How To Reduce Travel Costs In A Business

Travel can be a very significant cost to businesses and organisations. Vehicles, whether hired or purchased outright, almost always represent significant financial outlay. Then there are the costs associated with running and maintaining those vehicles, including tax, insurance and fuel.


There are several easy tactics businesses can employ to reduce travel costs and make savings. In this article we take a look at how businesses can reduce non-vehicle travel costs and reduce costs associated with the running of fleet vehicles.





Non-Vehicle Travel Costs

Travel costs including taxis, public transport, flights and train fares are a normal part of business expenditure. Many employees are required to travel as part of their job role for a number of reasons including to fulfil customer commitments. In order to save money on these costs we recommend that businesses follow the following tips:


Vehicle Related Travel Costs

Purchasing or Leasing Vehicles

Many organisations operate vehicles, ranging from employee company cars all the way up to light and heavy commercial vehicles. Some choose to own them outright, while others use leasing arrangements or hire purchase.

However they are paid for, vehicles often represent a substantial cost for businesses. If you are looking to replace a commercial vehicle, we have some tips on how to reduce the cost:

Vehicle Running Costs

Vehicles are expensive to run, insurance, tax and maintenance are all regular costs that vary depending on the vehicle purchased. When looking to buy a new vehicle consider these costs and the lifetime vehicle costs not only the upfront purchase amount.

Petrol and diesel are major contributors to fleet costs, which is why businesses have to do everything they can to keep spending under control. They can do this in several ways:

Fuel Efficient Driving

Advising drivers on the best way to reduce the fuel by driving efficiently can help businesses save on regular fuel expenditure. Here are some tips for drivers:

Business Fuel Cards

Fuel cards can help businesses save money on fuel prices and reduce the cost associated with fuel expense admin. Companies using fuelGenie benefit from all of the following savings and operational advantages:

* The “over 3 pence per litre” saving message is based on the difference between the published Government Weekly diesel fuel prices and the price paid per litre for diesel by fuelGenie customers for the comparable period.  Over a 16-month period (02.01.2017 – 02.04.2018) fuelGenie customers buying diesel at Tesco, Morrisons and Sainsbury’s saved an average of 3.2 pence per litre when compared to the Government Weekly road fuel prices

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