Sunday, November 7, 2010

Cost-Cutting Methods of UK Businesses

UK businesses have worked hard to cut the costs of travel during this time of economic hardship. A new report indicates that the trends that have started now are likely to continue for at least 2-3 years. And, in fact, many people believe that UK businesses will continue to use this new money-saving model for cutting business travel expenses even after that when the economy (hopefully) has improved.
There are five leading ways that these businesses have cut the costs of travel:
1. Video conferencing and teleconferencing instead of travel. As technology improves, it is possible to replace in-person meetings with virtual meetings that very closely replicate the face-to-face experience.
2. Replace the use of taxis with the use of public transportation. Business people on vacation are no longer being reimbursed for expensive cab costs but instead are asked to take buses and trains
3. Having employees fly coach. It is increasingly common for business travelers to fly coach instead of the more expensive business class and especially in place of first class. Some businesses do allow their employees to fly a better class on the way to a destination but then require them to travel economy class on the way back
4. Downgrading hotel choices. Business travelers are no longer able to enjoy their choice of luxury hotels but instead are limited to more affordable options
5. Careful consideration of the importance of each trip. One tip recommended by more than one in four employees that is now being implemented is much more careful assessment about the need for business travel before it takes place. If the return on investment for the trip isn’t worth it then the trip shouldn’t take place.

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