Shulou(Shulou.com)11/24 Report--

"how else can the travel expenses of the enterprise be saved?" This is a problem that every business manager has thought about.

For most enterprises, travel cost is the second largest controllable cost after human resources cost, including explicit costs such as travel product procurement expenses and travel service expenses. there is also the hidden time cost of employee booking, approval, reimbursement process, bill review and so on.

After the end of the epidemic, real economic activities increased significantly, corporate travel consumption increased significantly, and the amount of consumption increased rapidly. According to the 2023 expense Control and Travel trend Analysis report, from January to July 2023, the overall amount of travel consumption increased by 95.49% month-on-month, and the consumption order volume was 61.36% higher than that of the mall. Wang Youyan, director of the Urban Social and Economic Survey Department of the National Bureau of Statistics, wrote an article on July 18, 2023, pointing out that the national average price of air tickets, transport rental, hotel accommodation and tourism rose 20.2%, 5.0%, 8.6% and 7.1% respectively in the first half of the year.

Content source "2023 expense Control and Travel trend Analysis report"

Behind the "simultaneous increase in volume and price" in corporate travel consumption, the cost pressure on enterprises to develop business has also increased significantly. In the face of high travel costs, enterprises want to control but can not control, it seems that business growth brings an increase in revenue, but the actual profit continues to be damaged after accounting. Enterprises are facing unprecedented pressure to reduce costs and increase efficiency, how on earth can travel costs be "saved"?

01

How to solve the fundamental contradiction between business development and cost control?

When it comes to saving travel costs, most enterprises have their own unique "experience". For example, the online cost control system, instead of reimbursement in the middle of the event and consumption control in advance, manages the consumption behavior of employees in compliance from the source; for example, multi-supplier joint price comparison, access to multiple TMC platforms, choose the most cost-effective price for ordering; or sign escrow agreements with hotels as much as possible to de-intermediate direct suppliers to get the lowest price. A variety of solutions have been put into action, and enterprises have tried their best, but found that they have achieved little success.

Most employees are ordering scenarios and have no awareness of "actively saving for the enterprise". When spending, think that "money is not your own, travel experience is more important!" So as to select the top grid on the line and exceed the reservation standard. In some enterprises that are not required to use the TMC platform to order, employees do not have a strong intention to use it, and prefer to post ticket reimbursement after offline consumption. With the release of the hotel price increase in the epidemic, the hotels that meet the standard before exceeding the standard need personal advance, and the negative mood of the staff is high, which seriously affects the business enthusiasm and frequently requests to increase the standard of difference, but the cost of corporate travel can not be increased indefinitely. Financial staff are faced with problems.

There has been an inextricable contradiction between business development and cost control for a long time-excessive cost reduction, causing dissatisfaction among employees, and eating back at the development of business; but finance can not really liberalize the cost control of the business. there are more examples of excessive business development leading to more losses.

The core reason is that there is no strong relationship between the profits of enterprises and the interests of individuals. If you want to really save money, you must be fully involved, so that the profits of the enterprise are related to the personal interests of employees, and employees will take the initiative to lower travel standards and "work together" with the enterprise.

02

"work together to save", let the whole staff take the initiative to participate in "saving money"

Joint thinking issued a "joint effort to save" plan, so that all members of the enterprise are willing to take the initiative to participate in saving money. When employees order hotels that are far below the standard, they will receive a certain amount of red packet rewards, which can be used for private consumption in the mall, such as ordering takeout, taxi hailing, travel booking and so on. Among them, there is no need for the enterprise to pay any cost, and the money for employee motivation is borne by Hesi.

Click the link to learn about the rules of "joint force province"

By aggregating the consumer market, Hesi helps enterprises measure and optimize the consumption behavior of their employees, so as to make the "joint effort saving" plan a sustainable mutually beneficial and win-win model. For enterprises, employees can be subsidized and enterprises can save costs; for Hesi, by issuing vouchers to employees, it can further drive transaction volume, thus reaching cooperation with more high-quality suppliers and obtaining greater subsidies. Feedback to the enterprise to form a positive cycle. This is also one of the cores of the Heshi more economical Program.

03

The month-on-month GMV of the enterprise hotel decreased by 8.7%, and the over-standard order decreased by 32%.

How many provinces are there in "joint efforts"? The unit price of the hotel room per night decreased by 37.8 yuan on average, the monthly hotel GMV decreased by 8.7% compared with the previous month, and the number of over-standard orders decreased by 32%. The answer paper was handed over after a trial run of "Haili Province" for three months.

As a fast-moving retail enterprise with 3000 + employees, thousands of people travel frequently, with an average monthly travel of GMV80 10,000 +, with a wide range of business trips, including county-level and other sunken cities. In 2022, the enterprise went online without reimbursement, opened the whole process of application-consumption-reconciliation-invoice, and subverted the traditional offline reimbursement model, the intelligent travel mode of employee 0-advance exemption and financial automatic reconciliation was well received internally.

With the release of the epidemic in 2023, the enterprise's travel is facing new challenges. The staff found that the price of the hotel increased rapidly, and the hotels that met the standard before exceeded the standard need personal advance, and they could only choose hotels with 1-2 stars lower than before. Colleagues who travel frequently have a high negative mood and respond to requests for higher travel standards in internal forums many times, but the travel standards of enterprises are closely related to the cost structure and cannot be improved indefinitely, so administrative and financial problems are faced.

At this stage, the enterprise "beat" the cost of travel by participating in "joint effort saving". As one of the first enterprises participating in the online operation of "Heli Province", two months after joining the "Heli Province", the cost of a single room in the hotel has been reduced from 225 yuan to 198 yuan, and the monthly cost savings in the hotel have dropped by 24% compared with the previous month. Excessive orders also dropped from 12% to 7%. In order to obtain consumer credit coupons, more and more employees spontaneously lower accommodation standards, and the cost reduction effect is highly recognized by the management of the enterprise.

In addition, comprehensive "joint force province" application statistics, participating enterprises:

More than 80 per cent of ● consumption red packets are used within one week after employees receive them. The two favorite scenes of employees are dining and car use.

The single-night room rate of ● hotel is reduced by 37.8 yuan on average, the monthly hotel GMV is down 8.7% from the previous month, and the number of over-standard orders is reduced by 32%.

Save money and take part in it. According to Ma Chunquan, founder and CEO of Hesi, "to motivate employees, it is necessary to create through the system and business model."Haili Province" has helped enterprises achieve visible cost reduction and efficiency, and employee satisfaction has increased significantly. In the current economic environment, enterprises and employees should make joint efforts to "earn" and "save". Enterprises should not pin their hopes on employees' active contribution, but they can guide all employees to participate in the "money-saving" plan through a reasonable mechanism, let employees actively embrace the new model, and form a more effective virtuous circle of corporate cash flow.

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