How To Cut Travel Costs

Image: Fancy/Veer/Corbis

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Just about the time that Lehman Brothers tanked, business travelers blew right past the issue of whether we would have to cut back. Two months on, the only issues now are how much we'll have to slash and whether we can do it with a modicum of style and dignity.

Some companies have told their business travelers to double up in hotel rooms and switch to coach even for the longest-haul international flights. Others have been told to find friends and family on the road and beg a bed or a sofa. And fast-food dollar-menu dining has been suggested as on-the-road sustenance.

Even in these down times, I think we can do better. There are sane ways to cut travel and entertainment expenses. You won't be living the lush life, of course, but you won't feel like a traveling tramp either.

Plan Ahead and Stick to the Plan

Business travelers have traditionally demanded complete flexibility when it comes to flight schedules and hotel reservations. After all, they reasoned, a meeting could run long or an extra day on site might be required. But this go-with-the-flow attitude is costly because airlines and hotels charge their highest prices for unrestricted, fully refundable arrangements.

The obvious solution: Plan ahead. You can cut your airfares by as much as 70 percent if you book your travel far enough in advance. One example: American Airlines is asking $534.50 one-way to fly coach tomorrow from New York to Los Angeles, but only $209.50 if you book just a week in advance. International business-class savings can be even more dramatic. British Airways  wants $8,300 for a roundtrip from Chicago to London tomorrow. Plan 30 days in advance, however, and the fare drops to $2,800.

Hotels have a similar price scale. I've just booked a stay in a New York Hilton hotel later this month for just $164 a night. The same hotel is asking $230 a night on a walk-up basis.

But these savings do have a cost. Most plan-ahead hotel and airline rates require full prepayment. Change your plans and you'll not only pay the full, walk-up rate, you'll pay a "change fee" too. So plan carefully and then stick to it. Most clients will understand if you explain that, in the long run, you're saving them money by keeping your costs under control.

Control the Ground Game

Business travelers obviously focus on the big-ticket items like airlines and hotels, but ground-transportation costs can pile up fast. Renting a car during your stay will surely be cheaper than grabbing an endless series of cabs or black cars. Driving yourself to the airport instead of using a car service can save hundreds of dollars even after you factor in the parking charges.

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