With the right steps, businesses can mitigate the hidden costs of business travel and maximise their gains. How can a business mitigate hidden costs? The rates for value-added tax changes depending on the country in question, but there is no denying that paying taxes for food, accommodation, travel and tolls represent a significant portion of hidden business travel expenses. Those who spend on business travel also have to deal with VAT. All these problems will lead to employee burnout, which, in the short and long-run, hurts productivity. There are several problems associated with long trips, like jet-lag and adjusting to time-zone differences, which can take a toll on someone’s well-being as well as their ability to work. In addition, the business trip itself can be very stressful, even if it was successful. Those who return from business trips will find extra work waiting for them at their desk and these employees would then have to take their work home to keep up with the workload that has built up while they were away. The extra work is a burnout for employees. Businesses are expected to and should take care of their employees during these situations, but it can drive up costs. These are hidden costs because these expenses can expand significantly depending on circumstances beyond a corporation’s control, like terrorist activity, airline cancellations and strikes. Providing adequate care is a significant business travel expense that tends to creep up on businesses. Providing care in unexpected circumstances Employees can easily spend those hours preparing for the meetings that will take place during the business trip and increase their chances of closing the deals. Furthermore, having to arrange their own hotel booking and travel once they land is another headache that is going to eat into working hours. Employees who are expected to book their own trips often waste time doing so, they are known to spend at least three hours of their day arranging travel, which hurts productivity making it a hidden cost. Not working with a travel management company can save companies upfront business travel expenses, but they pay for it in other ways. Instead, it focuses on the intangible cost to the company. The hidden cost of business travel expenses goes beyond the obvious monetary cost.
The hidden cost of business travel expense In this blog post, we are going to discuss some of the hidden costs of business travel expenses. These costs raise business travel expenses and undermine the gains made from taking a business trip. Hidden costs refer to the liabilities incurred by a company, but are not recorded on a balance sheet. However, what most businesses have trouble paying attention to is the hidden cost of business travel. On average, travellers spend €162 on airline travel per day and the number is only expected to increase over time. Business travel is a huge component of corporate expenses.
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