work: How to save money

Among our clients there is a big chemical company. Their travel policy states that within Europe all travel has to be in economy. When they travel from Italy to Germany returning the same day, a ticket in economy class costs around €850, on LH (Lufthansa), and a ticket in business class costs €860 (depending on the route, but that’s a fair estimate). Yes, only €10 difference. Still, they travel in economy class. Isn’t that stupid?

If you work for a company who doesn’t care about travel expenditure, have fun and enjoy all your freedom. But if you have to be careful about your travel budget, then there are a few things that you should keep in mind.

The first and most important rule to follow is to keep in mind not to save every possible penny just for the sake of doing so. What might look to you as a saving in the first instance, could turn out to be an extra expenditure in the end.
For instance: air tickets including a saturday night stay are usually much cheaper. But the comparison between the two air fares is not a realistic saving; you have to take into account the extra night in a hotel, the extra dinner at the restaurant, the extra 24h at the airport parking, etc. How much are you really saving in the end?

Business travel is what generates good cash for airlines, hotels, car rentals etc. They know that the key element to business travel is flexibility and that’s what you’re really paying for.

However there are ways to save on your travel expenses!

… next installment tomorrow, I’m off to bed …


Blogger Eric said...

I noticed that you mentioned that if you work for a company that doesn't care about travel expenditure, you should enjoy your freedom. Personally I'd rather work for myself and enjoy freedom every day in all things I do.

I'm actually doing that. One of the main reasons is because I paid close attention to what I learned from Jame's Brausch's Freedom Business System (http://freedombusinesssytem.com). If you want to be free enough to travel when you want and where you want, then you need to have a system to do it. It isn't hard when you learn from someone who does it every day.


24 January, 2008 03:24  

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