The right business travel agency can help you get the most competitive corporate travel solutions
25th February 2014
It’s true. The old adage ‘size matters’ does make a big difference when it comes to business travel procurement. As a business travel agency we know from experience that large corporations have the advantage thanks to a buying power based on employee numbers and the subsequent frequency of business travel activities.
It’s only fair, since companies that provide business travel agency commodities, such a flights, hotel rooms and hire cars, need to keep their operations ticking over, and a large corporation provides them with guaranteed business opportunities all year round. In an ever competitive market place, being able to anticipate turnover can make a huge difference to the purchasing power of business travel agencies and their corporate customers. So if you’re not a large corporation, what can a small or medium enterprise do to get a better business travel deal?
The answer is simple. Employ a business travel agency with access to the very same deals and savings. Even if you’re annual business travel spend can’t match the corporations, the cost difference between sourcing your business travel yourself and what a business travel agency can deliver can be vast.
The recent Concur Expense IQ report which focusses on 2012 business travel spend in the US makes for interesting reading, and compares the differences between SME and large company business travel pricing. The percentages involved are significant, and in an economic climate still trying to recover to pre-2008 banking crisis levels, every penny counts.
Take the average cost of an airfare. The report determined that for large companies the average flight cost filed came in at $732.59 (£440.15, €533.26), while the equivalent cost for SMEs was $832.55 (£500.21, €606.02). That’s a difference of just under $100.00 (£60.08, €72.80), equating to a 13.6% price differential.
Hotel and accommodation cost differences were even greater. Whereas large businesses filed an average expense of $608.62 (£366.02, €443.05), the SME cost average filed came in at $739.69 (£444.85, €538.47), a significant difference of 21%.
And it gets worse for SMEs. Car rental costs show a differential of 56.7%, while entertainment demonstrated a whopping 75.1% difference. Is it any wonder SMEs struggle to make any inroads on their larger competitors? Can SMEs redress the balance and achieve a more cost effective business travel programme? Yes, with the right approach to business travel procurement.
Business travel companies, such as leading independent UK business travel agency Flightline Travel Management Ltd have the experience, industry know-how and resources network to substantially reduce the cost of corporate travel expense, providing SMEs with substantial cost savings, and at the same time offering a greater array of services and solutions typically the domain of larger businesses.
Speak to Flightline Travel Management Ltd, the leading UK independent business travel agency
To learn more contact Flightline Travel on 0844 332 0174 to see how our business travel expertise can make a difference to the efficiency of your business travel programme. Alternatively, email us or complete our online contact form.