Why SME directors should rethink ‘cheapest flight wins’ travel policies

Written by Mark Wilson

“Businesses often believe they are saving money by always choosing the cheapest flight or hotel, but in many cases they are simply shifting the cost elsewhere,” says Paul Baker, Sales Director at Global Travel Management. 

“Delayed arrivals, exhausted employees, missed meetings and lost productivity can ultimately cost far more than the original saving.”

It was a lesson one UK manufacturing business learned the hard way.

Earlier this year, the company sent a senior sales manager to Dubai for a series of meetings with a prospective international distributor. Keen to keep travel costs under control, the business booked the lowest available airfare - an overnight flight with a lengthy stopover and an arrival time just two hours before the first meeting.

On paper, the savings appeared worthwhile.

In reality, the trip quickly unravelled.

After a delayed connection, the traveller arrived tired, stressed and several hours late. One meeting had to be rearranged entirely, another was shortened significantly and valuable networking opportunities were missed during the first day of the visit. By the end of the trip, the business had spent additional money on rebooking transport and extending accommodation, while the employee returned to the UK exhausted.

The flight may have been cheap, but the trip itself was not.

For many SMEs, travel policy decisions are still driven primarily by headline cost. Flights, hotels and rail fares are often selected according to the lowest available price, particularly during periods of economic pressure.

However, a growing number of businesses are beginning to recognise that the cheapest option is not always the most commercially effective one.

International business travel is ultimately an investment in growth. Whether employees are attending trade events, negotiating contracts or maintaining overseas relationships, the objective is to maximise commercial value - not simply minimise expenditure.

Yet poorly planned travel arrangements can undermine that objective remarkably quickly.

Early morning departures, multiple flight connections and unsuitable hotel locations frequently create hidden operational costs. Employees may lose productive working hours, struggle with fatigue or arrive unprepared for important meetings. In sectors where relationships and first impressions matter, these issues can directly affect business outcomes.

Travel disruption has made the problem even more pronounced. Flight cancellations, air traffic control delays and rail strikes continue to affect international journeys across Europe and beyond. Travellers booked onto tightly scheduled low-cost itineraries often have fewer alternatives available when disruption occurs.

“The cheapest option can sometimes be the least resilient option,” says Paul Baker. “If a journey goes wrong and there’s no flexibility built into the itinerary, the wider commercial impact can escalate very quickly.  Experienced travel managers know the truth behind the statement ‘the best fare is rarely ever the cheapest’.”

There is also a growing employee wellbeing dimension to business travel planning.

Frequent travellers are increasingly vocal about the impact of poor itineraries on stress levels, work-life balance and overall performance. Businesses that repeatedly prioritise minimal cost over traveller experience may inadvertently contribute to burnout, lower morale and reduced productivity.

This does not mean SMEs should abandon cost control altogether. Rather, many are moving towards a more balanced approach that considers value alongside price.

Instead of focusing solely on the cheapest fare available, businesses are increasingly assessing factors such as total journey time, flexibility, baggage allowances, airport location and arrival schedules. A slightly more expensive direct flight may deliver significantly greater value if it allows an employee to arrive rested, prepared and on time.

Hotel selection is evolving too. Businesses are beginning to recognise that accommodation located close to meeting venues or transport hubs can improve efficiency and reduce local travel costs, even if nightly room rates are marginally higher.

Technology is also helping SMEs make smarter travel decisions. Modern booking platforms provide greater visibility over travel patterns, disruption risks and overall spend, enabling businesses to evaluate travel performance more strategically.

Importantly, many SMEs are also reviewing travel policies that were originally designed for a very different business environment. Policies focused exclusively on lowest-cost booking may no longer align with modern operational realities.

As international business travel becomes more complex, businesses are increasingly recognising that travel should support performance, resilience and employee wellbeing, not simply reduce short-term costs.

Successful SMEs are often not the ones spending the least on travel. They are the ones spending more intelligently.

For businesses competing internationally, the real question is no longer how cheaply employees can travel, but how effectively.