How far can $25,000 take you in business travel?

How far can $25,000 take you in business travel?

If you're an average small to medium business, you might be booking business trips once a month, or up to multiple times a week. Whether your business travel is limited by your needs or by costs, there's little doubt you could do so much more with a bigger budget.

To get an idea of how far a $25,000 boost to your business travel budget could take you, we spoke with Aaron Bywater, Team Leader at Flight Centre Business Travel. Aaron broke down the average costs of a trip and what a significant increase in your budget would mean for your business.

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The average cost of flights for business travel

Flights are generally the first expense that travel bookers come across when planning a business trip. But the average cost of flights is hugely dependent on where you're booking travel to, with a significant difference between domestic and international fares.

"When flying domestically between capital cities, such as Sydney and Melbourne or Brisbane, you're looking at around $200 one-way, so between $400 and $500 return," says Aaron.

"If you're travelling to Europe, a business class fare will be anywhere between $6,000 and $8,000 return per person, while economy class is around $1,500 to $2,000 return."

Average spend on business travel accommodation

With flights sorted, attention turns to accommodation, and again hotel costs can vary. A business' travel policy might say where travellers have to stay or how much they can spend on accommodation per night. Regardless, the average budget for hotels tends to be around $200 to $250 per night.

"Our travel managers will look at hotel booking options to fit the traveller's requirements, but lately budget has been dictating that we book around $200 a night. Anything less is hard to find in Sydney and Melbourne anyway," says Aaron.

"But we can book anything the traveller wants, and this can mean that accommodation booked for those higher up in a company might be around $300 a night."

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Extra business travel costs to consider

A travel budget will be significantly lacking if it doesn't take into account the extra costs associated with travelling for work. From ground transport to meals, there's a lot more to business travel than flying and staying there.

"Expenses on the ground, like food and taxis; people need to factor these in when going to Melbourne, for example, for a few nights. It's not just going to be flights and accommodation that make up your business travel expenses," says Aaron.

Boost your business travel budget

When considering the cost of flights, accommodation and extras, it's fair to say that a business trip travelling from Sydney to Melbourne for two nights would cost a minimum of $1,000. If your traveller does that twice a month for a year, that's around $24,000.

Now imagine if you could offset that cost with a $25,000 grant from Flight Centre Business Travel. The impact on your business would be huge, says Aaron: "It would make a massive difference. If you only look at international travel, so return economy at around $2,000, that's 12 flights to Europe."

"The benefit also depends on how much people are booking; a business with a travel budget of $20,000 a month, will essentially get a month of free travel with the Business Travel Grant. For a budget of around $10k a month, then that's two months of travel, for free."

And if you calculate the potential return on investment of your business travel, you could experience serious growth in your business.

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Go further with your business travel budget

If you're currently doing the sums, you're probably already seeing the opportunities that an extra $25,000 in travel would bring to your business. At the very least, you could increase the number of times that your travellers can hit the road, which in turn generates growth for your business. As Aaron says: "you're only going to help yourself, but you have to be in it to win it."

In the meantime, talk to your dedicated Travel Manager or contact us today about managing the costs of your business travel. Because even without the Grant, there are ways your budget can take you further.

Win a Corporate Travel Grant valued at over $25,000

At Flight Centre Business Travel, we know firsthand the pressures that are placed on emerging & small to medium businesses every day and we’re here to make your business travel easy; our Corporate Travel Grant is another way we want to help you achieve your business goals sooner. In 2018, we launched our Business Travel Grant, which awards one deserving business and four runners up with a boost to their business travel budget.

Applications are now open for the 2019 Corporate Travel Grant from Flight Centre Business Travel. Find out how you could be our grant recipient and get set to take your business places.

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