Increase your cash flow by getting refunds quicker
Cash is king, or so the adage goes. For the financially minded it is always better in your pocket than in a suppliers pocket, especially when eagerly waiting for a refund. Refunds for cancelled flights and trains are a painfully slow and tedious process. With some companies there is a six week plus lead time even before COVID-19, making the refund process crippling for cash flow.
When you buy direct from a website there is little power you have to speed up the refund process as you are one of the 1000’s of refunds due to take place you get told to sit tight and we’ll get round to you at some point in the future. However, if you buy through a travel management company they can often speed up the process and for certain suppliers, issue your refund which can help increase your cash flow. The next step is managing the refund internally, and again there can be some additional cost savings to be made through outsourcing this element.
Save Internal Administration Costs
The average expense report costs £27.20 to process.
Aberdeen Group via spendesk.com
There is a massive saving to be carved out by outsourcing travel administration costs. It allows your internal teams to focus on their core tasks. Within every specialism, travel administration has its own intricacies shortcuts and paid for systems that can speed up your travel administration and management information to spot rogue spend.
Avoid credit card reconciliation
By using a travel management company you can cut out the need for your finance team to manage all the internal credit card reconciliation, reporting and management for your employees. Reduce those calls and emails to staff requesting them to fill in reports correctly. Did you know on average 1 in 5 of expense reports are filed incorrectly according to the GBTA.
Missed Savings – Not Checking Alternative Suppliers
Missed savings come from a variety of different factors. One issue faced by finance teams is that staff tend to only buy from their favourite website and don’t check for better pricing. By not comparing pricing and sticking with what they know there can be significant cost increases.
Last Minute Bookings
Another missed saving is travellers booking last minute or on the day, which increases the price. Travel Management Information through systems like Travelogix, can highlight those booking last minute and the ‘repeat offenders’ and conversely show teams and individuals sticking to your company travel policy.
Getting Better Deals From Key Suppliers
Often companies find that they tend to purchase the same hotels, flights and car hire regularly, yet they don’t get any discounts for their continued business. The more purchasing power you have the greater the likelihood of securing better pricing. If you are linked with sister-companies consolidating travel could give you more negotiation capabilities and help you secure better pricing and discounts.
Negotiating discounts is also not easy, and not many hotel chains or suppliers prioritise meetings with individual companies to discuss how you can reduce the spend you have with them. If you are finding this difficult feel free to reach out to me, and I can give you my top tips for securing great discounts with suppliers.