Take strategic measures to save on travel costs.

When it comes to company expenses, travel is one of the most controllable: it ranks third after payroll and automation. It's also one of the easiest to overlook when cutting costs. Many companies believe they have exhausted their money-saving options once they've selected the lowest airfares, the cheapest hotels and the most economical rental cars.

In large firms, travel costs run from three percent to five percent of sales. In small companies, they tend to be even higher. That's due in part to the fact that small businesses lack the visibility they need to compete with larger companies. In order to acquire new customers and make themselves visible, small company reps must travel. Big companies, on the other hand, simply turn to their branch offices or video teleconferencing centers to bring in the new business. It is necessary for the growth and livelihood of small businesses to make travel as efficient and as cost-effective as possible.

Create A Travel Policy

One way to get company travel headed in the right direction is to create a travel policy for all employees who travel. Include reimbursement rules, guidelines for reservations, instructions for making meal arrangements, and so on. Educate your employees on value shopping, expense reporting, and any other particulars which might help them streamline their travel time and costs.

Once your policy is written and put into effect, take it seriously. Make the standards it spells out difficult to amend (put those items that may change on a regular basis, such as discount arrangements and preferred providers, in an easily updatable appendix document). Place a copy of the policy in every ticket envelope, and make sure your travel agency is familiar with it.

Save Money With Services

Once you've set the rules for employee travel, you can save even more by attempting to negotiate with suppliers. For instance, if you'll be using one car rental or hotel chain exclusively each time you are in a certain area, let the supplier know.

Guaranteed, regular business from your company may merit discounts and other perks. Keep in mind that larger chains and companies like to offer their discounts to bigger firms--you may be more successful with individual hotels and car rental offices..

Research travel services in frequently traveled cities to cut costs further. Airport shuttles and taxis may vary drastically in price. Hotels located close to the major areas where you'll be doing business can save you valuable time. Also check parking costs and locate free lots.

If you or your business subscribes to an electronic service, you can make travel arrangements electronically and save up to 50 percent on travel agency commissions. Airline ticket purchases, hotel reservations, and car rentals can all be accessed and arranged electronically.

Charge card use, in addition to easy-to-follow expense forms, can eliminate or reduce your cashier function and cut your administrative costs. Employees using charge cards will be less inclined to overspend if they need to withdraw cash from automatic teller machines, and they can be reimbursed accurately, thanks to itemized billing statements.

Travel expenses can become more manageable if you take these simple actions toward organizing travel activity and curbing spending.

Roy Montgomery is a freelance writer.