5 Items to Revisit in Your Employee Travel Budgeting

5 min read
Updated: May 18, 2022

When it comes to business travel, expenses can add up quickly. If you’re not careful, you can easily blow your budget and end up with a hefty bill.

In this article, we will discuss five items that you should revisit in your employee travel budgeting in order to save money. By following these tips, you can reduce your costs without sacrificing quality or convenience.

1.   Compare travel costs before booking

Travel costs can quickly add up, especially if you’re booking for a large group. That’s why it’s important for employers to compare travel costs before booking.

By taking the time to compare prices, employers can save money on their employee travel budget. There are a number of ways to compare travel costs. You can use online tools like Google Flights or Kayak, or you can call different airlines and travel agents to get quotes.

Comparing travel costs takes a bit of effort, but it’s worth it when you can save your company money. So next time you’re planning a business trip, make sure to compare travel costs before booking. You may be surprised at how much you can save.

2.   Consider alternative lodging options

If you’re an employer, you’re probably always looking for ways to trim travel costs. One way to do this is to re-evaluate the lodging options that are available for employees. While traditional hotels may offer a comfortable place to stay, they can also be quite expensive.

There are now a number of alternative lodging options that offer comparable accommodations at a fraction of the cost. For example, many employers are now opting for extended stay hotels, which offer weekly rates that can save significant amounts of money.

In addition, there is a growing number of vacation rental sites that offer short-term rentals at much lower prices than traditional hotels. By considering these and other alternative lodging options, employers can save substantial amounts of money on their employee travel budget.

3.   Fly coach instead of business or first class

In today’s business world, employers often feel pressure to provide their employees with the best possible travel experience. However, this can come at a significant cost.

Business and first-class tickets are often significantly more expensive than coach seats, and the difference can add up quickly for companies that frequently travel. In addition, coach seats are generally less comfortable than business or first-class seats, and flights are often overlooked, making it difficult to upgrade employees at the last minute.

For these reasons, companies should consider flying coaches instead of business or first class in order to save money on their employee travel budget. While employees may not be thrilled with the idea of flying coaches, it is important to remember that they are being compensated for their time and effort, not their comfort.

In the end, the flying coach is a more practical and economical option for employers, and it can help to stretch the travel budget further.

4.   Consider driving instead of flying

Another way many businesses are cutting travel costs is by opting to drive instead of fly. In many cases, flying is not the most cost-effective option for business travel.

Driving can often be a more economical choice, especially for shorter trips. Gas prices may be volatile, but they are typically lower than the cost of airfare. In addition, many businesses already have cars and vans that can be used for business travel. And for companies who do not own vehicles, there are plenty of rental options available.

To learn more about how you can cut travel costs by driving (despite the rising cost of fuel), visit Hotel Engine. So before booking your next business trip, consider the cost of driving versus flying. You may be surprised to find that it’s cheaper to hit the road than to take to the skies.

5.   Consider using per diem

Many employers who provide their employees with travel benefits offer an accountable plan. Under an accountable plan, employees are reimbursed for their travel expenses and are required to submit receipts to the employer in order to be reimbursed.

However, this reimbursement process can be both time-consuming and expensive for employers. An alternative option for employers is to offer a per diem instead of an accountable plan.

A per diem is a daily allowance that covers the cost of meals and lodging while traveling. This allowance is typically based on the location of the travel and the number of days traveled. Per diems are a simpler and more cost-effective way for employers to provide travel benefits to their employees.

Furthermore, per diems are not considered taxable income for employees, which can provide significant tax savings for both the employer and the employee. For these reasons, offering a per diem instead of an accountable plan can be a wise financial decision for employers.


Traveling for business can be a costly endeavor. However, there are ways to cut costs and save money on your employee travel budget. By considering alternative lodging options, flying coach instead of business or first class, driving instead of flying, and offering a per diem instead of an accountable plan, employers can save significant amounts of money on their employee travel budget.


Sophia Rodreguaze


Sophia is the contributing editor at noeticforce.com. She writes about anything and everything related to technology.

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