What is the corporate rate? To start with the basics, corporate rates are the discounts provided by car rental companies, airlines, hotels, and/or other travel providers to individuals/certain groups traveling for business purposes.
Corporate pricing for hotels and airlines often begins at 10% off the regularly publicized rate. The hotel obtains more frequent and possibly loyal guests and possible referral business in exchange for the agreed-upon discount. Corporate rate reductions can go well beyond the usual ten percent starting point, especially if your firm negotiates a more significant discount.
Some of the reasons why corporate fares boost an organization's performance and help schedule all their staff's business travel requirements in an effective manner are as follows:
A) Discounted Rates
You might give rewards to workers who save money on business visits to assist you in succeeding in reducing travel expenditures. On the other hand, employees might prefer to travel in greater luxury rather than save money because they aren't genuinely paying from their own pockets (and even if they are spending from their own pockets, they will eventually get reimbursed). As a result, they have no incentive to save money. This is why some companies are devising incentive systems that allow employees to keep a portion of the cost savings from the trip.
B) Cut down costs
Travel expenditures are the second-highest business expense in most organizations and one of the most difficult to manage (most challenging, yes, but not impossible). With corporate travel spending expected to reach $1.7 trillion globally by 2022, it's time to start planning your travel budget.
C) Added benefits
Some companies provide a part of their per diems to employees for personal expenditures. Employees can spend the money on the work trip or return it to their company, which will be reimbursed to their account. In either case, the employee receives a small sum of money as a reward for assisting the firm in saving money.
TrackEx, a cloud-based travel and expense management software, allows you to streamline per diem expensing process by fixing daily allowances for traveling employees as per company preferences or using default country rates. From scanning receipts on the go to sending expense reports – all could be done quickly in one tap at TrackEx. Some of the other features worth knowing are-
- Streamlined Payment Process
- Manage credit cards with fraud-check
- Multi-level Encryption
- Automated Mileage Tracking
- Automated permissions for maintenance of payment gateways
- Advanced fare-search intelligence across G.D.S. for pre-approval and instant bookings.
- Real-time expense reporting with QuickBooks
- Integrations with any of the platforms like CRM, ERP, HRMS, or accounting software
- Analytics, reports, and insights
- 24/7 technical and customer support
You can save up to 70% of your time and more than 20% on travel expenses. TO know more, visit their website: https://trackex.com/