Navigating the balance between cost reduction and a positive employee experience during business travel

Creating a positive employee experience is vital to the success of a business, yet achieving this while also adhering to budgets can be quite challenging. How can businesses strike a balance between enhancing employee satisfaction and complying with budgetary restraints outlined in their corporate travel policy? With travel costs expected to rise in 2025, airfare alone is projected to increase by 1.9%, it’s important now more than ever that companies ensure their business travel policies are cost-effective. By meticulously overseeing resources and maintaining a focus on employee well-being, organisations can create a positive work environment without compromising on their budget.

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The link between cost reduction and a positive employee experience

To truly understand the balance between cost reduction and a positive employee experience, it’s important to recognise that both are equally important. Felix Brand, chief strategy officer at Freenow, sums it up well as he states, “While managing costs effectively is crucial... a truly effective travel strategy involves creating traveller-centric policies that employees actually value, along with careful management to ensure comfort, efficiency, and flexibility on their trips.”

While budget management is key for any business, making sure travel policies cater to employee needs is just as important. Without the right structure, compliance can become an issue—especially since two-thirds of business travellers already admit to not always following company travel policies. This often happens when the policies don’t reflect what employees want or need.

When arranging accommodations for business travellers, businesses often face challenges such as needing to provide a larger room, more amenities, parking, or proximity to a specific location, like a train station. As expected, these preferences usually come with added costs, especially if the traveller requires a popular location.

This creates the conversation of what should a business prioritise? as a preferred location may come with a higher price tag, which raises the question as to what you are willing to compromise on. With many travellers now opting for longer and more purposeful stays, your budget must align with these growing preferences.

Find out what our Head of Client Services, Chris Lyon, has to say about the relationship between cost reduction and a positive employee experience:

"There has always been a fine line between managing a client’s expectations and adhering to company rate caps or budgets. What we find essential here at SilverDoor is getting to know the guest and understanding their needs. It sounds simple, but by taking 5-10 minutes to have a conversation with a guest and truly understand their needs, we make them feel included in the decision-making process."

Chris Lyon, Head of Client Services

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Tips for Navigating the Balance:

We understand it can be confusing where to get started, and that’s why SilverDoor is here to assist you throughout the booking process to ensure that your employee's needs are effectively met. Below we have outlined a few tips on how best to manage this...

  Monitor budgets closely using online booking tools:

Ensuring you stay within your budget is one thing, but ensuring your employees do so when booking can sometimes be difficult. SilverDoor’s online booking tool is the perfect solution to assist with cost reduction while maintaining a positive employee experience. The tool puts employees’ preferences at the forefront of the booking process while ensuring they stay within the company's budget. Our system does this by prohibiting properties that exceed the budget from being booked without approval. As well as this, our booking tool allows employees to select preferences and avoid those they’ve not particularly enjoyed, putting their needs at the forefront of the booking process. Interested in learning more? Book through our online booking tool here…

Hear more about what our Head Account Manager (Americas) thinks about the importance of budgets when managing this relationship:

“It is incredibly important to ensure that the client is educated on what their desired budget is realistically able to afford in their desired location, therefore clearly setting expectations well in advance”.

Robert Carrick, Head Account Manager (Americas)

  Booking serviced apartments over hotels:

Staying in a serviced apartment can significantly help reduce costs for employers. It's much less expensive to self-cater for a week rather than to accumulate hotel restaurant bills for dinner each night. This not only gives employees the freedom to choose their meals as if they were at home, but it will allow them to feel more comfortable in their new environment. This is especially useful for guests with special dietary or religious preferences.

When booking a serviced apartment, you also get significantly more value for money, as serviced apartments typically cost around 25% less than hotel rooms. Additionally, you receive on average 30% more space than you would in a hotel room.

Booking properties close to the workplace to minimise costs and time:

Not only does booking accommodation close to the workplace minimise costs and time, but it is also a much more environmentally viable option. With businesses' environmental impact being at the forefront of discussions—especially with the release of CSRD and SECR—it's now more important than ever for businesses to be aware of their environmental impact. Reducing this impact can help sustain a positive reputation for the business in the long term. Interested in learning more about SECR and CSRD and how they impact business? Read more here...

If you're interested in booking a serviced apartment with SilverDoor to help maintain low costs during business travel, click here…