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Corporations across the world today struggle with rising travel costs. Many companies require their employees to travel in order to conduct business. Typically the travel occurs during the week and maybe on a weekly base. Sometimes it requires the employee to be gone all week or longer. Hotel and rental car cost rise with last minute scheduling. It’s true that airlines, hotels and rental car companies prey on companies with business travelers. Airline rates are climbing and last minute scheduling is very expensive. Some businesses have the flexibility to schedule trips in advance, up to two to three weeks. Earlier planning can save money in the long run. However, if your company has multiple employees that travel regularly than annual travel expenses will continue to rise.

So, how does a company save on annual travel expense?

Most people and companies do not realize that the airlines, hotels and rental car companies will negotiate. Yes, each of these groups will negotiate fees to get your business. The airlines would rather have someone in their seats than leave it vacant; the hotels someone in their room and rental cars in their automobiles. A vacant room doesn’t produce revenue. However, many people don’t know how to negotiate with these various groups of companies. Have you ever wondered why these companies ask you if you’re traveling for business or pleasure? That’s the question that keys them whether to negotiate or not. If you’re traveling for business, they automatically know that your travel arrangements are not flexible. You have to be at a location, at a particular time, on a certain date. If you’re not flexible than their not going to negotiate, you’re stuck paying whatever they charge.

How does a company get around this system and negotiate for savings?

The answer to this question is Travel Club. Have you ever bought health insurance as an individual? The cost of a good healthcare program for yourself and family is quite expensive. However, the company that you work with purchases a healthcare program as a group and the cost of the program for the individual is less than if you purchased it yourself. Buying as a group gives the company purchasing power. The same concept is utilized for the travel club. Travel club companies purchase blocks of rooms at resorts, hotels and even cruises at discounted rates. This allows members to use these rooms during the specific dates. However, you’re not restricted to stay at these locations during the specific dates. Since the travel company has Purchasing Power it allows them to negotiate on your behalf. Therefore, if you’re a member, the travel club stands behind their members, they’ll negotiate for you. If you’re a business traveler that needs to be at a particular location on a certain date, the club will arrange your airline and hotel or resort and rental car at discounted rates.

Can a company buy the membership?

Unfortunately, there are no corporate memberships, each individual receives the membership. Each individual uses the membership as they desire. Each of their family members can use the membership. Although, the company can purchase the membership for the employee, like a bonus or a benefit, and the employee uses the membership to reduce travel expense for the company. Ultimately, the company will save on its annual travel budget and the employees will be happier. It’s a win, win situation for all parties involved.

How does a company enroll its employees into a travel club?

Simply click on the link below and you will be taken to a website that contains a button. Click the button to enter the travel club program. The cost to enroll is $3,000 and lasts the life time of your employee. If the company purchases the program this becomes an expense or deduction.

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