![FCM Travel | Business Travel Spend](/sites/default/files/styles/large/public/fcm-travel-business-traveller-average-spend-trips-lp.png?itok=mATje7Ho)
Is SA business travel more expensive than the rest of the world?
As we kick off 2024, it's that time to take a peek at your travel budgets and make a few tweaks based on predictions for the upcoming year. When it comes to benchmarks, the Global Business Travel Association (GBTA) has some interesting numbers to share. On a global scale, the average spending per business trip hovers around $829 per business trip (R14,922).
In South Africa, the picture of business travel spend is a bit more complicated. According to FCM data from August to October 2023, South African companies typically dish out about R15,138 for each domestic trip and R34,943 for international business travel. But why the hefty price tag for domestic travel compared to the global business travel average?
![FCM Travel | Business Travel Spend](/sites/default/files/styles/downscale_200x200/public/fcm-travel-business-traveller-average-spend-trips-price-tag-icon.png?itok=JUqIbgB5)
"Our local travel costs are pretty steep because there's a limited number of flights available. Plus, with the rand not doing so great, we end up shelling out more for business trips within the country – it's a different scenario compared to what's happening globally," explains Bonnie Smith, GM at FCM Travel.
There are also unique factors at play for South African business travellers. Geographical location and additional requirements for certain destinations influence both costs and travel time.
Get strategic: 5 ways to rein in your business travel spend
The complex numbers around South Africa's sky-high domestic and international corporate travel spend make it clear - it's time to take control of these costs before they take control of you. But drastic cuts aren't the answer. With the right strategy (and a little help from your travel management company [TMC]), you can still send your teams where they need to go without blowing up the travel budget.
Here's where to start:
1. Score discounts from hotels and airlines
Your spending power gives you major leverage, but you’ve got to know how to use it. A travel management company like FCM Travel already has those relationships and preferred rates locked in to hook you up.
2. Set some common-sense limits
Keep things like air class, hotel choice and meal budgets reasonable based on seniority. Your TMC can help tailor guardrails that align with your culture and contain business travel costs.
![FCM Travel | Business Travel Spend](/sites/default/files/styles/downscale_200x200/public/fcm-travel-business-traveller-average-spend-trips-data-icon.png?itok=NnIDwB0z)
3. Get nerdy with the data
Uncover spending and behaviour patterns, cost creep, and more to pinpoint savings hiding in the details, thanks to your provider's number-crunching skills. Use insights your TMC provides you with about business travel expenditure to refine policies.
4. Consolidate supplier partners
Less is more when it comes to scoring deals. Prune any excess suppliers and double down on a few key partners to secure prime bulk discounts.
5. Get everyone on the same page
Set clear policies and ensure everyone knows their part in responsible booking and travel expense management. Your travel manager can help craft and communicate guidelines.