Strategies for Managing Travel Expenses in Business Enterprises

The article delves into effective strategies for managing corporate travel budgets to enhance financial efficiency while maintaining sustainability. Key areas discussed include sustainable tourism mobility, strategic budgeting techniques, cost-effective travel methods, and the impact of technological advancements such as online payment systems. The use of credit cards and other modern payment solutions is highlighted as a means to control expenses effectively. Additionally, the analysis covers how social media influences consumer decision-making in travel and tourism, emphasizing the need for businesses to adapt to these changes. References are made to various studies that support the importance of understanding traveler behavior and optimizing travel processes through innovative approaches.

Running head: ORGANISE BUSINESS TRAVEL
Organise Business Travel
Name of Student
Name of University
Author Note

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Table of contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................2
Identifying forms of payment of business and travel......................................................................2
Question 2........................................................................................................................................4
Describing policies and procedures applicable to the organisation.................................................4
Question 3........................................................................................................................................5
Providing examples to improve position of the organisation..........................................................5
Question 4........................................................................................................................................6
Explaining credit arrangement that can be used by the organisation..............................................6
Question 5........................................................................................................................................7
Describing the best payment method and credit management method...........................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
The report focuses on the ways to organise a business travel keeping in mind the methods
of payments that are needed to be done. Business travels often require certain discipline that
needs to be kept in mind while conducting the trip. The arranging of the travel is done by taking
evidence from a case study that describes the travelling provisions required by Biz Ops
Enterprises, an Adelaide based organisation. The requirements of the travel are provided and the
ways by which it can be conducted efficiently is analysed. The report identifies the forms of
payment that are required for business and travel along with the advantages and disadvantages.
The policies and procedures required for improving the organisation are also described along
with the credit arrangement technique used in the organisation. Scenarios are provided in order
to identify the best payment and credit method that is needed for effectively conducting the
travel.
Question 1
Identifying forms of payment of business and travel
According to Tirachini (2013), business travel requires the planning of certain important
factors that ensure that an organisation does not suffer from the loss. The arrangement of a
proper itinerary is required in order to arrange the travel in a smooth manner. Apart from this, the
payment method also needs to be kept in mind while conducting business travel. This is mainly
done in order to ensure that the scheduled travel is kept within the budget and that extra cost
required can be put forward to the expense of the company or of the individual (Roy and
Venkateswaran 2014).

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Credit cards- Credit cards are the simplest manner in which a company can make
payments. In the case of high bills, the use of credit cards can benefit a company as well as the
individual. This is mainly because of the fact that company or individual can make the payment
later after purchasing the product. The advantage of this payment method is the fact that some
credit card companies give out points for the purchases made with its application. Apart from
this, Becker (2016) stated that the portability of the card provides a huge advantage for the users.
However, there are certain negative consequences as well. More often, particularly in the modern
era, the use of credit card may even get the account numbers be hacked.
Lodge cards- Liu et al. (2014) stated that the lodge card is a type of credit card that is
mostly used for business purposes. The lodge card is linked with the travel management provider
and all expenditure is charged to that card. These cards are easy to use and universally accepted
for business trips. This is mainly due to the advantage it provides. The companies provide points
and purchasing power to people who use it in an effective manner. The portability is also an
important factor for its use. The disadvantages include the fact that the data may not always be
accurate. This may lead to a strained relationship with the organisation in case charges are made
unethically.
Credit account- Credit account is considered to be the most effective form of payment
method. The financer of a company can track down the invoices provided by the hotels and
claim the excess VAT that has been charged (Blanke and Chiesa 2013). The advantage of this is
the fact that the credit account provides perfect data and is applicable to all merchant fees. No
employees can be blamed for the excess bill that is provided. The disadvantages include the
limitation of the credit exists unlike the holders of a credit card or a lodge card. At times, not all
the charges that are incurred during the travel are provided in the credit accounts.

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Question 2
Describing policies and procedures applicable to the organisation
In order to ensure that the travel and accommodation process is conducted in an easier
and smooth manner, it is important that every organisation maintain certain policies and
procedure. In the case of Biz Ops Enterprises, the managers need to put up strict policies that
define the travel and accommodation booking that needs to be done. The main policy regarding
travelling and accommodation is the fact that the hotel that needs to be stayed in should not
overshoot the budget of the travel. The lodging needs to be booked keeping in mind, the urgency
of the travel and the people that are involved in case any meeting takes place. As per the cases
study, it has been seen that Chang Lin and Johan have certain specifications that need to be
followed. This needs to be reduced in order to maintain the budget ser for the travel.
Apart from this, it is also seen that the accommodation of the two people is not clearly
stated. This is an important factor, as the overhead cost of travelling from the hotel to the office
also needs to be incurred by the organisation. The cost of booking a car for the two people may
incur extra cost for the company. The purchase can be made using credit accounts that can help
in reducing the excess cost that is taken from the people. Xiang, Magnini and Fesenmaier (2015)
stated that the use of credit accounts instead of personal credit cards could help an organisation
to maintain the cost required for travel. Thus, Biz Ops Enterprises can keep every record that is
incurred by the individuals. However, the managers need to keep in mind that the financial team
maintain all the costs in an effective manner. The costs for consuming the basic meals need to be
calculated separately than the cost required for the consumption of meals that did not require to
be done (Hudson and Thal 2013). Thus, the budget of Biz Ops Enterprises can be easily

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calculated if these are maintained in an effective manner. Hence, the organisation can improve
the financial stability and ensure that the business travels are conducted in a smooth manner. The
schedule of the company needs to be planned in a manner such that the organisational
productivity is not compromised. This is an important factor for the success of an organisation in
a competitive environment.
Question 3
Providing examples to improve position of the organisation
In order to improve the position of Biz Ops Enterprises, it is necessary to make a few
changes that are required for its success. The changes need to come in the form of improving the
policies that it holds in the travelling policies. The changes need to include effective
management of the travel calendar and changes in the preferences of the people. According to
Webster and Ivanov (2014), the manner in which an organisation spends its budget on a
company signifies the success that the company generally has. However, certain factors need to
be kept in mind in order to incur profit in the travels (Gustafson 2014).
One of the ways by which the company can prevent the excess budget is by ensuring that
the specifications of the people must not be entertained. It is seen from the case study that since
Chang Ling is a frequent flyer, the person has demands that need to be fulfilled in order to get
the best results. The fact that the person prefers an expensive stay in the hotel is a cost-incurring
factor for the company (Standing, Tang-Taye and Boyer 2014). Thus, the demands of Chang
Ling are an important factor that needs to be considered by the company. It is also seen that
Johan, a program member also certain demands that need to be changed. The fact that he needs a

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late checkout easily incurs a cost that is not predicted during the budget. Every company predicts
budgets that need to be spent while travelling. Small costs as checkouts are not included as these
are unforeseen and out of the regular expense (Cohen et al. 2014). Hence, these are some of the
areas that need to be maintained in order to gain success in the organisation.
Another important factor that needs to be considered is the fact that the management did
not have an idea about the accommodation of the people. The distance of the place of lodging
along with that of the distance from the office needs to be in close proximity in order to reduce
the overhead costs (Tan et al. 2014). This is another small expenditure that is not predicted while
forming the travel budget. The overhead can be reduced with the strategic selection of
accommodation place that can maintain a fair distance from the office as well as from the airport.
Thus, Biz Ops Enterprises needs to keep these factors in mind and maintain changes in the
organisation.
Question 4
Explaining credit arrangement that can be used by the organisation
According to Ying (2015), credit arrangement is a method by which a bank arranges a
loan for customers. This is a legal process for the transfer of money for a specified time. The
rules and regulations that are associated with the contract are outlined in the credit agreement.
The interest that needs to be maintained after taking a loan can be calculated with the application
of credit agreements. The types of credit agreement that exists include:
Credit card- Credit cards are the most effective form of credit arrangement that can be
done in order to maintain accurate financial status. In the modern days, this is an important

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arrangement that most people tend to use. Various types of credit cards can be used in order to
suit the financial needs of an individual (Chen, Xu and Shen 2017). In the case of Biz Ops
Enterprises, it is necessary such a credit arrangement be used in order to maintain the financial
statement of the company.
Bank loans- Bank loans can be paid off in monthly instalments taking into consideration
a particular period. It can be said that mortgages are used often in order to purchase properties.
However, the case study suggests the credit arrangement required for business travel (Nie and
Yin 2013). Hence, bank loans are not suitable for Biz Ops Enterprises, as it does not have to take
loans in order to arrange for business travel from the organisation.
Overdraft- Overdraft allows individuals to withdraw money from the bank account if it
reaches zero. Certain arrangements need to be made in order to use the benefit of the overdraft
facility (John and Susan 2015). The limit is stated depending upon the account and the history of
the person. It needs to be kept in mind that Biz Ops Enterprises, as mentioned in the case study
does not require the use of overdraft. This is mainly because of the fact that the travelling and
accommodation for the company does not need assistance from the bank.
Question 5
Describing the best payment method and credit management method
Arranging airfares through a designated travel agent with which the company has a service
agreement- Payment can be made using credit account in order to maintain the record.
Paying a hotel room and associated expenses on check out- Payment need to be made using the
credit card.

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Paying a local taxi company as they drop a traveller to their destination- Payment can be made
using cash but keeping the mind to receive the receipt of payment.
Paying for fuel for a rental car just prior to dropping it off- Payment to be made using credit
account
Entertaining business colleagues, clients or potential clients- Payment to be made via cash.
However, this needs to be done at the expense of the person concerned.
Paying for an unexpected emergency airfare from an international location back to Australia-
payment can be made using credit account.
Conclusion
Hence, it can be concluded that Biz Ops Enterprises needs to keep certain factors in mind
while maintaining the travel expenses of the company. The fact that the company needs to
estimate the budget in a proper manner is necessary before setting up the travel calendar. For
reducing the cost of travel, it is necessary for the company to incur some methods of payment
that can be effective. These methods can help in managing the financial cost of the company and
ensure that the budget is not overshot. The use of credit cards, lodge cards and credit accounts
are some of the best methods that can be used in order to maintain the budget of the organisation.

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