by Frank Whyte, Training Services On Demand
I'm fussy about travel costs, even though I'm not a cheap guy.
Mainly, I'm fussy because travel is a significant cost for my business. Back when I was a mere cog in a corporate machine, I could only roll my eyes at travel excesses. Now that I have a stake in a company, inefficient travel affects my take-home pay. I'm fussy about travel costs.
Travel is the easiest area in which to save or boost costs. A single bad decision can cost thousands of dollars. In corporate America, I've seen people choose a flight that left 20 minutes later, but cost $300 more, because it was just a bit more convenient. I've seen them pass-over a half-priced ticket so that they could rack-up frequent flyer miles on a certain airline. People will do outrageous things with their company's travel dollars, and corporate travel agents often conspire in the swindle. None of these people would dream of shoveling their own money into the furnace.
Today I work with many independent contractors, who receive a fixed fee for their services, travel included. You can bet that these folks are interested in how I economize on travel. I began jotting-down my techniques for them, and added this chapter to the Road Warrior's Digest on the assumption that we're not the only cost-conscious business travelers on the planet.
Saving on Airfare
When shopping for airline tickets, two rules are inviolate: Shop early and shop creatively.
Shop early because you'll get hammered buying last-minute tickets. With the exception of the occasional lucky break on LastMinuteTravel.com, you're just going to get hammered on late tickets. America West Airlines swings the lightest late-in-the-game hammer, so check them first when you're cornered.
Shop creatively because just a little exploration can yield a fistful of rescued dollars. Being creative means looking at more than one travel reservation site. I'll routinely pit orbitz.com against travelocity.com against expedia.com to identify the best itinerary and pricing. Usually the results are the same, but not always. And I'm not done yet...
After checking with the online agencies, I'll price-out the best/cheapest itinerary on the airline's web site to see if there's a difference. Very often there is; I'm writing this an hour after saving a nice chunk of change by booking through airtran.com. Orbitz.com was ingenious enough to identify the cheapest airline for my trip, but they couldn't match the airline's straight-to-consumer online pricing. As side benefits, airlines often give frequent flyer bonus miles for booking thorough their web sites, and ticket changes are easier when you deal directly with the carriers.
You'll also want to look at Southwest.com. Although I hate this airline's cattle-car approach to passenger handling, they often feature fares that are difficult to ignore. They don't participate in the traditional airline reservation systems, so Southwest's discount fares require a special visit to their web site.
Finally, make sure you've considered all of the city options. JetBlue saves money by renting gates at Long Beach instead of LA International, and we can learn a lot from their approach. If you're headed to Miami, are you willing to look at Ft. Lauderdale? How about San Jose instead of San Francisco? Cincinnati instead of Louisville? Several online systems let you check airports within 50 or 70 miles of your destination, and you're wise to let them offer alternatives.
I'd guesstimate that I save a couple of hundred dollars on each of my trips through creative browsing. Is it worth my time? I've done the numbers, and it is. I'll also admit that I enjoy the thrill of the chase. And airline ticket savings are only the beginning of the trip.
Saving on Ground Transportation
First, don't buy any sort of ground transportation until you get the lay of the land. Sometimes, free shuttles will get you where you need to go for the cost of a $2 tip. Call and ask your destination hotel how to get from A to B, and they just might surprise you with ideas. My first trip to Toronto got a bunch easier when I learned about the airport bus lines; Rental car costs there are outrageous.
Avoid taxis. Again, look for shared services; buses or van shuttles that will do the job for a fraction of hack rates. A taxi ride is inevitable only if renting a car is a bad idea (usually because of parking costs) and you're heading to a destination not served by shared transportation.
Car rentals are great in touristy destinations. If you've visited Orlando, you know that rental cars are practically free there. In other places, you have to do something that I hate to do: pay more than $40/day for a car. I'll admit to being a cheapskate on this one, but if you're familiar with the array of taxes associated with car rental in most cities, you already know that the base price is only a starting point for the real fees.
Renting a car also might involve parking costs at your destination, which makes the bad news worse. Read the above advice regarding shuttles, and make sure it's actually worth renting a car.
If renting makes sense, rent as inexpensively as possible. Again, because fees and taxes comprise up to 40 percent of your invoice, any dollars you save are cascading dollars.
A caveat here: Don't rent from an off-brand outfit that offers economy at the expense of safety. I learned that lesson the hard way.
Searching for cars through the online systems (e.g., Orbitz) lands you in a spreadsheet of pricing options. You'll see rental car companies on the X axis, plotted against car types on the Y. You get to select from prices from the grid.
I've found that compact cars get me to my destination just as effectively as luxury cars, so I look at the numbers closest to the top. If all of the grid prices are too high (or on the only good rates involve no-name companies), that when you'll want to get creative.
You may find an oddball price at the very bottom of the online pricing grid. That's where the special-use vehicles are listed. Yes, I've driven to my customer locations in pickup trucks and minivans, but only because they were priced less expensively than subcompacts. I've never rented a box truck or a forklift, but don't put it past me.
I've also reserved a car for a week and used it for four days. Often, weekly rates are so low that it's best to take a big bite of time that you have no intention of swallowing. Once, when I returned a car three days early, the guy at the counter tried to jack me up to the exorbitant daily rate because I hadn't kept his car long enough (as if that makes sense). I generously offered to take the keys home with me and mail them back so that he'd receive them toward week's end, thus qualifying me for the weekly rate. He finally conceded that maybe he could just leave well enough alone.
When I buy airline tickets online and have the option of checking companion rental car rates, I always do. I've seldom found a great deal that way, but it's happened.
Occasionally, I've had good luck bypassing the online rates and calling the franchisee at my destination. Sometimes, the "real people" staffing the rental booth can swing deals that the mother ship doesn't post on the Internet.
And as an important aside: Talk to your insurance agent. Find out how you're covered when you rent a car so that you can confidently refuse redundant coverage at the rental car counter.
Saving On Hotels
Two important rules regarding saving money on hotels:
Suburban (not downtown) hotels are always the best bet. I'm in love with all-suite hotels, such as Candlewood Suites, that offer home-like accommodations at surprisingly affordable prices.
As with airline tickets, I hate to admit that I occasionally abuse the system: I use online travel sites to identify good destination options, then call the hotel to chat with the local folks about rates. The humans on the ground almost always beat Internet rates. And you chat with some interesting people this way. The assistant managersthe room-rate decision-makerstend to staff the reservation line at midday, which is the best time to call.
Avoid hotels near college campuses or sports arenas. Never book at a hotel that aggressively promotes the availability of truck parking. Find-out what restaurant is at the hotel; You should never eat at a hotel restaurant: you're checking so that you can avoid staying at a hotel with a "Hooter's" next to your room. (E.g., Ramada Inn, Manchester, New Hampshire). Never book space at a hotel described as "trendy" unless you crave misfortune.
I won't stay at a dump. I want a room that's clean, quiet and convenient. But above that, I'm not too picky. With hotel rooms, you're paying for a bed, a shower, a TV and a phone. Are you better served at a "luxury" downtown hotel that charges $2.00 for a soda and $20 for parking, or at a suburban suite hotel that charges 25 cents for a soda and offers free parking?
To me, a room is worth $60, a good room is worth $80, and a room in a pricey market (like New York City) is worth $100. I'm very successful at hitting those modest caps, and I never stay in shabby surroundings.
Eleven Rules for Road Warriors
- If you think you're stuck with a cancellation fee or change penalty, negotiate. Negotiate as soon as possible.
- When you talk to people who control your journey, smile.
- Never use super cheap, no-name rental car companies.
- Don't eat at a hotel restaurant: If you can't leave the property, order Chinese food or pizza.
- Don't accept the last (or that airline's only) flight out of a city.
- Avoid traveling at rush hour on either end of the trip. The best flight times are mid-week at mid-day.
- Don't put yourself in an unfeasible time or cost scenario: It may make more sense to stay overnight. If you make that decision in order to save airline dollars, weigh the rental car, meal, and opportunity costs associated with the decision.
- Always dress as though you're about to walk through a metal detector.
- Keep a draft copy of your expense report in your pocket, with a bic pen. Carry a wad of $1 bills in your pocket, safety pins in your briefcase, and a spare credit card in a secret place.
- When you're not 100 percent convinced that an airline itinerary will work as planned, buy a second, fully refundable (expensive) ticket on another airline. If you don't use it, get a refund; it was free insurance.
- Look at options, and I mean out-of-the-box options. There's more than one way to get almost anywhere. Driving just might make sense.