Most CEO's agree that it is imperative to cut costs wherever possible to increase their bottom line. So when it comes to their employee travel expenditures it may initially appear that per diem is the way to go to control their costs. This may not always be the case. In the majority of companies that CrewFacilities.com has analyzed their overall travel costs could have been reduced by converting from a per diem travel policy to the basics of controlling and managing the company's cost for each hotel stay on a nightly basis.
A company that has a per diem of $75 per day, per person, which includes $25 for food. In many instances it is challenging for an individual employee to find a room for $50 a night that will be a quality facility where they will actually get a good night's sleep. And a great possibility that the employee instead chooses to retain the monies and stay in their vehicles or try and drive home, or to a location that is too many miles away after a very long shift. When we look at what it cost the company for 2 employees, ($75 each) at $150, we can easily ascertain that they could have reduced this cost to a quality hotel room at $79 which included a breakfast meal. And then the $50 for the 2 per diem food cost would have been retained for 2 meals per person.
Thereby saving $10.50 a day per employee. With 120 employees traveling just 50% of the year a $229,320.00 savings is acquired. And even more when additional meals are included in some of our preferred facilities (during included in some locations).
Lodging is a major expense category and a sometimes an overlooked cost management opportunity. Even “time” and indirect administrative cost associated with lodging are often not considered as part of this overall expenditure. Many companies are clear on this issue. What they may not initially realize is that they can outsource that time and labor for no additional cost.
At CrewFacilities.com, our expert team is committed to reducing our client’s overall lodging expenditure and capitalizing on cost saving processes. We partner with our clients in creating a customized solution and quickly implement proven strategies to meet their needs.
Using a travel management company offers additional added values: