be underestimated.
Choosing the right mode of transport is also essential when it comes to saving money on business travel. With airfare being expensive and public transport being inflexible, renting a car with SIXT is a more flexible option. You can also save up to 15% on corporate car rentals as a registered business customer. Whether you’re looking to pick up a car in the city center and head off on your trip or pick it up at the airport when you land, our wide network has got you covered.
How to save money on business travel: FAQs
Booking ahead, being flexible, choosing the right mode of transportation, and using an all-in-one expense tracking app are the best ways to save money on business travel.
Optimizing your time for productivity by prioritizing your health and comfort is a great way to take advantage of business travel. By efficiently completing your goals during your business trip, you can add leisure days for personal exploration, a growing trend called bleisure travel. Using SIXT rental cars for this extension is both cost-effective and flexible.
Only if you are traveling for work can you write off your expenses. On a business trip, the cost of accommodation, transportation, meals, and other necessary expenses are tax deductible, but we always recommend speaking to a tax professional about the specifics of your situation.
Around Business Travel
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- What is Business Travel
- Business Travel Management
- Save Money on Business Travel
- Sustainable Business Travel
- Bleisure
- Duty of Care
- Travel Expenses
- Business Travel Trends
- Tips on Business Travel
- Best Cities for Business Travelers
- Best Car Rental for Business Travel
- Best apps for business travel
- How to calculate business mileage
- Small Business Tax Deduction