5 Actionable Ways to Control Your Company's Travel Spend

In the world of corporate finance, travel and expense (T&E) often ranks as one of the largest controllable expenses, second only to salaries and benefits. For many organizations, it represents a significant line item on the balance sheet. However, managing this spend effectively is a delicate balancing act. Overly restrictive policies can stifle business growth, damage employee morale, and lead to non-compliance, while a laissez-faire approach can result in budget overruns and a lack of financial visibility. The goal, therefore, is not simply to cut costs, but to optimize spend—to ensure that every dollar invested in travel delivers a clear and measurable return.

Achieving this requires a strategic, multi-faceted approach that goes far beyond simply telling employees to book the cheapest flight. It involves creating a smart policy framework, leveraging technology to empower and guide employees, gaining deep visibility into spending patterns, and fostering a culture of cost-consciousness. An effective travel management program can transform T&E from a reactive cost center into a strategic investment in growth, talent retention, and operational efficiency. Here are five actionable, high-impact strategies that your company can implement to gain firm control over its travel spend, improve compliance, and enhance traveler satisfaction—all at the same time.

1. Build a Dynamic and Data-Informed Travel Policy

A well-defined corporate travel policy is the bedrock of any successful cost management program. However, a static, 50-page PDF document that is created once and then forgotten is no longer effective. In today's dynamic environment, your travel policy must be a living, breathing framework that is clear, fair, easy to access, and automated wherever possible.

Clarity and Simplicity: The most effective policies are those that employees can actually understand and follow. Avoid jargon and complex rules. Clearly outline key parameters, such as booking windows (e.g., "flights should be booked at least 14 days in advance"), cabin class restrictions (e.g., "economy class for all domestic flights"), hotel price caps (e.g., "maximum of $250 per night in major cities"), and per diem allowances for meals and incidentals. The policy should be easily accessible, ideally integrated directly into the booking tool so that guidance is provided in context.
Automation is Key: The single most powerful way to ensure policy compliance is to automate it. A modern travel management platform like Routespring allows you to build your policy rules directly into the system. This means that when an employee searches for a flight or hotel, any out-of-policy options are automatically flagged or hidden. For example, if your policy prohibits first-class travel, that option simply won't be bookable. This shifts the enforcement burden from manual oversight by managers to the technology itself, saving countless hours and preventing non-compliant bookings before they even happen.
Tiered and Flexible Policies: A one-size-fits-all policy rarely works for a diverse workforce. Consider creating tiered policies for different groups of employees. For instance, your C-suite executives might have different travel guidelines than your field sales team. Similarly, policies can be adapted for different trip purposes. Travel to a major client meeting may have a higher budget than travel for an internal training session. A sophisticated platform can manage these multiple policies seamlessly, applying the correct rules based on the traveler's role or the trip's purpose.
Regular Review and Iteration: A travel policy should not be set in stone. It needs to be reviewed and updated regularly—at least annually, or more often if market conditions change. Analyze your travel data to identify areas where the policy is working well and where it might be causing friction or unnecessary spend. Are many trips being booked outside the advance booking window? Perhaps the window is too restrictive for certain departments. Use data, not assumptions, to refine your policy and ensure it remains relevant and effective.

2. Leverage Technology for Pre-Trip Approval and Visibility

One of the biggest leaks in travel budgets is the lack of pre-trip approval. When employees book travel without prior authorization, it's often too late or too costly to make changes once a manager realizes the trip is over budget or unnecessary. Implementing a robust pre-trip approval workflow is essential for proactive cost control.

Automated Approval Chains: Manually emailing trip details back and forth for approval is inefficient and prone to delays. A modern travel platform automates this entire process. You can configure multi-level approval workflows that match your company's organizational structure. A request might first go to the employee's direct manager, and if it exceeds a certain cost threshold, it could then be automatically escalated to a department head or the finance team. Approvals can often be done with a single click from an email or a mobile app, making the process fast and convenient for everyone.
Full Visibility Before the Purchase: The key benefit of this system is that it provides approvers with all the necessary information—itinerary, total cost, and any policy violations—before any money is spent. This allows managers to have a meaningful conversation with their team members about the trip's ROI and to explore more cost-effective options if necessary. It transforms the approval process from a rubber-stamping exercise into a strategic checkpoint.
Empowering Travelers with Information: Technology doesn't just help managers; it helps travelers too. By integrating policy guidelines and budget information directly into the booking tool, you empower employees to make smarter, in-policy decisions from the start. When they can clearly see which options are preferred and what the budget implications are, they are far more likely to book responsibly. This creates a culture of trust and accountability, where employees are treated as responsible stewards of company resources.

3. Centralize Payments and Eliminate Out-of-Pocket Expenses

A major source of hidden costs and administrative headaches is the reliance on personal credit cards for business travel. When employees pay for their own flights, hotels, and meals, it creates a cascade of problems long reimbursement cycles, a lack of real-time spending visibility, and the administrative burden of processing expense reports. Centralizing payments is a game-changer for cost control.

The Power of a Centralized System: By using a centralized payment method—such as a corporate card, a virtual card, or a direct billing arrangement managed through your TMC—the company pays for all major travel expenses directly. This means employees no longer have to pay out-of-pocket for their flights and hotels. This immediately improves employee satisfaction (no one likes waiting weeks for reimbursement) and gives the finance team instant, real-time visibility into travel expenditures as they happen.
Virtual Cards for Enhanced Security and Control: Virtual credit cards (VCCs) are an increasingly popular tool for centralized payment. A unique, single-use card number can be generated for each booking with a specific spending limit and date range. This drastically reduces the risk of fraud and misuse. For example, a VCC can be issued for a hotel booking that is valid only for the cost of the room and taxes for the duration of the stay, preventing any unauthorized incidental charges.
Streamlined Reconciliation: Centralized payments make the expense reconciliation process incredibly simple. Since most of the major transactions are already captured and coded by the system, the need for manual data entry and receipt chasing is dramatically reduced. This frees up the finance team to focus on more strategic tasks like data analysis and budget forecasting, rather than administrative paperwork.

4. Harness Data and Analytics to Uncover Savings Opportunities

You can't manage what you don't measure. In the past, travel spending data was often fragmented and difficult to analyze. Today, modern travel platforms provide powerful, user-friendly dashboards and reporting tools that turn raw data into actionable insights.

Real-Time Dashboards: A centralized dashboard gives you a live, at-a-glance view of your company's travel spend. You can see how much is being spent by department, by project, or by individual. You can track spending against budget in real time, identify top travel routes and suppliers, and monitor policy compliance rates. This level of visibility allows you to spot trends and address potential budget overruns before they become a problem.
Identifying Missed Savings: Advanced analytics can help you uncover hidden savings opportunities. For example, a report might show that your team frequently books last-minute flights to a particular city. This could be an indicator that better planning is needed, or it could be an opportunity to negotiate a corporate rate with an airline on that route. Similarly, data can reveal "rogue spend" with non-preferred suppliers, allowing you to reinforce your policy and channel more of your business to partners with whom you have negotiated discounts.
Negotiating Power with Suppliers: The data you collect is your most powerful tool when negotiating with airlines, hotel chains, and car rental agencies. When you can show a supplier exactly how much volume you've spent with them over the past year, you are in a much stronger position to negotiate better rates, discounts, and perks. A consolidated travel program, managed through a single platform, ensures that all your spending data is captured and leveraged to your advantage.

5. Foster a Culture of Cost-Conscious Travel

Ultimately, technology and policies are only as effective as the people who use them. The final and most crucial step in controlling travel spend is to foster a company-wide culture of cost-consciousness. This isn't about micromanaging employees; it's about educating them and aligning their incentives with the company's financial goals.

Communication and Education: Regularly communicate the "why" behind your travel policy. When employees understand that controlling travel costs helps the company invest in other important areas—like product development, better benefits, or bonuses—they are more likely to be mindful of their spending. Share data with them, perhaps in a quarterly summary, showing the company's travel spending trends and highlighting areas of success.
Lead by Example: A cost-conscious culture starts at the top. When senior leaders adhere to the travel policy and demonstrate responsible spending, it sends a powerful message to the rest of the organization. If executives are booking first-class flights while asking everyone else to fly economy, the policy will quickly lose credibility.
Gamification and Incentives: Some companies have found success with "gamification" or incentive programs. For example, you could offer a small bonus or reward to employees who consistently book their travel under budget. This turns cost-saving into a positive, collaborative effort rather than a top-down mandate. The goal is to make employees feel like partners in the company's financial success. By combining a smart, automated policy with the right technology and a culture of accountability, you can gain firm control over your company's travel spend. This strategic approach will not only lead to significant cost savings but will also improve operational efficiency and create a better, more streamlined experience for your travelers.