Features

21 ways to cut travel costs

26 Feb 2009 by Alex McWhirter

As sterling slumps and firms slash their travel spending, Alex McWhirter provides some top tips for making your travel budget go further.

1. Renegotiate your TMC deal

Ask yourself whether you really need to pay your travel management company anything from £40 to £60 in service charges for a simple booking. See if you can cut fees by doing more self-booking online, while keeping your travel management company in the loop. If you book lots of repeat business for simple point-to-point trips, consider setting up an online booking engine for further reductions.

2. Book flights ahead and save up to 65 per cent

Until recently, airline seat sales restricted you to flying in the back of the plane or at odd times of the year. Nowadays, the big airlines are so keen to fill their planes that sales are offered continually. Deals are offered in both premium and economy classes and on key business routes.

3. Upgrade to a hotel’s executive floor

Used wisely, an executive floor can offer better value than regular accommodation. You pay more but the extras can easily outweigh the additional cost – they are likely to include free breakfast, meals, snacks, drinks and internet access. There’s also faster and more personalised check-in plus the option of hosting small meetings in the lounge.

4. Schedule meetings during off-peak times

Delaying a domestic meeting by a couple of hours could enable attendees to benefit from cheaper air and rail tickets. Holding a meeting overseas at the weekend might not be popular with your partner but you would end up paying a fraction of the normal price.

5. Opt for airport-downtown rail services

Speedy, efficient and inexpensive airport-downtown rail links can be found in cities such as London (to and from all five airports), Amsterdam, Copenhagen, Geneva, Oslo, Paris (Charles de Gaulle), Stockholm, Zurich and at most main airports in Germany. In Asia, there is Hong Kong, Kuala Lumpur and Tokyo Narita.

6. Fly indirect

In the case of London Heathrow, the likes of Air France, Emirates, KLM and Lufthansa will easily undercut direct carriers such as British Airways and Virgin Atlantic, both in their premium and economy cabins. Indirect flight routings take longer and there’s the inconvenience of having to change planes, but you will get business class comfort with Air France to Singapore for the same price as premium economy with BA.

7. Consider budget carriers

Lower-cost carriers such as Easyjet routinely charge less than their traditional counterparts, particularly when booking within three days of departure. Critics claim these savings are outweighed by the fact that these carriers use further-out airports rather than central ones. But this depends on where you live and work – if you’re based in Bedford, for example, it may be far easier to fly from Luton than Heathrow or City.

8. Reduce your car rental fees

The car rental “day” runs in blocks of 24 hours. Return the car just within the 24-hour limit to save a day’s hire and other fees. Bear in mind too that reputable firms allow a little extra time should you be delayed in getting to the rental counter. Avis UK, for example, tells us that it would grant 59 minutes’ grace to tardy customers.

9. Book rail travel ahead to qualify for advance tickets

These can be booked on a one-way basis up until 6pm on the day before travel. You will find the best value when booking first class. Advance ticket availability varies from operator to operator and from route to route, but can offer up to 75 per cent savings. Booked five days ahead, a Virgin Trains London-Manchester first class advance ticket costs £148 return when taking the 8am train out and 5.55pm back. The normal first class fare would be £387.

10. Play the currency markets

Currency values provide endless opportunities to exploit a system where tickets bought in one country can cost much less than those bought in another. A year ago, Britons were benefiting from cheaper premium class rates when departing long-haul mainland European cities such as Amsterdam, Frankfurt and Zurich. Following sterling’s decline, the spotlight has switched to the UK. Readers in mainland Europe will now find that London has some of Europe’s cheapest long-distance premium fares, provided you buy and fly from a UK airport.

11. Investigate airport hotel parking packages

If you are driving to the airport and need to stay overnight, then airport hotels may be the answer to your parking needs. Almost all UK airport hotels will let guests park their cars free of charge or for a reduction on standard rates. Airport hotels overseas may also offer a similar deal. If staying away for a week or more, the savings you make could cover the hotel bill. Another option is to book your parking online in advance. Most UK airports offer big savings when you do this.

12. Downgrade from business to premium economy class

Several carriers, including BA, have a premium economy cabin and the latest products offered by Virgin Atlantic, Bmi (some A330 flights only), Air New Zealand, JAL and Qantas are perfectly acceptable. JAL has dedicated check-in counters and allows passengers to access the airport lounge. Alternatively, you could take premium economy class on a daytime outward flight but pay more for business class on the return overnight flight. Routes from the UK to North America and the Gulf would fall into this category.

13. Plan your overseas hotel stays carefully

Sterling’s weakness means UK firms are forking out even more for their employees’ overseas hotel bills. One solution is to book cheaper accommodation but this has its drawbacks as the location may not be so convenient, and in places such as Asia and the Middle East, you need a certain grade of hotel to show “face”. So a better way to save money might be to plan your stay carefully. Travel management company Hogg Robinson Group says that in the past year UK firms have cut the time their staff are away overseas by 20 per cent. This can be achieved by booking day trips or taking early flights out and late flights back. The latter method would allow two full days’ working time for the cost of one night in a hotel. When flying long-haul, you could also opt for overnight flights to save on hotel bills.

14. Take public transport rather than taxis

It won’t apply in all cities but it is a good option in places that have an efficient metro, tram or underground system. This includes most main cities in Germany, along with London, Paris, Brussels, Amsterdam, Zurich, Hong Kong, Singapore and Tokyo.

15. Join a hotel loyalty scheme

Once you’ve stepped off the basic tier and start progressing through the grades it’s more likely you will be given better rooms or an upgrade to the executive floor or a suite. Membership is free and most firms have no expiry date for using points.

16. Book round-the-world tickets

These are a long-standing way for global executives to save money, as they enable a traveller to visit many different cities around the world for little more than the price of a single long-haul return. The best value is offered by business class tickets marketed by the three main airline alliances – Oneworld, Star Alliance and Skyteam. Each has its advantages depending on where you are based and the cities you need to visit.

17. Consider alternative train companies

Companies such as Chiltern Railways, Hull Trains and Wrexham and Shropshire cover destinations neglected by the big rail firms, and their ticket prices and booking conditions mean you pay less. Take London-Birmingham: a peak-time flexible standard class day return with Virgin Trains from Euston will cost £132, whereas the same ticket with Chiltern Railways from Marylebone costs £32. It may take 40-45 minutes longer but a £100 saving isn’t to be sneezed at. Chiltern also boasts the best punctuality of any UK rail firm.

18. Cut communication costs when overseas

Use a Voip provider such as Skype for long-distance phone calls instead of the hotel phone. You will need a laptop or PC to use this facility. Another suggestion is to ask your mobile provider about the different options for cutting the cost of making and receiving calls. Vodafone has a Passport scheme that can be used in most European countries, along with Australia and New Zealand. Pay a connection fee of 75p per call (outgoing or incoming) and then chat at your usual UK rate.

19. Book with lesser-known carriers

You will almost always get a good air-fare rate when you choose a carrier that isn’t well known in a particular market or on a particular route. Did you know that Singapore Airlines offers its award-winning service in competition with Lufthansa between Frankfurt and New York, or that Qantas plies London Heathrow-Hong Kong? Aer Lingus also flies from London Gatwick to mainland Europe, while Lufthansa Italia flies London Heathrow-Milan.

20. Don’t pay minibar prices

Advise drinkers in your company to buy miniatures from duty-free rather than relying on the hotel minibar. Some airports have duty-free shops on arrival for this very thing. Another idea is to choose a hotel with an in-room fridge rather than a minibar and then shop for snacks locally. Some of the newest Courtyard by Marriott properties in mainland Europe have this facility, complete with a lobby shop for snacks and drinks.

21. Read Business Traveller

An obvious one, but each issue is full of valuable information. For example, see our series of articles on surviving the world’s most expensive cities (page 30), or our regular loyalty section outlining the latest airline, hotel and car rental-scheme deals (page 50). To save 20 per cent on a subscription to Business Traveller plus receive a free Regus Businessworld gold card worth £199, visit businesstraveller.com/regus

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