Rewards points and airline points should be looked at as an asset, not a bonus to be spent haphazardly on electronics or business supplies at the end of the year.
(PRWEB) January 31, 2013
With a new year under way, businesses are looking for ways to reduce costs in 2013. According to OKT Corporate Travel Management, an agency for business travelers, one of the best ways companies can save on travel expenses is by maximizing the use of credit card reward points and rewards from airline business programs.
“Rewards points and airline points should be looked at as an asset, not a bonus to be spent haphazardly on electronics or business supplies at the end of the year,” said Orit Keren, president and CEO of OKT Travel.
According to Keren, each year millions of dollars worth of rewards points are earned by companies using business credit cards and airline business programs. She advised businesses to redeem their points for business travel.
“Companies save thousands of dollars when points are redeemed for travel expenses,” Keren said. “Redeeming points for merchandise, such as an iPad, laptop or camera, is one of the worst ways to cash in on those rewards.”
Some companies use credit cards to charge $10 million worth of expenses each year, she explained. “By using the right credit cards, enrolling in the correct airline business program and redeeming reward points for flights, those businesses could potentially save thousands of dollars,” Keren said.
Experts at OKT Travel estimate that roughly 70 percent of businesses do not maximize the use of credit card reward points. When choosing a credit card, businesses have various options including: airline-specific branded cards, reward points cards, cash back cards and bank points reward cards.
Choose the best cards by considering where the company is located, travel patterns and how much money is spent.
OKT Travel had three tips for businesses looking to accrue more credit card reward points while saving on travel costs in 2013.
1. Evaluate company travel needs
Pay attention to which airlines have hubs in the company’s primary departure city, because these are flights the company will book most often. If there are no hubs in the departure city, look for hubs in the arrival city traveled to most often. Companies should also pay attention to airline alliances if employees do lots of international travel.
2. Choose the right credit card
After evaluating the firm’s travel needs, executives should find a credit card that will maximize point accrual while making travel convenient. Select the card that accrues the most points for the corresponding airline hub and alliance.
3. Take advantage of promotions
Once a credit card has been selected, companies must take advantage of promotions. Pay attention to which purchases yield the most points and make an effort to charge those expenses to the card.
“Using credit card rewards points and airline business program are two of the easiest ways to cut expenses this year,” Keren said. “It just takes a little planning and strategy.”
About OKT Corporate Travel Management
OKT Corporate Travel Management has more than 15 years of experience in providing superior business travel experiences to clients in a number of industries including entertainment, fashion, advertising, venture capital, high tech, defense and more. The OKT Corporate Travel Management team of experts includes multi-cultural and multi-lingual travel agents who are dedicated to providing the highest levels of service for both domestic and international travel planning. For more information, visit http://www.okttravel.com or call 1-800-804-0432 or 516-622-1600.