The vast majority of businesses in the UK are owner-managed small to medium sized enterprises (SMEs) with tight budgets to control. For many companies, travel expenditure can be the second most expensive overhead to bear after salaries. Despite this, recent research commissioned by Hotel Reservation Service (HRS) shows that one in three SMEs has either never reviewed the company travel policy or hasn’t done so for over five years. This is particularly shocking given the high travel fees that companies are being charged by agents for very little service in return. The HRS research found that two thirds of SMEs never receive advice on the suitability of hotels, best room rates or best flight routings from their agents. In addition, 75% of SME’s never receive advice on car hire. These are shocking statistics which show that SME’s must invest more time in searching out the best travel deals available – but where to start?

Shop Around

Booking via a business travel agent
Don’t blindly accept your agent’s first quote - it may not be the cheapest. Most business travel agents and travel management companies (TMC) have specially negotiated commission levels or other financial incentives with particular suppliers so will always push these first. Be sure to ask for a selection of prices from different hotel chains, airlines and so on. In addition, you’ll generally be charged a booking fee or management fee by the agent. HRS research found that on average companies were being charged £22.50 per booking which is a hefty sum on top of the price of the hotel room, flight, train ticket etc so watch out for those hidden costs.

Booking via a specialist
Many specialist agents, such as consolidators (flight specialist), or online hotel specialists, such as HRS, negotiate very competitive rates from suppliers which they pass on to the end user. Often they are the cheapest option, even cheaper than booking direct. These specialists are particularly cost effective for long haul journeys and for travel which requires a two or three night stay.

Booking Direct
Don’t just check the budget hotel chain websites or the low cost airlines’ sites. They aren’t always the cheapest, particularly if you need to travel immediately. They can be cheap if you book months in advance but for most business travellers it’s rare to have the luxury of planning meetings that far ahead. Additionally, often the budget hotel chains aren’t in the most convenient locations meaning that car hire may have to be factored into the equation. Make sure you check the hotel’s location and facilities as well as its price.

Booking via a general travel website
Be careful when booking via general travel sites. These sites may not always be as competitively priced as specialist sites or agencies. Specialist sites often have specially negotiated rates which are unavailable to ‘tourist’ or ‘leisure’ sites.

Consider using independent hotels

If much of your business travel is within the UK and Europe then you should consider using independent hotels which account for 70% of the market and are frequently competitively priced, offer a high standard of service and are often conveniently located. Most travel agents won’t offer you the option of booking with independents as these hotels are generally not linked in to the expensive booking systems that agents use and can’t afford to pay agents high commissions. By using specialist agencies which offer a much broader choice of hotels, including many independents, you can get an informed overview of what accommodation is available in the area to which you are travelling.

Avoid Cancellation and Rescheduling Fees

Frequently the cheapest rates can turn out to be a false economy, particularly if you need flexibility. If you think there is a chance of your meeting being rescheduled then book a hotel that isn’t going to charge you an expensive cancellation or rescheduling fee . Some hotels charge as much as 50% or more of the cost of the room if you cancel or change your booking within 24 hours of the date booked. By using specialist agencies you can avoid these fees. For example, if a hotel is reserved through HRS, free cancellations are accepted up to 6.00pm on the evening the room has been booked for.

Also try to avoid hotels, sites and agents that insist on pre-payment in full. These are generally aimed at leisure travellers and once you’ve paid the fee, you’ll struggle to get your money back if you need to reschedule and often will be charged administrative costs.

Remember, a little time spent researching your trip can pay dividends! Happy hunting!

For more information on how HRS can make the most of your travel budget, please visit www.hrs.com/corporate [0]