In many companies, decisions about business travel are still made using a single criterion: the price of an airline ticket. At first glance, that seems logical – after all, costs need to be controlled. In practice, however, it often turns out that the seemingly cheapest option generates additional expenses, stress, and time losses.
That’s why more and more organizations evaluate business travel using a TCO (Total Cost of Ownership) approach, creating a true TCBT (Total Cost of Business Travel).
What is TCO in Business Travel?
Total Cost of Ownership in the context of business travel means the full cost of a trip incurred by the company. It includes not only the ticket price and accommodation, but also all indirect and operational costs that arise before, during, and after the trip.
Taking TCBT into account helps companies make decisions that are more beneficial from a business perspective – even if the initial invoice amount appears higher.
TCBT Components That Are Most Often Overlooked
Billable hours – long layovers and commutes directly reduce productivity.
Fatigue and stress – they have a direct impact on the quality of meetings and business decisions.
Delay risk – “tight connections” increase the likelihood of delays or cancellations.
Local transportation costs – taxis, transfers, and additional rides.
Poor hotel proximity – results in lost time and increased logistical risk.
Operational cost of organizing the trip – time spent by the office manager, HR, or an executive assistant.
Example: Two Options for the Same Trip
Option A (seemingly cheaper): a flight with a connection, a hotel located 40 minutes from the meeting venue, and no transfer. Lower ticket price, but higher risk of delays and fatigue.
Option B (higher “sticker” price): a direct flight, a hotel 10 minutes from the meeting venue, and an organized airport–hotel–airport transfer. Higher upfront cost, but significantly lower risk and time savings.
From a TCBT perspective, Option B is often the more cost-effective solution.
How to Make Decisions Based on TCBT
A good standard is to prepare three travel options:
- a budget option,
- a balanced option,
- a safe option.
This makes the decision informed, transparent, and tailored to the importance of the meeting.
Checklist: Do You Analyze TCBT?
- Do you count employee time as a business cost?
- Do you avoid connections with a high risk of delays?
- Is the hotel selected based on the meeting location?
- Do you include local commuting costs?
- Do you have a plan B in case of changes during the trip?
- Is the trip-organization process time-efficient?
How Trip Flow Approaches TCBT
Trip Flow evaluates every business trip through the lens of TCO. After receiving a request, a Trip Flow specialist selects the optimal flight connections, a hotel near the meeting location, and transfers that complete the end-to-end logistics. As a result, companies reduce the real cost of travel, and employees travel more calmly and efficiently.
In addition, with Trip Flow you get a dedicated travel assistant (concierge) you can contact at any time during your trip – asking for clarification or support at any stage.
