Why business travellers overspend and how to fix it

Last Updated on: March 25, 2025 at 8:41 am

Business travel is a crucial component of corporate operations, enabling employees to attend meetings, conferences, and networking events. However, despite corporate travel policies, overspending remains a persistent issue. Our data shows that business traveller–booked flights cost 21% more than manager-booked ones, and 2-day delays can aggravate costs by up to 23%. With travel costs’ everchanging nature, even what seems to be harmless can be surprisingly expensive—whether it’s a last-minute booking, an overlooked fare class, or an unapproved upgrade.

Business travellers often exceed their budgets due to factors including lack of enforcement, traveller behaviour, and inefficiencies in booking processes. Hidden fees, inconsistent policy compliance, and poor visibility into travel spend can all contribute to bloated budgets. This article explores the primary reasons behind overspending and outlines practical solutions to control costs without compromising employee experience.

Reasons why business travellers overspend

1. Last-minute bookings

Many business travellers book flights and hotels at the last minute, leading to significantly higher costs. In fact, business travellers tend to book trips closer to their trip date compared to managers with a 2-day difference. According to our data, a 2-day delay can aggravate costs by 23%. Similarly, last-minute hotel reservations often lack corporate discounts or negotiated rates.

Solution:

• Implement advanced booking policies that require employees to book travel at least two weeks ahead when possible.
• Use automated travel booking tools that alert travelers when prices are rising or suggest better-priced alternatives.

2. Lack of policy awareness or enforcement

Even with clear corporate travel policies in place, many employees may not be fully aware of them or simply bypass them. When there are no real-time restrictions or oversight, travelers may book luxury accommodations or premium flight classes that ends up getting rejected by travel managers, which then lead to further delays..

Solution:

• Use automated policy enforcement tools within travel booking platforms to ensure compliance. These tools can block out-of-policy bookings or require approvals for premium options.
• Educate employees on corporate travel policies through regular training and easy-to-access guidelines.

3. Hidden fees and additional charges

Business travellers often incur extra charges such as baggage fees, hotel service charges, ride-hailing surcharges, and Wi-Fi access. These incremental expenses may seem small but can significantly impact the overall travel budget.

Solution:

• Use corporate travel platforms that include bundled deals covering amenities like baggage and Wi-Fi.
• Negotiate corporate discounts with preferred travel and hospitality providers to minimize extra charges.

Solutions to control overspending

1. Implement advanced booking policies: Encourage or mandate booking travel well in advance to take advantage of lower rates.​
   
2. Enhance policy compliance and awareness: Regularly communicate travel policies to employees and utilize automated tools to enforce compliance, ensuring that all bookings align with company guidelines.​
   
3. Conduct regular rate audits: Perform systematic audits of hotel rates to ensure that negotiated discounts are correctly applied and available to travellers.
   
4. Utilize integrated travel management tools: Adopt comprehensive travel management systems that capture all booking data, regardless of the booking channel, to maintain visibility and control over travel expenditures. ​
   
5. Negotiate corporate rates and benefits: Work directly with suppliers to secure favourable rates and additional benefits, such as complimentary internet access or breakfast, to reduce overall travel costs.​

Prevent business travel overspending with automation

By adopting proactive measures such as real-time policy enforcement, corporate travel platforms, and data analytics, businesses can balance cost control while maintaining a seamless travel experience for employees.

Business travel overspending can strain corporate budgets, but with automation, clear policies, and smart booking strategies, companies can significantly reduce unnecessary costs. Automate your business travel policy with TruTrip—book a demo with us today or sign up for a free trial