According to the March 31,  2008 issue of Crain's Chicago Business Magazine, "Companies are tightening travel budgets and policies."  In an ongoing survey about travel plans, out of 73 businesses, 63% plan to use more low-cost carriers, 58% plan to downgrade class of hotels and 55% plan to require pre-trip approval.  With the economy slowing and airfares soaring, how can you help your relocation program stay within budget?   

Here are some ideas to consider when transferring an employee or developing or revising your policy:

• Make certain standard travel policy guidelines are enforced.
• Arrange flights as soon as possible for the initial trip to report to work, trips home, house hunting trip and final trip.
• Require advance notice, and pre-trip approval.
• Search all airlines for best prices.
• Use a temporary housing provider vs. hotel accommodations for temporary living.  This not only proves to be more comfortable but is usually less expensive.
• During temporary living, pay a weekly amount to cover food/meals instead of reimbursing actual receipts, this takes into consideration that a kitchen is available in a temporary living apartment and encourages the employee to be more economical.
• Drive or ship a car to the new location ahead of the household goods so it is available.
• When renting a car is necessary, rent a compact car.
• Negotiate a discount with hotels in major company locations.

An environment of strict travel policy enforcement helps the cause, but there's more emotional baggage that comes along with a relocation.  If the employee is advised up front of the rules, your cost savings initiatives will be much more successful.  Once again, like so many things in our industry, clear communication with transferring employees will lead to smoother, more efficient transitions.