With business travel picking up and companies tightening their belts, finding smart ways to reduce expenses is more important than ever. While expecting to save on everything is unrealistic, there are strategies that can help planners trim costs without cutting corners
Group travel costs can quickly spiral out of control, especially for business events.
Whether planners are organising a teambuilding retreat or a major conference, handling flights, hotels, and ground transport is not always straightforward. And despite what many assume, larger groups do not always mean lower costs.
Airlines are hesitant to offer discounts to smaller groups (less than 20 travellers). Even larger groups of 70 or more might only get marginal savings. Meanwhile, hotels and ground transportation are usually easier to negotiate, particularly if planners book early or during off-peak times.
Internal delays can also be a costly problem. According to TruTrip data, only 30 per cent of group booking requests are secured at the initial quoted rate. As time passes and availability shifts, prices can increase by as much as 29 per cent. The faster planners can lock in the bookings, the more the company will save.
Here are five practical ways to keep group travel affordable.
1. Leverage Travel Management Companies (TMCs)
TMCs can help handle the more complicated aspects of securing deals on hotels and ground transport. While airlines may sometimes prefer to handle direct group bookings, in those cases, TMCs can still play a key role as facilitators rather than cost-savers by negotiating terms, coordinating logistics, and ensuring a smoother booking process.
Work with a TMC to negotiate group rates for hotels and transport, and leverage their expertise to manage flight bookings efficiently.
2. Book smaller groups
Instead of booking all seats at once, think about splitting the group into smaller chunks. For example, if 24 seats are needed, book the first eight at individual rates, then the next eight. If the third set costs more, planners can switch to the group fare for the remaining seats. This way, you can still snag the lowest available fares.
Breaking larger groups into smaller bookings gives planners flexibility and often leads to better pricing.
3. Use economic fare options
Airlines like American Airlines offer group deals with added perks like seat selection and luggage, but not everyone needs those extras. In some cases, booking restricted individual fares with fewer perks might save more.
Combine group and individual fares for a balanced mix of savings and benefits.
4. Avoid internal delays
Approval delays can be costly. Waiting even a couple of days to approve a booking can cause prices to rise significantly. For example, a hotel booking approved two days late could see a price increase of up to 29 per cent, according to TruTrip data. Fast decisions often lead to the best deals, so set clear internal deadlines for approvals to avoid price hikes.
5. Plan more strategically
Choosing destinations and travel dates wisely can make a big difference. Opt for locations that are easier for most attendees to reach and book during off-peak periods. Travelling midweek or outside of holidays can lead to significant savings.
The realities of securing the best rates
While it is tempting to think that group bookings should always come with huge savings, that is not always the case – especially with flights. Negotiating hotel and ground transport deals is usually more flexible, but airlines tend to be less accommodating, particularly for smaller groups. Early planning and flexibility are key to securing better rates.
With business travel spending projected to hit US$1.5 trillion by the end of 2024, getting the best deals is only becoming harder. But by following these strategies, planners will be better positioned to manage costs without compromising on quality.
Final say
Managing group travel does not have to be a budget breaker. By using TMCs when appropriate, breaking up larger bookings, opting for flexible fare options, avoiding delays, and planning strategically, planners can significantly reduce costs.
Imran Dosani is head of support at TruTrip, a rising TMC in South-east Asia. With a background in the airline industry and experience as a customer service supervisor and event manager, Dosani combines his passions for travel and customer service to provide top-notch support to business travellers.
