How Navan Rewards helps companies cut their travel spend

It’s tempting to max out the budget when you book a business trip, right? After all, as long as you stay within policy, there’s no reason not to choose the nicest hotel available. But this approach doesn’t help companies save money — something that is front of mind for many businesses at the moment. So we created a way to incentivise travellers to choose more cost-consciously: Navan Rewards.

Industry leaders have spoken about the recent shift towards more purposeful business travel, with a focus on value for money and delivering a great traveller experience.

Navan Rewards assists in both areas. Travellers — and travel bookers — earn rewards when they book more cost-effective hotels that save their company money. And Navan fully funds these rewards.

The old approach to price caps

In the past, companies put static price limits on hotel bookings. But hotel rates are fluid and change constantly depending on supply and demand. 

When demand is high, these static price limits might be too restrictive. And when rates are low, travellers might opt for more expensive options.

As long as travellers are booking within policy, it might not appear to be a problem. However, it’s a missed opportunity to generate savings.

How to spend the budget better

Navan has changed the way policy caps work by focusing on what a hotel should reasonably cost at any given time.

Using a sophisticated algorithm, Navan calculates the fair market price of a hotel booking based on location, date, and demand at the time of search.

When travellers book below that fair market price, they are rewarded with a portion of the savings in the form of personal travel credits. They can then use these travel credits to book their next holiday on Navan.

The employee gets an incentive to spend less, and the company saves money. Everyone wins.

The benefits don’t stop there

As well as saving money on hotel spend, companies that use Navan Rewards see:

• Greater employee satisfaction
• Increased platform adoption
• Better visibility of spend and traveller whereabouts

What’s more, travellers continue to earn third-party loyalty points at the same as earning Navan Rewards, increasing the benefits of each business trip they take.

To recap

• Navan fully funds these rewards. Companies don’t have to pay anything!
• Employees also earn when booking on behalf of others. Travel managers and executive assistants will bank rewards when booking on behalf of others.
• Rewards can be redeemed for personal stays booked on Navan.
• Admins see the savings add up in a real-time dashboard.

Navan Rewards is a game-changer for employees, travel managers, and finance teams, with wide-ranging benefits for companies as a whole.

Ready to see how Navan Rewards can help your company save money? Book a demo today.