Business travel accounts for a sizable portion of business costs. The average daily expenditure on air travel is €162, and this figure is only anticipated to rise over time. The hidden cost of business travel is, however, something that most companies struggle to consider.
Hidden costs are liabilities that a corporation incurs but does not show up on its balance sheet. These fees drive up business travel costs and reduce the benefits of traveling for business. We’ll talk about a few of the expenses associated with business travel in this blog.
Business Travel Burnout Costs An Estimated $3 Million
The average business traveler travels 26 times a year and stays away from home for about 84 nights, according to “tClara”, a business that provides corporate travel statistics. This equates to missing 17 work weeks from the office. Up to two-thirds (65%) of this travel happens during free time on the weekends and in the evenings.
Or, to put it another way, frequent travelers miss an average of 4 months out of the year at work and home, costing $3 million a year in lost output. This is when the effects of opportunity cost and travel fatigue begin to take a toll.
The Top Hidden Costs Of Business Travel
These days, everything is more expensive, and this includes business trip. The hidden expenses of corporate travel rise along with the typical cost of a business trip. Even while cutting back on business travel may not be an option, your company will save time and money if you manage your travel better and develop tools to help your travelers.
- Hotel Accommodation
- Trip Delays
- Parking and Transportation Fees
- Cellular Roaming Fees
- The VAT Rates In Different Countries
1. Hotel Accommodation
Hotel and accommodation costs can sneak up on you and don’t reveal themselves until you’re nearly at the payment confirmation page. Your stay may seem to cost only $100 a night, but if fees, taxes, and other expenses are taken into account, the actual cost to you is much higher.
2. Trip Delays
Even if the full trip is paid for, the budget may not allow for setbacks like canceled or delayed flights. If you need to remain for a few hours, it shouldn’t cost you more than a coffee in the airport lobby, but if you need to stay overnight, plan on paying for a hotel room.
3. Parking and Transportation Fees
Train tickets, cap If you’ve already rented a car, you’ve considered the cost of transportation, but depending on where you’re going, you might not have remembered to account for parking expenses. Even though most parking lots now accept credit cards, some still require cash, so make sure you have enough on hand that you budgeted for.
4. Cellular Roaming Fees
When you leave the country, your cell service won’t end; instead, it will change carriers. This is roaming, and each minute, message, and megabyte has a cost. Whether you’re emailing a client or contacting a friend, your smartphone use will end up costing you a lot on your subsequent payment.
5. The VAT Rates In Different Countries
VAT is another issue that those who spend on business travel must handle. Value-added tax rates vary depending on the nation, but there is no denying that taxes on food, lodging, transit, and tolls make up a considerable amount of a person’s unreported trip costs.
airssist helps you to reclaim the VAT you have paid in the country you traveled to efficiently, so sit back and relax while we do the work. Contact us