How Your Business Can Save Money on Travel Costs

How Your Business Can Save Money on Travel Costs

We can’t deny that owning and operating a car can be costly, whether we’re using it for our personal lives or our work or business. Especially when our business’s day-to-day operations require delivering products or goods or driving from one location to another, transportation is another expense we always need to take into account when running our company. If your business involves a lot of delivery, transportation, or travel through driving, here are some ways you can cut costs on transportation expenses.

Keep your vehicles well-maintained

Proper maintenance of your business’s official vehicle will not only ensure safe and reliable operations, but you can also significantly slow down its deterioration and maintain its resale value. One example is good auto-detailing—keeping it clean from the inside out, restoring its new appearance, inspecting every part and mechanism under the hood, and protecting it through a barrier like a vehicle paint protection film—will save you plenty of repair costs in the long run. Entrust the more complicated maintenance tasks to professionals and do the easy repairs yourself, and you will give your business vehicle a fighting chance.

Encourage walking or biking

Encouraging your team to walk or bike to work, especially if it’s not too big of a distance. Studies show that people of all ages would rather drive than bike or walk to a distance that can be covered by 15 minutes, and it’s unfortunate because we’re unnecessarily just burning through our vehicle’s gas. Encouraging your staff to bike or walk through short distances can yield significant benefits for your company:

  • You will foster a culture that cares about the environment and their physical health.
  • You will save gas expenses on automobile trips.
  • Biking or walking can also promote emotional and mental well-being since it’s a good opportunity for your and your employees to get some sun and fresh air outside your home and office.

You can promote walking or biking by coming up with competitions, like giving prizes or incentives to those who bike or walk the most throughout the week. If the weather and your location make it safe for you and your team members to bike or walk everywhere, make it a culture in your company.

Maximize public transportation

Public transportation will keep you and your team from paying exorbitant parking fees. At the same time, the costs of operating even the smallest of cars, including maintenance, fuel, and parking, can be some of the highest amounts your business will have to shell out when you consider just how much all these costs accumulate. If your business cannot completely do away with having a car, consider alternating between driving and using public transportation. If you’re having a parcel delivered and it’s light enough to be handheld, encourage your employee to take the train or the bus. According to the American Public Transportation Association, the average commuter can save around $847 per month if they choose public transportation over driving.

Strengthen carpooling and ride-sharing

If you and your team are attending the same event together or going to the same location at the same time, discourage everyone from bringing cars, especially if the company tends to reimburse their fuel costs. Advocate for them to arrange for shared Uber trips. Make a habit of communicating with your team about the importance of not wasting funds on unnecessary business travel expenses. This can begin by making a schedule or plan where your team can share rides or carpool as much as possible.

Save on insurance

insurance

One of the biggest expenses of having a company car is auto insurance. While we can’t do away with this expense since most states require it for the protection of the public, there are still plenty of steps we can take to reduce our insurance expense without violating automobile regulations:

  • Choose a manufacturer and model wisely. Go for one with a high physical and financial rating since some insurers take into account a model’s crash safety tests when considering the rates.
  • If you have good drivers in your company, leverage them by asking for discounts. If you have employees who have driver training certificates, your business might qualify for an insurance discount.
  • Take a second look at your coverage—you may not need every coverage offered in your current policy.

Because driving is so deeply ingrained in our psyche, we often think it’s the only efficient way to get our tasks done. Take these steps to ensure that your company cars don’t take a big chunk of your profit.

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